Bank accounts and missed loan repayments.

mumoftwins74

Hi folks, trying to get my life in order... with not much help !!!
Anyway, I bank with the halifax, I also have 3 loans with them....I am on maternity leave and struggling to make repayments, I have looked into a DMP and if I take this on I have been advised to cancel all direct debits, if I do this can they take any money that come into the account to pay the arrears ?? would I be better opening a new account somewhere else ???

Thanks for any advice, my house is up for sale and I am trying to get sorted but my boss tells me he is selling up so I dont even have a job to go back to !

Good time ;o)

opinions4u

I have been advised to cancel all direct debits, if I do this can they take any money that come into the account to pay the arrears ??

Yes. Although they are meant to give you fair warning.

would I be better opening a new account somewhere else ???

Yes. Do it now.

It might be worth you posting on the Debt-free Wannabe part of the forum. You'll probably get more help for your specific circumstances around DMP etc.

Good luck.

http://forums.moneysavingexpert.com/forumdisplay.php?s=&daysprune=&f=76

mumoftwins74

Im still finding my way around as only joined today after recommendation from a friend. Thanks for your help x

endora

opinions4u wrote: »

Yes. Although they are meant to give you fair warning.

No, they are not!

Please see below quote from the FOS website

We would not usually expect a firm to warn customers before it exercises its right of "set off". A warning might prompt customers to move their money to an account with a different firm. But we think that it is usually good practice for a firm to tell a customer as soon as possible after it has made a transfer.

Which means by the time they alert you to the fact it will be too late!

opinions4u

endora wrote: »

No, they are not!

Please see below quote from the FOS website

Which means by the time they alert you to the fact it will be too late!

Your information is 8 years old.

Perhaps a read of the recently updated BOCBS rules 4.1.4A (section b) and 5.1.3 would bring you up to date.

Here's part of the key section that firms must provide:

general information in relation to the nature of the firm's right of set-off and the generic circumstances in which the firm may rely on that right within a reasonable period before the firm seeks to exercise its right of set-off . The FSA considers that this information should be provided at least 14 days before the firm seeks to exercise its right of set-off.

You may apologise below .