Cancelling direct debits before on DMP help

bexbex

Just about to start a DMP and I've cancelled my direct debits. I have a loan with HSBC and I've cancelled the direct debit fine but I had set up a standing order for an over payment of £50 a month and they won't let me cancel it online and want me to phone them. This absolutely terrifies me and I know I won't get the courage to phone them snd just leave it. Will this get stopped anyway as it comes out my account with the overdraft on it.

January2015

bexbex wrote: »

Just about to start a DMP and I've cancelled my direct debits. I have a loan with HSBC and I've cancelled the direct debit fine but I had set up a standing order for an over payment of £50 a month and they won't let me cancel it online and want me to phone them. This absolutely terrifies me and I know I won't get the courage to phone them snd just leave it. Will this get stopped anyway as it comes out my account with the overdraft on it.

I assume you have started a new bank account elsewhere - or at least I hope you have.

I would phone them and explain you are entering a DMP and need to cancel the standing order. They will be fine, honestly. However, if you don't feel you can cope with phoning the bank (and I totally understand why as I have been there myself), then the worst that will happen is they pay the overpayment, which reduces the balance owed on your loan and increases the balance owed on your overdraft. Overall net effect - no change in what's owed, just where it's owed. Hope that makes sense.

All I can say is don't worry about making phone calls to creditors and explaining about your DMP and your financial situation. They are just faceless people who hear this more often than you would think. They have a formal Lending Code to adhere to and the minute you state you are entering a DMP they suspend contact, collection, and charges for 30 days. They really will be okay with you and if you can face phoning them you will feel a massive relief when you put the phone down because you know you won't be worrying about contact from them whilst the DMP is being set up.

There is a massive mutual support group for people on DMPs. Pop over and say hello and they are a mine of information. We've all been there, done that, and are aiming to get the T-shirt eventually :rotfl:

sourcrates

Good advice from January above, there are many hundreds of thousands of people in similar situations to yourself, creditors, or should i say call center staff, deal with these situations every day.

You simply ring up, say your entering a debt management plan, they will ask you a few questions like, have you rung one of the debt charities, to which you say yes, i contacted stepchange.

They will say fine, and advise you not to use a company that charges you for this service, they will then cancel the standing order for you, then ask if there is anything else they can do for you ?, you politely decline, say thank you very much, and hang up, four mins tops !!!!

CP2016

Hi Bexbex, if you really can't bring yourself to call them use the private messaging system from within online banking. I was terrified too and I didn't talk to my creditors for a long time, when I did I realised that as January and sourcrates say - there's nothing to worry about.