DMP and Current ACcount

rosiesposies

My oh is about to enter a dmp and has a current account with halifax. he has 1600 overdraft on this account and is near his limit. he wants to keep using this account as it is the rewards account that we get AA travel insuracne and mobile phone insurance wiht (we have claimed on both the travel and used the AA plenty to warrant the monthly cost)
does he need to switch accounts or can he keep this one? he doesnt want to default with Halifax and the od fees are about £30 a month. I plan on paying this off for him over the next few months (as i used it quite a bit last year) so is it mandatory to swap to a basic account when you start a dmp?

katy_ann

When he enters the DMP he needs to get himself a basic bank account with no overdraft or anything special or fancy. This needs to be opened with a bank that he has no other debts linked too. HTH

sickasachip13

Hi

All debts have to go into the DMP, overdrafts included. So this account, unless paid off prior to dmp, will have to go into the dmp and it will, in all likelyhood, defaulted.

SAAC13

rosiesposies

hmmmm. that would add from now, another 6 years plus to default free date.
I think I will take over this account as the house account and pay all the bills from it and pay off the overdraft with my income. Is this possible?
He really doesnt want to have to add another default to his file now since we only have 4 years till they all drop off.

jon1965

So far as I know there is no legal need to include all debts in a dmp. When I entered one, I kept three debts I had an arrangement with. If the OD fees are £30 a month then it seems a tad silly to keep using it, you can surely get those insurances for that.
As for the debts, is DMP the best option, how old are they etc etc . If they are pre april 2007 there is a chance they may be unenforceable and I know a man who can tell you that.

rosiesposies

one of the debts is from 04/2004 but they have produced a credit agreement and there is ppi so will reclaim that (will probably wipe out the majority of the debt.)
the other is from 11/2006 and no idea if they have a credit agreement.
the last is overdraft from joint account that was opened in about 1995-1996 with his ex.
its not the fees are £30 thats his overdraft fees.
would the date these credit agreemnets were taken out be any help? sorry i have no idea of these kinds of things and so far have a relatively clean file myself!

jon1965

Rosie
Just because they have produced a credit agreement means nothing as its pre april 2007. It could still be unenforceable.
On the other one I would send a cca request

I think you could do these yourself if you have the nerve to play them at their own game.