Adding a signatory with a DMP

M_CP

Hi all,

I have recently been asked to become on of the signatory on the bank account of the organisation I work as I’ll need to approve payments and review bank balances on a daily basis.

I have a debt management plan and a very poor credit rating. I am pretty terrified now that I am going to lose my job because I won’t be able to be added.

Can anyone advise? Would be much appreciated as I am sick with anxiety over this!

Thanks in advance! 

Devongardener

Will you actually be a signatory?  Your company can give you online access to view the bank account and approve payments with needing credit checks by the bank.  

M_CP

Devongardener said:

Will you actually be a signatory?  Your company can give you online access to view the bank account and approve payments with needing credit checks by the bank.  

I believe so, that’s what my manager said 

elsien

Is this a new role, or had someone decided to extend your current one with extra responsibilities? 

M_CP

elsien said:

Is this a new role, or had someone decided to extend your current one with extra responsibilities? 

This is a new role. I started there not long ago. I didn’t even cross my mind that this would be something that I needed to do 🤦🏻‍♀️

MattMattMattUK

M_CP said:

elsien said:

Is this a new role, or had someone decided to extend your current one with extra responsibilities? 

This is a new role. I started there not long ago. I didn’t even cross my mind that this would be something that I needed to do 🤦🏻‍♀️

Was it in the job description? Tell your boss about the DMP, let them know your situation as it would come up during a credit check which the bank will do when adding you as a signatory. They are far more likely to look to make accommodations for this if you are upfront about it, rather than them finding out for themselves. 

Devongardener

M_CP said:

Devongardener said:

Will you actually be a signatory?  Your company can give you online access to view the bank account and approve payments with needing credit checks by the bank.  

I believe so, that’s what my manager said 

I’d be inclined to get clarification from your manager,  it’s unusual to have a legal signatory who has only been employed for a short while.  Signatories are generally owners and or directors.    

M_CP

Devongardener said:

M_CP said:

Devongardener said:

Will you actually be a signatory?  Your company can give you online access to view the bank account and approve payments with needing credit checks by the bank.  

I believe so, that’s what my manager said 

I’d be inclined to get clarification from your manager,  it’s unusual to have a legal signatory who has only been employed for a short while.  Signatories are generally owners and or directors.    

So the organisation is a charity so I don’t know if that makes any difference. I work for the finance department and I’ll need access to the bank to approve payments that junior members of staff process. In my last role, I was added to the bank as a user that wasn’t a problem (it was hsbc) so it didn’t even cross my mind that it would be a problem. Now I’m so stressed that I’ll lose my job 😕 I was made redundant whilst on maternity 2 years ago, this made me seek help through a DMP. I still got about a year left of my DMP before it’s over

1stTimer

M_CP said:

Devongardener said:

M_CP said:

Devongardener said:

Will you actually be a signatory?  Your company can give you online access to view the bank account and approve payments with needing credit checks by the bank.  

I believe so, that’s what my manager said 

I’d be inclined to get clarification from your manager,  it’s unusual to have a legal signatory who has only been employed for a short while.  Signatories are generally owners and or directors.    

So the organisation is a charity so I don’t know if that makes any difference. I work for the finance department and I’ll need access to the bank to approve payments that junior members of staff process. In my last role, I was added to the bank as a user that wasn’t a problem (it was hsbc) so it didn’t even cross my mind that it would be a problem. Now I’m so stressed that I’ll lose my job 😕 I was made redundant whilst on maternity 2 years ago, this made me seek help through a DMP. I still got about a year left of my DMP before it’s over

Unfortunately a DMP stays on the record for 6 years even if you pay it off before then.

youre best bet is to be open with them now, was this explained to you at all during the interview stage etc?

Jude57

1stTimer said:

M_CP said:

Devongardener said:

M_CP said:

Devongardener said:

Will you actually be a signatory?  Your company can give you online access to view the bank account and approve payments with needing credit checks by the bank.  

I believe so, that’s what my manager said 

I’d be inclined to get clarification from your manager,  it’s unusual to have a legal signatory who has only been employed for a short while.  Signatories are generally owners and or directors.    

So the organisation is a charity so I don’t know if that makes any difference. I work for the finance department and I’ll need access to the bank to approve payments that junior members of staff process. In my last role, I was added to the bank as a user that wasn’t a problem (it was hsbc) so it didn’t even cross my mind that it would be a problem. Now I’m so stressed that I’ll lose my job 😕 I was made redundant whilst on maternity 2 years ago, this made me seek help through a DMP. I still got about a year left of my DMP before it’s over

Unfortunately a DMP stays on the record for 6 years even if you pay it off before then.

youre best bet is to be open with them now, was this explained to you at all during the interview stage etc?

No, it doesn't. A DMP is an informal agreement between debtor at creditor to repay debts at an affordable rate over a period of time. If a debtor has received an official debt marker such as a default, that will stay in the debtor's credit record for six years from the date of issue as is the case with formal debt solutions such as Bankruptcy, DROs and IVAs. With a DMP, depending on the length of it and the monthly amount being repaid, a debtor can even get to the point where their repayments are in excess of minimum payments for credit cards and can begin to rebuild their credit rating even before the DMP is completed. So if a DMP lasts, say 8 years, by the last two years, if the debtor hasn't taken on any additional debt, they would have a spotless record for credit purposes.

To the OP, be honest with your employer. Tell them that you experienced a credit shock when you were unexpectedly made redundant and took the responsibility of addressing your debts by seeking professional support (hopefully from StepChange or another free provider) and have maintained your regular DMP payments ever since. Tell them you are within just a year of being debt free. I'd hope, as a charity, they'll understand that we all sometimes need help and that it shows determination on your part to deal with your debts properly.

elsien

I was wondering about the interview stage, because if this was such an integral part of the job you have expected it to come up during the recruitment process.