right to offset - is it a problem???

startingtogetoutofdebt

I've set up a DMP and its due to start on 1 October. When I was reading through the information sent to me by CCCS I came across a bit about a banks right to offset. Although I thought that I was ok with none of my debts being with my bank I thought I'd double check.

After spending some time on the internet I've found that my main creditor is actually owned by the company that owns the company I bank with. I assume this means that they would have the right to dip into my bank account to take any shortfall in payments.

Before I start transferring my banking to another bank account I have which I was about to close can anyone advise me on whether this is a problem people have experienced and how likely is it that if a company agrees to a DMP arrangement that they will then start taking money out of my bank account.

After finally starting to relax that everything was on track to get sorted I've had another sleepless night and any comments about this would be gratefully received!

fermi

More info on the main site article here ---> Setting Off Rules: DON'T bank where you’ve got debts

Not usually a straight forward answer to this.

Personally, if it was me then I would be inclined to pay it extra safe and open a new account that I know for sure is unconnected.

You could well be OK with your current account, but if you are not, and rightly or wrongly your bank empties your current account, then that is an enormous problem and hassle. Not only would is mess up you other bills, debt payments, your daily living etc; it could take some time to sort out if you end up having to take complaints to the FOS to get it reversed (if you even can).

fatbelly

The major groups are here:

http://www.fsa.gov.uk/consumerinformation/uk_groups

There's also the question of them being able to view your income/expenditure so if in doubt, play safe.