Opening Co-op account whilst owing on overdraft via DMP

beckstar1975

Hello

We currently have a basic bank account with Barclays, but I really would like to transfer to another bank. We owe about £2k in overdraft which we are paying via a DMP (they have accepted and frozen interest).

I spoke to Co-op the other day about something else and they said they would be happy for me to apply for a basic account with them (I would then close the barclays one). They said they would not then take the money for our debt and this could continue with the DMP.

Now - is this so, or would I be a mug to go to them? It would make our life much easier if could be with Co-op

Cheers

Rebecca

dr_adidas01

beckstar1975 wrote: »

Hello

We currently have a basic bank account with Barclays, but I really would like to transfer to another bank. We owe about £2k in overdraft which we are paying via a DMP (they have accepted and frozen interest).

I spoke to Co-op the other day about something else and they said they would be happy for me to apply for a basic account with them (I would then close the barclays one). They said they would not then take the money for our debt and this could continue with the DMP.

Now - is this so, or would I be a mug to go to them? It would make our life much easier if could be with Co-op

Cheers

Rebecca

Ok you don't make it clear whom you owe the £2k to, is it Co-Op?

If its co-op and you open an account with them, they have the right to offset any debt you have with them and take any money owed from any other account you hold with them, even if your on a DMP and paying them via this.

You would be a fool to bank with anyone you have a debt with as they can use the offset rule against any debts you have with them.