New DMP’ers and bank account switching service

Scarlet_to_Black

Just for anyone in the process of setting up a new DMP who might need to close bank account with creditor and open a new basic account, follow the advice from the oracles on here and do it manually - DO NOT USE SWITCHING SERVICE!  I wish I’d read this advice before I pressed submit! 

I’ve had an absolute nightmare for the last ten days with NatWest sending DD requests through to my new bank on a daily, repeating loop. 

I was daft and thought if I cancelled all the DD’s with NW on 20 January, only the active DDs would pull through on 28/01/25, leaving just my mortgage account DD. Well, I’ve had to contact my new bank DAILY to cancel the NW DDs that keep appearing. Two of the loans have been claimed by NW amd I’ve had to put a recall on both payments. On each call I’ve asked my new bank to cancel all DDs and they oblige and they disappear from my list…I log on the next day and at least one DD reappears 😤

To stop this endless loop of pain, my new bank have put a block on NW sending any more DD requests, I will have to arrange for block to be removed if I wish to DD with them in the future. 

I’ve set up a standing order for my mortgage or will pay it manually. I feel harassed and stalked by NW 🤣😜 and feel like I need an injunction…

ManyWays

Cancelling a DD does not cancel the obligation to pay. Have you told Natwest you do not want to pay it? 

Scarlet_to_Black

Hmmm, no, but only because I thought the idea was not to contact creditors! Maybe I’ve got that wrong?!  I’m in Breathing Space until 18 March and first DD with StepChange is 1 April. 

Should I contact NW then? 😱

EssexHebridean

Backtrack a minute - you understand that if you go straight from the breathing space to the DMP you’ll not get defaults on these accounts, but instead you’ll get arrangement to pay markers which take a lot longer to clear your credit file?

Scarlet_to_Black

I do…however, I did have a previous DMP with StepChange 11 years ago when I was going through a divorce.  I had five creditors and all five defaulted me within six months. I went straight into a DMP, from all payments being up to date. I sold my house (the marital home) a few years after my divorce and four years into the DMP and StepChange arranged my mortgage. I had to do F&F settlements before the mortgage company would release the money for the mortgage, which my dad lent me and I paid him back from the equity.  All defaults were off my credit file by 2021. 

What I’m trying to say is SC were a lifesaver for me back then and my anxiety and overthinking could not handle just not paying and waiting for defaults first. So I’m hoping the same thing will happen with the defaults, as payments for my debts is only £275 a month.  If some are AP markers and take longer then at least I won’t have access to credit for longer 🫣 

EssexHebridean

Yep - mental health is a valid reason for going straight into it - and as long as you are aware of the risks and alternatives then if that decision is right for you then all good, we always like to make things really clear though to ensure that people are fully aware. Stepchange are a great organisation, but one area where they DO fall down is that in that specific area they don’t really act in the best interest of the debtor by fully advising them of the increased impact on credit files of heading straight in! 

Also an excellent point on the no access to credit thing, although that too can be a double edged sword. 

Scarlet_to_Black

Thank you for your very balanced reply. The only thing I’m twitchy about is my mortgage with my main creditor but hoping I can just rate switch with NW in summer 2026.  

ManyWays

Natwest wont check for affordability or your credit rating if you only want a new fix from them next year. 

RAS

There's some posters here who have renewed their fix with their existing provider twice since they started their DMP. No credit check, no problem. 

We've had to dis-encourage a few going back to mortgage advisors to look for other providers who offer impaired credit options.