new account for dmp

catcressa

Do you have to open a new account when you start a debt management plan

yellowmonkey

Hi

Always advisable and try to choose an account that has no association to your creditors. That way if your bank is one of your creditors they cannot get to your money.

ym

bowz25

Hi
i opened a co-operative bank account online. It only took a week to open and so far has been good. I have just a switch card with the account and no overdraft of course.
The only downside is the nearest branch is is a bus ride away if i have to go into the branch,however they offer online banking as well.
I know others have also opened with co-operative as well but some other people might be able to offer other ideas for accounts.

hope this helps

catcressa

Thanks did not realise you had to open a new bank account when starting a dmp, as my credit rating is affected will this not affect opening a new account.

trying-very-trying

You should be able to open a basic account with most of the banks without a credit search, as long as it has no overdraft facility. Just take note of yellowmonkeys warning above.

fermi

A table of the basic bank accounts available and the facilities they offer has been compiled by the Financial Services Authority.

It can be viewed on page 4 of the following document:

http://www.moneymadeclear.fsa.gov.uk/pdfs/bank_accounts.pdf

A list of linked banks and collection agencies can also be found at:

http://www.payplan.com/debt-library/miscellaneous.php

redfaced

You can pay in and withdraw cash/cheques at the post office if you have a co-op account, this was one of the reasons why we opted to apply for their basic bank account. i applied by phone and explained that we were on the verge of a dmp and the guy i spoke to said that this account was set up for people in our position or those entering into bankruptcy/iva. it did take almost 2 weeks from application to completion, apparently they have a backlog at the moment. hope this helps

sira_2

Hi, if its any help ive recently opened an Alliance & Leicester bank account over the phone. Its a basic account with a debit card, cheque book (not many do a cheque book also), no overdraft & a savings account to run along side it (bit of a joke, what is savings!!!) Very happy with the account & the staff are lovely! I have a poor credit rating, cant remember if they did a check but i know they do an account where they dont, also doing it over the phone is less embarrassing if you're refused!!

Weemac

Where did you phone to open the A&L account sira and what is the name of the account as the accounts on their website all have overdrafts and i don't want one just a basic account to run with my DMP?

katierose

My oh got basic card from A&L through quidco and got £25 cashback as well.

sira_2

Hi Weemac, i rang them using the phone number on their website explained i wanted the very basic account they said about opening one of their premier accounts but i explained if they credit scored me it wouldnt be great not because i had any defaults, CCJ's etc but because of the amount of debt i had. He said let me try and open this basic account with cheque book, debit card etc.. & see if it goes through which it did. If he credit scored me, which i think he did, obviously they were happy where other banks werent even for their basic accounts. He even said provided i keep the account running smoothly over the next 6mths they may consider moving it to one of their premier accounts. I have just checked all my paper work and its just called a current account. I dont have an overdraft facility but have to say the cheque book is a handy bonus. Hope this helps.