Your views and questions.

Moderators: TalbotWoods, JaneClack

By red24
#334013 I know its always been said and I dont want to tempt fate.............but..............is it wise to open a new bank account with someone I still have a debt with, going back to 2005 on my DMP but still paying through Payplan!
Will they think, bingo, lets take all this money?
User avatar
By TalbotWoods
#334063 DO NOT OPEN AN ACCOUNT WITH A BANK YOU HAVE A DEBT WITH!

Very simply they have the right to off set your good account against you bad account, no matter how good you are at repaying the bad account.

Imagine the scenario, you have saved up a bit for a new washing machine, new car or even a holiday, you then go to pay and find the bank has carried out it right to off set, there is ZILCH left in your good account. This is perfectly legal and IT DOES HAPPEN, and the worst part is that they dont have to tell you when they are goign to do it, they can just do it!

So simple tip:

DO NOT OPEN AN ACCOUNT WITH A BANK YOU HAVE A DEBT WITH!
By red24
#335443 OMG, its too late Ive done it.
I had no idea we had this particular bank as one of our creditors, mainly as they are sold on so often it doesnt show up as their name.

So the account is opened, we sent the signed papers back yesterday, had a strange conversation yesterday with someone from the bank!
But apparently it is all ready to be used, cards are on their way, online banking is ready to sign into.

Of course they ask for current bank account details when applying - why?? they dont organise setting up the DDs which I thought they did.
We have money in our current account, my salary etc goes into that account................and we go away on Monday!!
What do you suggest is the best thing to do now, apart from cry?
User avatar
By TalbotWoods
#335463 Which banks

As if the bank has been bought by another, then they may not have combined their banking licences, such as Halifax, Bank of Scotland and Lloyds are now the same bank, but each have their own Banking Licence, so cant off set against each other

And offsettig isn't that quick!
By red24
#335483 Co-Op, which has always been the one recommended on here. I have just transferred all the money out of our current to another and its disappeared into thin air!!
This is because Nationwide pissed me off charging fees when it really shouldnt have so I said I would go somewhere else.

Only want a straight forward account, no overdraft or cheque book but that has DD facility, any you recommend, none pay any interest now so they are all the same!
By red24
#337173 The interesting thing is we have been accepted for a current account Plus with all the usual sweeteners which we dont want.

I have just called them to say we dont want to go ahead with the account and I think the guy was a bit shocked, so everything now goes in the shredder.

One thing, if we continue to use the bank we were with who they now have details of, are we still at risk??

Thanks
User avatar
By TalbotWoods
#337413 If your debt is in a long term DMP, and I beleive from what you have said previously, it has been since 2005ish, then when the bank did their normal CRA checks, it would have been clear, hence the acceptance. In fact if all your past accounts were defaulted, then is it very possible you actually have a good CRFs, as the accounts fall off 6 years from the default date / date a CCJ is issued etc.

Now, what would have happened is that over the next few months your details would have promulgated down through the the banks various computer systems, and would have eventually flagged up the account in their debt department, who could have gone for offset.

And no them having the details of your nationwide account wont make any difference, Offsetting can ONLY occur between accounts under the same banking licence, in this case the Co-op cannot touch your Nationwide account.

Tim
By red24
#337683 So do the Co op and Nationwide not share the same licence? How do I know who does?

There used to be a list years ago available on here I think, to say who was linked to who. Is that not still around?
User avatar
By TalbotWoods
#337703 We dont keep a list any more as it got pretty complicated since 2008, but the most current is here (as of Aug 2012)

http://www.thisismoney.co.uk/money/savi ... ences.html

Tim