Hi Renickelizabeth,

Well providing you do not owe your current bank any money, there is no reason why you cannot open a new bank account. As a debt management plan is not a legally binding agreement, you aren’t restricted by the same rules that apply to IVA’s or bankruptcy. For more information on debt management plans, 1stopmoney.com provides a range of debt management services and information to help you tackle your debt.

Good luck!Ignore Sunchine, of course you can move banks! Get it set up first and then call the DWP to change the payment details. I had 3 bank accounts and the main one got screwed with charges etc so I had to move some DWP payments over to my other two bank accounts. Was done easily and swiftly. NO paperwork involved at all, you just call them up and do it over the phone! Just make sure if your payed weekly that you have a little cash to tide you over until the next payment as it can take a few days to change it over.

In fact the CCCS and the CAB ALL reccomend changing banks when your in debt with the current bank your with so that benefit payments DO NOT get swallowed up (the bank have every right to take them accept DLA)

Just go into any bank and ask to set up a new account! (if your credit is bad you may have to open a basic bank account BUT you can still have those with debit cards. I am with the Co-op and have a basic bank account eg no overdraft, no cheque book BUT I HAVE a debit card!)

Give it about 2 weeks to set up and then give the DWP a call. I know exactly what your going through and have done this move twice, once for me and another for my partner. Best of luck!

P.S if you miss ONE payment your plan will NOT be voided. There are times when DWP payments are late, you do not control how and when you get payed. You will NOT void your plan by paying late. As long as you keep up regular payments you will be fine! Once you have set up the new bank account and called the dwp you can call your old bank and just say your payment will be late! NO problem!

With the CCCS on DMP myself for 3 years know ALL the legal ins and outs AND the MYTHS. EDIT Even if you do owe the bank money you can still move bank account! As long as you keep up repayments it doesn’t matter! I owe natwest £2k but I have two other bank accounts I use, one of which I got AFTER I got into debt.

 

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