DMP mutual support thread part 13 !!

Lou2010

Bank Account Help!!
I've just started the process of getting ready to start a DMP and opened a new bank account with Halifax.
I'm now not sure if they are linked with MBNA and could use the right to off set Halifax against MBNA??
Can anyone help? My list of creditors are below, any recommendations for bank accounts would be helpful if Halifax is not suitable?

Barclaycard
MBNA Credit Card x 2
Aqua credit card
Newday credit cards x 2
Ratesetter
Creation
Zopa
Argos store card
Post Office
Tesco credit card

Thanks

sourcrates

Lou2010 wrote: »

Bank Account Help!!
I've just started the process of getting ready to start a DMP and opened a new bank account with Halifax.
I'm now not sure if they are linked with MBNA and could use the right to off set Halifax against MBNA??
Can anyone help? My list of creditors are below, any recommendations for bank accounts would be helpful if Halifax is not suitable?

Barclaycard
MBNA Credit Card x 2
Aqua credit card
Newday credit cards x 2
Ratesetter
Creation
Zopa
Argos store card
Post Office
Tesco credit card

Thanks

Hi,

They are currently separate companies, but, they are both owned by Lloyd’s banking group.
You can try Nationwide or the Coop for banking services.

Lou2010

Thank you. So if they are separate companies can they not use the right to offset? I am just paranoid as have my wages due to go in on 5th July now!

Willing2Learn

Lou2010 wrote: »

Thank you. So if they are separate companies can they not use the right to offset? I am just paranoid as have my wages due to go in on 5th July now!

If it were me, I would open a current account with Nationwide or Co-Op as they are both fully independent and it would ring-fence your income.

Since Lloyds Banking Group own both MBNA and the Halifax, there would be a risk of offset being applied.

SkintDad87

Morning all

Still in process of setting up DMP self managed. Most creditors have defaulted me, and all are aware payments start in October...so going ok!

The other half still has no idea about DMP or level of debt and it's all solely in my name, and so far it's been fine...but realised Lloyd's and Halifax are owned by same company. I have 2 loans, overdraft and credit card with Halifax, and we have a joint account with Lloyd's which is used for household bills. We both pay £800 in, rent is then paid same day we transfer it in, and leaves around £600 for food and bills, all bills come out first week of the month, rent comes out 28th each month.

Question is...what are the chances of Halifax trying to offset against this lloyds account?...fear this may be my downfall 😭

Cheers
X

Willing2Learn

SkintDad87 wrote: »

… The other half still has no idea about DMP or level of debt and it's all solely in my name, and so far it's been fine...but realised Lloyd's and Halifax are owned by same company. I have 2 loans, overdraft and credit card with Halifax, and we have a joint account with Lloyd's which is used for household bills. We both pay £800 in, rent is then paid same day we transfer it in, and leaves around £600 for food and bills, all bills come out first week of the month, rent comes out 28th each month.

Question is...what are the chances of Halifax trying to offset against this lloyds account?

Oh no...you need to be upfront with your partner as everything may unravel if you don't.

My recommendation is that you remove your name from the joint account, so that it becomes a sole account in your partner's name only. If you do not do this, then because you are financially linked, your debt accounts will impact negatively on your partner's credit file. That is in addition to a potential offset of debt.

If your joint account becomes a sole account in your partner's name only, you will still be able to make the £800 transfer into the account, so that you will still be sharing bills etc

Edit: If you remove yourself from the joint account, you may find that you also have to file a Notice of Disassociation with the three CRAs to fully untangle yourselves.

Edit #2: For anyone reading this post, the information above is not correct. Apparently the right of offset cannot be used to transfer money from a joint account to a sole account.

SkintDad87

Just went through step change and the financial rules of offset state...

Right of set-off CAN be used to transfer money:

From your sole bank account to debt in your name only
From your sole bank account to a debt you have jointly with another person
From your joint bank account to a joint debt, as long as the same two people are named on each


But right of set-off can’t be used to transfer money:

-From your joint account to a sole debt in your name
From your joint account to another joint account you have with a different person

Cheesephetamine

Hi! new to the website and to the forum. I have been advised to come and post here by someone in facebook from the YNAB UK group

I have decided to start a DMP with StepChange. I just got all the paperwork in the email today,
My total debt is shy of 38.000 GBP (a full year salary!) and with the budget they have given me I would be paying 562 a month which is already feeling like such a relieve compared to the 900+ i was paying now.
I have 9 debtors one being my current bank (natwest) with whom I have an overdraft and two personal loans.
I have managed to open an online basic account with barclays to move my income and direct debits there. I have a joint acount in natwest with my husband from which we pay the rent and house bills. He does not know of my debts and i want it to carry this way. The DMP will not affect the joint account I have which has no overdraft and all bills get paid right?
Anything else I should be doing?

By the way I have a personal blog about my finance journey (shameless plug): its debtoranonymous dot wordpress dot com

Broke_Bear

Hi all,

I had my LBM in august ish last year and have been trying to throw as much as I can at my debt (known as the BSN or Big Scary Number to me and OH), however the payments are just under half of my salary and it is not working as I have to use the card to get to the end of each month!. I have contacted Step Change yesterday and have been recommended to do a DMP. At the moment I have no reserve or emergency fund and will be going to sort out a new bank account on Saturday. I have never missed a payment and would like to know do I tell the creditors i am going to make token payments for next 2 months or just cancel DD and make token payment giving me time to get new bank set up and wages going in plus build up my EF? Also I need to complete paperwork for SC and return it, how do I arrange for a suitable start date? This has me really worried but not as much as having a debt which is approx 18 months worth of salary in total :eek: so I know it is the right plan.

all advice gratefully received

EDIT: for clarity this is MY debt not OH's and he is being very supportive with this plan of action to get the BSN gone for good.

Willing2Learn

Cheesephetamine wrote: »

… I have decided to start a DMP with StepChange. I just got all the paperwork in the email today,
My total debt is shy of 38.000 GBP (a full year salary!) and with the budget they have given me I would be paying 562 a month which is already feeling like such a relieve compared to the 900+ i was paying now.
I have 9 debtors one being my current bank (natwest) with whom I have an overdraft and two personal loans.
I have managed to open an online basic account with barclays to move my income and direct debits there. I have a joint acount in natwest with my husband from which we pay the rent and house bills. He does not know of my debts and i want it to carry this way. The DMP will not affect the joint account I have which has no overdraft and all bills get paid right?...

Hi and welcome to the forum

Two things:

• We recommend that everyone delays the start date of their DMP by 3-6 months, so that you have the breathing space to build an Emergency Fund (EF). This is because an EF is a vital component of any successful monthly budget.
• With the joint account. Your husbands credit file will be negatively impacted due to the financial association between the two of you. Solution: Remove your name from the joint account so that it becomes a sole account in your husbands name only.

Broke_Bear wrote: »

… At the moment I have no reserve or emergency fund and will be going to sort out a new bank account on Saturday. I have never missed a payment and would like to know do I tell the creditors i am going to make token payments for next 2 months or just cancel DD and make token payment giving me time to get new bank set up and wages going in plus build up my EF? Also I need to complete paperwork for SC and return it, how do I arrange for a suitable start date?...

I suggest you delay returning your paperwork to SC for 3-6 months, to allow yourself time to build a sizeable EF. You can write to your creditors, explaining that you will only be making token payments for the first 3 or 6 months and that you plan to start your DMP and full payment plan in either xx September or xx December. That way you will be keeping your creditors 'in the loop'.

Make sure your new bank account is not with any banking group with whom you have outstanding debts.