DMP - direct debits to creditors help.

sc85

Hi all,

My husband and I are in the process of setting up a DMP with CCCS and they have been extremely helpful. But, I have one question...(I've asked them like a thousand already today!) The lady at CCCS told me that we are looking at a 1st Nov start date, which is great. And she advised me to make token payments to our creditors...which is fine and together we have worked out what we can afford (based on our monthly surplus and how much we owe each creditor) She advised me to make the payments online by the bill payment method.

My question is......We have DD's set up with them all at the moment. ~If we cancel them won't they bounce when they try to collect the payment and then our bank will charge us???

I'm soooo confused now!

TIA everyone.

Tixy

If you cancel them then your bank won't bounce them for insufficent funds they will just reject them, and so the bank shouldn't charge you.
One exception is if you have DDs going out to the same bank as your current account (eg if you have loans with them or a credit card with them), these will go out anyway regardless of you trying to cancel the DD, and if there were insufficent funds then you might be charged by your bank.

sc85

Brilliant. Thanks Tixy. That's very helpful.

BevieB

Tixy wrote: »

If you cancel them then your bank won't bounce them for insufficent funds they will just reject them, and so the bank shouldn't charge you.
One exception is if you have DDs going out to the same bank as your current account (eg if you have loans with them or a credit card with them), these will go out anyway regardless of you trying to cancel the DD, and if there were insufficent funds then you might be charged by your bank.

We are will the Halifax and have 2 CCs with them. I telephoned and cancelled all our DDs which they did and then they sent a letter to remind me that I had to arrange alternative payment. So it must depend on Bank?