banks

[WinTheRace]

im in a dmp

but just noticed my bank hsbc owns one of my creditor companies hfc bank. is this dodgy?

Was going to open a co-op one which i have been approved- but i belive they are linked to virgin but very tenuously which is another creditor. Virgin use co-op to do loans not credit cards and mines a credit card (MBNA).

Any ideas should i stick change or go with someone else? Whats the worse can happen?

[Adam Davies]

Hi
You are safe with HSBC as long as they are directly not a creditor.
The Co-op bank is not linked to any other financial institution other than the Britannia Building Society.
The worse case scenario is that you will be given notice, probably 30 days, to close your account.
Regards

[WinTheRace]

thanks i may stick with hsbc and open a co-op account if an emergency happens!

Are you allowed 2 current accounts?

Also there is a overdraft on my hsbc of 500 but i never use it. Do I have to cancel this in a dmp i dont intend on using it but its handy if i go over by a pound or something to avoid charges.

[kallis3]

You can have as many current accounts as you wish if you can get them!

There is no requirement in a DMP to cancel an overdraft facility as far as I know, but it might be an idea to do so to remove the temptation.

I have no overdraft facility and always make sure that there is enough money in to cover all my outgoings for the month.

[ivas4us]

I was advised when I started my dmp to get another account as I had an overdraft and other lending from the same bank

[kallis3]

I was told the same, but I don't think the fact that HSBC and HFC are linked will matter, as they are two seperate entities. I doubt HFC has the right of offset with HSBC.

I could be wrong though.