Dmp. New bank account?

Little_em_2

Hi, I am new to this so I apologise if this has been mentioned and I have missed it or I am in the wrong place.

I am thinking about entering a dmp with payplan to help with payday loan debts. My query is if I start a dmp will the companies try and take money still on payday?

I have read that it is best to open a new bank account but as my debt is not with the bank am I going to have problems with the CPA payday loans use?

Thank you in advance

nicp60

I would definitely set up a new bank account as well as writing to your current bank and withdrawing the CPA for whichever payday loan companies you have used.

They have been known to try and take payments for literally months after a payment plan has been set up.

I didn't understand your last question - what do you mean by having problems with the CPA?

Little_em_2

I was worried about the payday loan companies swiping at my account even if an agreement is in place. I probably worded it wrong

Little_em_2

Thank you for your reply.

nicp60

Ah, I see. Yes they probably will try and take the money. You must write to your bank immediately and withdraw the CPA. Then you should open a second account at an unrelated bank - preferably a basic bank account that they don't credit check for.

Little_em_2

Would swapping an account in same bank work? Think I have been slightly naive thinking this was going to be quick and painless.

nicp60

Little_em wrote: »

Would swapping an account in same bank work? Think I have been slightly naive thinking this was going to be quick and painless.

I'm not sure actually. Technically I suppose it would work, but I wouldn't want to risk it. Also would the bank ask questions about why you need another account, and would they credit check? Some banks will refuse you on the grounds of having pay day loans on your file.

Unfortunately it seems that nothing is simple when dealing with payday loan companies!

Little_em_2

I have a natwest basic and have requested a select one online which seemed to go thro no problem..it is a totally different account number but now worried that they will still get my wage.. New bank it is. Thank you

Deep_In_Debt

I second opening a new account with a totally unrelated bank as I'm not sure whether they could still have access to your money so best to be safe I guess.