About to start DMP

continualdiamond

After thoughts please, i am really scared, about to enter into a DMP and the 1st task is cancelling DD.

Payplan have assisted me with everything, been really great. Was shocked when they sent me printed letters they had done for all of my creditors, as well as an expenditure sheet etc.

Im really nervous about cancelling my DD, i know it has to be done. However one of them is directly linked to my bank (loan), will they take money out of my account to cover it?

Payplan have informed me banks have the right to take money out to cover debts. Im in the process of having everything switched to a basic bank accout, but was told i need to cancel debt DD as i don't want them switched to my new bank account.

However im a bit confused when it comes to my loan with my current bank, as if i cancel the DD then they'll know something is wrong. Yet i was told by payplan to not send letters to my bank telling them my situtation until everything was switched to a new bank account and most importantly my salary. So what should i do???

RAS

Hi

If you are going to set up a DMP that includes your bank, it may be wise to set up another bank account elsewhere (unrelated), so that you have control over your income and can ensure that the money is there to cover the DMP rather than being taken to pay the loan.

Get this set up and your salary etc paid in before you cancel the old DDs if possibleand set up the new DD to pay the DMP.

bowz25

Hi
i cancelled my direct debits on line (not sure if you can do this however ) i opened i new account within a week so it was quite quick anyway
not sure if this helps but i opened with co-ooperative bank online a current account with debit card and it has been great.
I did get one call from my bank to say direct debit cancelled asking if this was an error, but by that time that letter came i had opened new bank account and advised my employer of new bank account to pay to.

I had been with my bank for 20 years as well i did feel upset a first but it had to be done. I have paid 2 dmp payments so far with cccs.
You do have to make sure that the new bank account has no connections with any of your creditors i chose co-op bank for that reason.
hope you get it sorted, it is difficult at first sorting everthing out. i have folders with all paperwork in for each creditor so when they call i have it all to hand. (sounds a bit sad i know but at least i know where i am)
take care
bye for now

continualdiamond

Thanks for the info. Yes i am in the process of opening a basic bank account with Natwest, payplan sent me a list of connected banks and going with that Natwest has no connections with Lloydstsb, my current bank.

Just got to send off documents to prove income etc and my Natwest account will be open.

Thanks bowz25, you have helped a lot, because like you i can cancel my direct debits online, but i was scared 2 incase opening my Natwest account took longer, but a week or 2 is really good.