Current account switch and DMP

Singlemama

Hi,

Sorry if this is confusing.

I have a bank account with Barclays and a £1500 overdraft which I am fully in.

I’m struggling financially (ex-husband has left me with £30k worth of debt) and have set up a DMP. Barclays have been notified.

I was advised to set up a new bank away from Barclays, have done this and set up the current account switch. The switch date is 23/4/18.

I get paid on 27/4/18, I haven’t had time to notify my employers (they said it takes a month to sort) so what will happen to my £2100 salary on Friday? I need it to pay my rent, childcare and buy food for my two little ones.

(I have major anxiety and depression issues so am really worried about this.)

Thanks for any help

[Deleted User]

It should switch over automatically as far as I am aware.

dave_dph

All payments into your old account will automatically be paid into your new account for 3 years (if I remember correctly). However, you do need to notify your employer (and anyone else paying into your old account) of your new bank details.

18cc

Also double-check all direcr debits have been transferred across OK as some fall between the cracks and the first you know about it is a late-payment penalty

meer53

Salaries are automatically redirected to the new account after the switch has completed. You don't need to contact your employer, thats done as part of the switch.

What will you do about repaying your overdraft with Barclays ? Do you have the same overdraft facility on your new account ?

eDicky

Singlemama wrote: »

I was advised to set up a new bank away from Barclays, have done this and set up the current account switch. The switch date is 23/4/18.

Was this advice for you to switch banks, or just to open an additional account with a different bank?

jonesMUFCforever

I would doubt whether you will have passed the credit score for an overdraft with your new bank.
If the old account is overdrawn then the switch may fail if you do not have sufficient o/d cover on the new one.
The D/D may well go across together with redirection of credits.

However I fear that if the old account is not closed then your salary may well get left in the old account.
Is there anyway you can get your employer to stop the wages going through?

Singlemama

This is what worries me.

I was told to open a different account and to organise a switch.
Repaying the overdraft has come has been added to my DMP and Barclays have been notified. I haven’t passed the credit check to have an overdraft on my new HSBC account and to be honest, I don’t want one.

Barclays told me today that the payment will automatically be sent to HSBC because it’ll be after the switch date, but HSBC have said that it’ll go to Barclays pay off the overdraft and then the remainder will be sent over. I’m so confused!

Singlemama

Edicky, I was advised to open a new account. I!!!8217;m new to dealing with money (at the ripe old age of 35!) because my ex-husband dealt with it all.

jonesMUFCforever

Open a new account - yes - but not switching an overdrawn account with no overdraft facility to make the switch.
Can you stop the switch and get your employer either to give you cash or even a cheque as a one off?

A BACS wage payment to you due on 27th should mean it not being debited to your employer until Wednesday so there may be time to do something.

Singlemama

I’ve already spoken to them and they’ve said that no payroll changes can be processed after the 3rd of the month.

I’m seriously worried. :sad: