New Bank Account with DMP

rainyday444

If someone was considering starting a DMP is there any situation where they would be able to open a new bank account with their current bank, even if they owe money to that bank, without the bank being able to use those funds for the debt on the other account?

fatbelly

No - the right of set-off always applies.

And why would you want to do this anyway? Best your present bank does not even know about your ins and outs, and there are other banks ready to give you cash to join them!

Fidelia

fatbelly said:

No - the right of set-off always applies.

And why would you want to do this anyway? Best your present bank does not even know about your ins and outs, and there are other banks ready to give you cash to join them!

I know there are several banks paying 'incentive' amounts for opening accounts with them/switching but I understood this was for 'regular' accounts.  When I started on a DMP (now thankfully over and I'm debt-free) I was only able to get a 'basic' account as a new customer with another bank, certainly no cash to join them!

rainyday444

Thank you for your replies! That's what I thought, when I had my DMP I had to open an account with a different bank in a different banking group. Very basic account! 
I'm trying to work out why someone has opened an account in the same bank that she owes money too when the last conversation we had was that she was getting a dmp. 

sourcrates

rainyday444 said:

I'm trying to work out why someone has opened an account in the same bank that she owes money too when the last conversation we had was that she was getting a dmp. 

Most likely because they are unaware of the set-off rules, and have mis-understood advice.

rainyday444

That's what concerns me...some comments have already been made but as she had "official" advise (I think from the dmp management company but she is being very sketchy) anything I say is ignored. But equally she isn't telling me everything, she doesn't have to obviously but she did come to me to talk about things when she first thought about it as she knew I had been through similar. My dmp was some years ago and so I know some of the stuff I did know is out of date so I have been very careful but the bank account seemed odd.
Thank you!

sourcrates

Sounds to me like she`s using a fee charging DMC as well, she should be using one of the free debt charities in my signature.

All they are interested in is getting their monthly fee off her, best advise for her situation comes a lowly second with such people.