Banks right to take money????

LMJ10

Just wondering -

I have set up my basic account which I am using however I still have my old account open I don't use it but - after the creditor agrees the dmp do they still take money out from your account if you are in debt with them? I hope they just leave u be and let you make the payments

Has anyone had their bank take money to clear the arrears?

Tixy

The new basic account is with a different bank is it? One that you do not owe any money to?

The old account you don't use - does this have a nil balance? or an overdrawn balance or a positive balance?

LMJ10

I've done it all right

Just a general question and wondering if anyone has had any money taken?

Tixy

From your new account with a seperate bank then no creditor will be able to take funds from you.

If you have left money in an old account and owe money to that bank then yes banks frequently will offset the funds. It has happened to lots of people who have posted on her (both those in DMPs and people who are not).

LMJ10

Ohh!!! I do have some money being sent back to that acct hopefully they haven't applied it yet
and I can take it out.

Do they inform u off this in a letter?

Tixy

They don't need to write to inform you no.

You do need to be in arrears on an account before they would do this.
If you are only just starting your DMP then are you actually in arrears to that creditor yet? have you missed any payments?

Obviously in an ideal situation you wouldn't pay any funds in to the account, it may be that you will have time to withdraw/online transfer them to your new account. But I wouldn't count on being able to.

If you need the funds for a priority item then you could write to the creditor to establish your first right of appropriation for the funds.
Starting template letter here = https://www.nationaldebtline.org/EW/sampleletters/sole-letters/Pages/Ask%20your%20bank%20to%20pay%20particular%20bills%20out%20of%20your%20account%20(sole%20name).aspx

LMJ10

Thank u for the template

I am in arrears but haven't received any default notices from them yet they know I'm in a dmp. I take it they would only take the arrears owed not the full amount?

Do they set up a automatic transfer out of my acct or do they have to physically go into it? Say on my payday?