Payplan - Direct Debit letter

bcah

Hi everyone,

This is my first post on the forum so please accept my apologies if I'm not doing this properly!

I would really welcome some advice on a DMP that I have with Payplan which has been running without a hitch for the past 7-8 years. I received a letter from Payplan this week telling me that they are closing the bank account that I make payments into via Standing Order and that they require me to sign a Direct Debit order to make my regular payments into a new bank account that they have opened. They say that they are no longer promoting the use of standing orders and they give me no choice of whether I want to make payments via standing order or direct debit, I am just expected to give permission. There are no new bank account details anywhere in the letter.

I have a problem with giving Payplan permission to debit my bank account without any input from me - this worries me and I immediately start thinking of scenarios where they debit whatever money they feel like, leaving me high and dry. As far as I was aware, there is no legal requirement for me to give my permission to them or any other organisation to take direct debits from my account - especially when I pay by standing order every month without fail.

Please can anyone give me any advice on this? Do I have to give direct debit authorisation? I'm worried that as they are closing the account I pay money into, this could lead to a disruption in my payments to my creditors. I have tried contacting Payplan by email (Monday) but have had no response. I will call them this evening if I don't hear from them.

Thanks in advance.

Bryonie

Meatloaf1981

My advice would be to call them and politely ask for the new bank account details so that you can amend your standing order. Just advise them you are not prepared to sign a direct debit mandate at present.

I did this with all of my creditors when I went "solo" on my DMP.

glentoran99

yep what he said, no need to set up direct debit, everything i possibly can is set with standing order rather than direct debit, Its my money its up to me who i pay not what they take

bcah

Thanks very much Meatloaf1981 and glentoran99.

Yes, it is up to me how much money goes out of my bank account and when and, even though Payplan have been reasonably good over the years, I don't think I'm prepared to give them free reign! I have visions of them clearing me out!!

I think that when one is in debt it is easy to feel subservient and do whatever one is told because it suits a creditor or debt management organistaion such as Payplan.

Thanks for your support, much appreciated

bcah

Meatloaf1981 wrote: »

My advice would be to call them and politely ask for the new bank account details so that you can amend your standing order. Just advise them you are not prepared to sign a direct debit mandate at present.

I did this with all of my creditors when I went "solo" on my DMP.

Ps Meatloaf1981 how are you getting on with going 'solo'? I've often been tempted to do the same.

sourcrates

bcah wrote: »

Ps Meatloaf1981 how are you getting on with going 'solo'? I've often been tempted to do the same.

The only difference will be instead of making one payment to Payplan, you make individual payments to your creditors.
You take the role Payplan have played, you keep your creditors informed about your income/expenditure, every six months or so, and ensure you pay on time, that's it.
Anyone can do it, beggars belief some people pay private companies to do this for them, although Payplan and stepchange don't charge for there service, they decide when and where your money goes, going solo, you make those decisions instead.

Meatloaf1981

bcah wrote: »

Ps Meatloaf1981 how are you getting on with going 'solo'? I've often been tempted to do the same.

Oops, very sorry I didn't see you response! Please do call me Meat

And I'm doing very well. I have a huge debt as you can see in my sig, but it goes down every month by £200 at present and I am just grateful it is going down and all interest has been frozen. Going "solo" is probably a misnomer in a way. I used a third party to do all my negotiating on my behalf, but manage the payments direct to my creditors from my account without going through the same said third party