I am under debt review and my DC advised me to close my overdraft account. Now the bank is threatening me. if I close the account. Can they do it?
Thank you for getting in touch.
The reason for the DC instructing you to close the bank account is to prevent the bank from doing money grabs from your account.
You should open a new bank account with a bank at which you do not owe any money.
The overdraft cannot be closed. The DC will negotiate with the bank for a repayment plan on the overdraft account. The account will simply be de-activated so you cannot make use of the overdraft anymore.
Remember to change your bank account number with your HR department to make sure your salary gets paid into the new account.