NatWest DMP

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PM22
PM22 Posts: 212 Forumite
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in Debt-free wannabe
I have set up a DMP with PayPlan.
Meanwhile, NatWest have decided to pull my overdraft - a measly £250
They are sending me letters, text and scary emails

Do I allow this to upset me or do I just go with the dmp and accept that they are getting their 
token payment of `£1 until January

By withdrawing my overdraft, does that put me in any worse position or not really?
I'm trying not to get stressed...

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  • Grumpelstiltskin
    Grumpelstiltskin Posts: 4,304 Forumite
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    Why have you not opened a basic account with a bank you don't owe any money to? this is always the first suggestion when starting a DMP
    If you go down to the woods today you better not go alone.
  • PM22
    PM22 Posts: 212 Forumite
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    I have! 

    But my question is why have NatWest pulled the overdraft on my old account? 
  • RAS
    RAS Posts: 32,759 Forumite
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    Because you are not allowed any further credit. You might not think of it as a loan, but essentially an OD is a right to a short-term loan.
    The person who has not made a mistake, has made nothing
  • PM22
    PM22 Posts: 212 Forumite
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    But it was at the limit so I couldn't have borrowed any more!
  • Rob5342
    Rob5342 Posts: 1,521 Forumite
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    It's in the terms and conditions that they can ask you to repay it on demand, only they will know why they want their money back.

    Just get a seperate account without an overdraft facility for your day to day banking and add the overdraft to your dmp.
  • sourcrates
    sourcrates Posts: 28,968 Ambassador
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    By entering debt management, you are essentially saying you are unable to meet your current credit commitments, so by definition, your bank must show that it is acting responsibly, and they are demonstrating this by withdrawal of your overdraft facility, so you cannot use it in the future, standard procedure for anyone entering debt management.
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  • PM22
    PM22 Posts: 212 Forumite
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    Great…I don’t need to worry that they’re just being heavy handed with me then. What you say makes sense. Thank you 
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