DMP Mutual Support Thread (Part 4)

Jvic28

TotallyBrassic wrote: »

Assuming this is lumped in with DMP, if I cancel all DD's out of this bank, can they still take payments for their own products? ie, personal loan and cc, if so this would continously put me over my arranged overdraft...or do they have to cancel DD's if I ask them too?

Yes, I have lumped in the Overdraft with my DMP and now have a new seperate bank account. However, at the beginning as I have a Natwest loan, they were taking money from my Natwest Overdraft (as I hadn't hit the limit yet) to pay the loan repayments even though I cancelled the direct debit. It is in the small print of the loan agreement that they will do this. Therefore, set up a new account ASAP and put any available funds in there instead.

Natwest have always refused to acknowledge in writting my DMP and I haven't heard anything off them since the start. Also, as I have online banking, I had cancelled my statements, now they have cancelled my access to online banking therefore I have not received statements for months. Grrr!

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TotallyBrassic

Gawd..this is a whole new element I hadn't bargained on! It's Halifax btw.
My O/D is up to limit, in fact went over it this very morning...nice shiny £35 now owing for a £2.30 dd to paypal....
so lemme get this straight, even if I cancel, they can continue to take money I havn't got, for debts I can't pay, charge me for the priviledge, and there's nothing I can do about it....

I HATE MONEY!

Thanks for the replies folks, much appreciated.

oh...just realised meant to ask, if upto o/d limit can they intentionally pay themselves if no clear funds? Cheers

Jvic28

No, I can only speak for what happened to me when I was with Natwest by the way. My overdraft limit was £2000 and I owed about £80 a month to them from a personal loan. I cancelled the loan direct debit but whenever £80 was in my account they would take it to cover the payment, so say I was £1900 overdrawn they would take £80 to pay the loan. So before getting my new account I took all the money out up to the £2000 limit so I could control how much money they got.

You really need to set up a new account and don't deposit anything into the old account. Leave CCCS to make the payments to them.

Althea

That's a good point Jvic ... I was actually going to ask, I feel a bit cheeky taking money out of my overdraft but is it a good idea to do that, once all DDs etc are cancelled and my main account is now my nice new shiny one at the new bank? I thought it would be best to leave my overdraft as far below the limit as possible (which admittedly won't be far!), but to stop them trying to take minus money out to pay off either my associated loan or credit card, would it be better to take money out right up to my overdraft limit, do you think?

Jvic28

Althea wrote: »

That's a good point Jvic ... I was actually going to ask, I feel a bit cheeky taking money out of my overdraft but is it a good idea to do that, once all DDs etc are cancelled and my main account is now my nice new shiny one at the new bank? I thought it would be best to leave my overdraft as far below the limit as possible (which admittedly won't be far!), but to stop them trying to take minus money out to pay off either my associated loan or credit card, would it be better to take money out right up to my overdraft limit, do you think?

It is a complicated one and it's hard to know what's best to do. I think I made the right decision as they were taking all the money to take the original contracted payments anyway. By taking all the money out myself they only got paid as what was agreed with CCCS. Otherwise the budget set by CCCS is pretty much worthless. Now I have a new account Natwest only get the payments forwarded to them by CCCS for the overdraft and Loan. How confusing did that sound?? To simplify it, wither I took it to the limit or they would, so I did!

TotallyBrassic

Thanks so much Jvic...so I guess paying the o/d off and closing it isn't even an option once there's a DMP on the go, because it's in their interest to have that o/d there on your account, just in case you are foolish enough to fund the account...how rubbish is that?
anyway got few butterflies now...cccs phonecall due anytime..wish me luck

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Jvic28

TotallyBrassic wrote: »

Thanks so much Jvic...so I guess paying the o/d off and closing it isn't even an option once there's a DMP on the go, because it's in their interest to have that o/d there on your account, just in case you are foolish enough to fund the account...how rubbish is that?
anyway got few butterflies now...cccs phonecall due anytime..wish me luck

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I'm sure your call will go Ok. I felt much better when it was all set up. Are you really in a position to pay off your OD? Are you behind on any affiliated loan, credit card payments? If you are, in between paying off the OD and closing the account there is a risk the bank will take the money to cover these payments. Make whatever choice you are happy with.

TotallyBrassic

No I can just about live at mo, my o/d is permamaxed!! lol
I have maintained all payments upto now...I just cannot carry on, going short of food is not an option with 4 children!
I have personal loan and cc with Halifax, both dd from this current account.
My worry was that they will still keep taking money and putting me over my agreed o/d limit, therefore charging me too!
But reading your take on things I feel a little better, if no money available they cannot take it...I hope
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cocker100

TotallyBrassic wrote: »

No I can just about live at mo, my o/d is permamaxed!! lol
I have maintained all payments upto now...I just cannot carry on, going short of food is not an option with 4 children!
I have personal loan and cc with Halifax, both dd from this current account.
My worry was that they will still keep taking money and putting me over my agreed o/d limit, therefore charging me too!
But reading your take on things I feel a little better, if no money available they cannot take it...I hope
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Hi,

The bank will continue to add interest and charges to your current account for as long as they can. That is why you need to basically abandon this account and open a new basic bank account somewhere else for your money to be paid into and for your DMP payments to come out of. Once Halifax relise what is going on, they will default the account and all interest and charges will stop. You will them need to reclaim the charges back once the High Court ruling for bank charges is finalised. LLoyds TSB did this to me and kept adding the charges month after month for nearly 5 month, racking up an extra £800 in charges. I know that these are unlawful and will simply claim them back when the High Court case is over, thus reducing the debt I owe them.

Jvic28

Yeh, basically, main thing is get that new account set up. Cancel all the direct debits and get your incomings paid into the new account ASAP.
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