Entering DMP- New bank account Question

Keralina

Hi guys,

I'm new to the forum and also new to the joint DMP my partner and I are on with Stepchange.
Basically one of my creditors has been Nationwide... (Credit card, loan, overdraft) and due to the overdraft with them Stepchange have told me to open a new basic bank account with a completely separate bank.

My question is- with me being on a DMP and repaying Nationwide's overdraft will I be able to use the switch service (I.e.: with Halifax) in order to receive the £100 reward for switching... (In time for Xmas shopping)

Or is what I will have to do classed as closing an account and opening a brand new one... as opposed to a direct switch.

Or are they the same thing???!!

Having a bit of an information overload with this new debt-free venture so any advice would be massively appreciated!!!

Thanks

Dobbibill

Hi Keralina,

I don't think it will be possible........

To qualify for the £100 switching offer ("the offer") you must use the 'Current Account Switch Service' and meet the following conditions:

Use the 'Current Account Switch Service' to transfer all the active credits and debits from the bank account that you hold with another bank and close this account.

I copied this from here http://www.halifax.co.uk/bankaccounts/

If you are on a DMP with Nationwide paying off an overdraft then I don't think you will be able to close the account until it is no longer in debit meaning you would be unable to use the switching service.

I may be wrong but this is how I would read it, hopefully someone will come along who has experience of this to advise.

Good luck with the DMP

DB

Puzzcat

Hi,
It wouldn't be advisable to use a switch service as you don't want your dd's for creditors being transferred to your new safe bank. I agree with the above poster as the current account at nationwide will not be closed until the overdraft is settled, sorry.
Puzz

Monkeyballs

Also, Halifax aren't willing to offer anyone on a DMP a current account... Trust me, I tried LOL

MB x

badatmaths

Yes Keralina, like other posters have mentioned you do not want to transfer all the Direct Debits to a new account, (also it won't be wise as all your bills would start going out leaving you with little left like the old one).

Also I don't think you would be eligible for it, I am afraid.

I had an overdraft with my old bank and also got into Debt Management. I had this bright idea of going to Halifax for £100. They ran a credit check there and then and all my secrets were revealed I was politely told come back when it has been sorted. (and I thought why would I come back to you when I have more money, when you won't let me open a bank account now ) That guy didn't even let me open the basic one, his words "Basic account is for kids, you won't be able to set up direct debits or make any payments using your bank card."

Anyway good luck with your DMP journey.

racht

Hi
I had an overdraft, credit cards etc with Nationwide also and used the switching service when I opened my Co-operative bank account to get the £100. However each payment Stepchange make to my overdraft gets paid back to me!!!
After numerous calls to Nationwide they have given me different account numbers to make the payment to- I have tried to give these details to Stepchange but they say I need to get Nationwide to issue me with new account details- I cant afford to phone Nationwide at moment so as soon as payment goes back into my account I myself pay it back to Nationwide- was nice to get the free £100 but is a nuisance.
Also watch out if you have online banking with Nationwide as my main current account was stopped online so had to make phone calls to get it all back but I can only see my credit card now. Nationwide have been really good though to deal with

sourcrates

These offers only apply to current account transfers,
you need a basic account, so you wont qualify unfortunately.
Banks only make these offers if they think your going to make money for the bank, through debt interest, charges etc
Basic accounts don't have OD facilities, hence you will not earn them any money.

Keralina

Thank you so much for all the replies everyone. I'm not very good at all this (To the point that for some reason I assumed one person was only ever allowed one bank account EVER) lol. So I've been confused as to how my account could be frozen and have another one.. but I get it now...
Thanks again

Sazzie23

Keralina wrote: »

Thank you so much for all the replies everyone. I'm not very good at all this (To the point that for some reason I assumed one person was only ever allowed one bank account EVER) lol. So I've been confused as to how my account could be frozen and have another one.. but I get it now...
Thanks again

Its all a learning process - did you say you are going onto a DMP?

Why not join us on the DMP support thread - loads of advice and support over there too