Closing an overdrawn account.

Joek_2

So, I've got the approval to open up a new (very) basic bank account with HSBC (or Natwest actually - I'm still debating which one is better).

How would I broach the subject with my current bank (Barclays) about closing this one, and turning the overdraft into some sort of interest free loan to pay it off in due course. I'm involved with discussions with CCCS, and they have said that there shouldn't be a problem doing this, but before sending off everything to CCCS, I'm trying to get as much in order by myself to test the waters before going through to the full DMP plan and the expected calls/letters/etc - I'm not shying away from this, but I'd like to see what the banks could offer me (within the DMP budget).

Anyone had any experience with this?

Thanks.

SHEARERBOBS

Hi

I was told by Payplan that you can't close an overdrawn account?

Storm

Um, I've never done it but my gut reaction is that Barclays are highly unlikely to give you an interest-free loan when you're leaving them. Probably the best thing to do is transfer all your direct debits etc, but leave the account open, just paying in a set amount each month to go towards clearing the debt.

Joek_2

I think I see where I'm going wrong with the paperwork - Looking at what CCCS says, if I want to stay with Barclays, I open a basic account with them, CCCS obviously inform them about my circumstances, and they eventually close the main account...

Hmm.

After reading other posters on another one of my threads, I'm going to be opening a new account elsewhere to be honest.

KatrinaC_2

The question is: why would you want to stay with Barclays? Not that they are any worse than other banks, but unless they are very much better you should open a basic account with someone else. That way they cannot take money from your account to repay your overdraft without you giving them the money.

Kat

franny

I am in exactly the same boat as you Joek.

I have the CCCS envelope ready to go back, just in the process of making sure I have done all that I can and whether I need to enter the DMP.

I opened a basic a/c at a different bank to HSBC as I have a large overdarft with them. I will be looking at them as another creditor and paying a little each month to them to pay off the overdraft. It is interest free so no worries really about how long it may take.

No need to close the HSBC a/c, just pay it off although as I am the middle of reclaiming charges they may close it for me.

Joek_2

Thanks all. Just had a word with my CCCS advisor, who said it doesn't particularly matter who you open the new account with, so HSBC/Natwest here I come - it'd be nice to have an account with someone who I don't owe money to really:D

Joek_2

Next question...(sorry). Deciding to go with a Natwest account. I applied online and received all the paperwork to sned off. The odd thing I've noticed is that I seemingly don't send Natwest any Proof of i.d. I've been through the paperwork with a fine toothcomb and it doesn't say to send anything(!). Whereas with the HSBC account it clearly details what info I need to send off.

Is this right? Maybe it's because it's the basic account?

I dunno. If anyone can provide info, that'd be great...

shameless-about-money

Joek wrote:

I think I see where I'm going wrong with the paperwork - Looking at what CCCS says, if I want to stay with Barclays, I open a basic account with them, CCCS obviously inform them about my circumstances, and they eventually close the main account...

Hmm.

After reading other posters on another one of my threads, I'm going to be opening a new account elsewhere to be honest.

The best basic account is the Co-op Cashminder

Newgirl_2

My OH and I asked this question of CCCS as we have our mortgage, a loan, credit cards and current accounts/overdrafts with Nat West. The advice was to include all but the mortgage as debts/creditors and they will be dealt with under the DMP.

Not knowing anything about this, I suspect the debts all bar the mortgage will be lumped as one debt and paid pro rata like everyone else.

Advice on here is to open another current account and ensure your salary is not paid into the defaulted account so the bank can't whip it away. I don't believe you can choose to keep paying the overdraft yourself as that is cheating your other creditors.

Newgirl

AnW'sMum

A lot of organisations can now ID you electronically! Can't remember the mechanics of this but basically you leave 'electronic footprints' all over the place eg insurance applications, ccard usage, voters role etc etc and it is through these that they identify you.