Changing Bank Accounts Query

debtfreeby2013

Hi all,

I have recently been looking into changing bank accounts but I was wondering how this works if I have debt with the other bank. I currently have a £500 overdraft but will pay this off when I leave but I also have a customer support loan with the bank from about 4 years ago which I have paid regularly. If I close my current account with them will they just change my direct debit details and keep taking the money as normal or are they likely to call in all of that debt? Or another option is that they change it from a customer support loan to a normal loan (higher interest rates, longer term etc). taking the money as normal or changing to a standard loan I am fine with but if they were to recall the loan (about £3000) I would be a bit stuffed.

Any help would be greatly appreciated.

exel1966

Open a new account elsewhere and keep the old one open. Why close it?

DD's/SO's are only changed if you want them changed, it's not automatically done by a new bank. You can keep your loans with the old bank and just use the new for DD's if you want.

debtfreeby2013

exel1966 wrote: »

Open a new account elsewhere and keep the old one open. Why close it?

DD's/SO's are only changed if you want them changed, it's not automatically done by a new bank. You can keep your loans with the old bank and just use the new for DD's if you want.

My bank account charges £25 a month (one of the reasons I'm changing it as I can get the same benefits for a much cheaper price from a different bank) also I believe there is a minimum income of £1000 a month to the account. Can I just minimise it right down to a basic bank account?

I would still need to change the DD over to a different account as all my pay would go into the new account. I just don't want the bank to recall the loan I have through them that was given to me at a low interest rate to help when I was in dire straits financially, if that makes sense?

exel1966

What's the current bank and the account called ?

debtfreeby2013

exel1966 wrote: »

What's the current bank and the account called ?

It's the Lloyds Premier account. The loan I had was the customer support loan which has a very low interest rate. I just don't want to be in a position where I have to suddenly pay back £3000. I have just moved house and as the C/C debt I have is in name only (it is my fathers card I am just a named cardholder) it does not show on my credit rating so I would struggle to get credit to pay the £3000.