urgent help needed

[the-auctioneer]

hi all

I have a problem......

I HAD an egg card, defaulted several years ago & was paying them a monthly DD. When they refused to freeze interest etc I stopped the DD. Since then I have moved.......

I have a Barclays current account that has laid dormant for the last 2 yrs, have just reactivated it.....put some cash in & hey presto....Barclays have taken my cash to set against the egg debt. I have no debts/credit with Barclays.......or didnt until they bought Egg!

I didnt even know Barclays had taken over egg.......certainly not had any correspondence from egg/barclays about it....

Barclays say that I would have been notified at my old address last Nov, I moved in July last yr....

Can they do this?

[Susie]

Re: urgent help needed

Ouch, yes they can offset, thats why people are advised never to bank where they have debts Nothing you can do now except close the Barclays account and open another with a bank unrelated to ant debts you may have.
I am watching the possible co-op purchase of the Lloyds branches because I currently bank with Co-op and have an account at one of the Lloyds branches thats being sold, the deal looks a bit shakey at the moment but if they did buy them I would have to get away from co-op just in case. That gives you an idea of how vigilant you need to be. Could you set up redirection from your old house so that you are not caught out again?

[oscar]

Re: urgent help needed

As far as I am aware Susie, they are buying the branches - the actual phyical building. Your account will remain with LTSB.

Auctioneer - agree with Susie. Unfortunately, they are able to do this. As susie suggests, you need to get another account.

[Never-In-Doubt]

Re: urgent help needed

Now there are some exceptions to the rules of RoSO so can you please clarify where the funds were from, ok more to the point had it been living expenses and/or benefit payment and you are in financial hardship, then you can get it back - there are certain RoSO exemptions, but I don't know if you'll fall into them.

---> FOS | issue 40 - banking: firms' right of SetOff

That gives you some guidance notes.

[mgfboy]

Re: urgent help needed

Out of curiosity, I have a Barclay's account ( heavily overdrawn!!) can they off set against a OD and can they offset if it's a joint account???

[SXGuy]

Re: urgent help needed

joint account, i dont think so, as techincally it may not be your money, i dont know, someone else can confirm that.

Overdraft? no way, wasnt your money to begin with, if they took it, it would put you in debt with the bank, they cant do that.

[Never-In-Doubt]

Re: urgent help needed

Out of curiosity, I have a Barclay's account ( heavily overdrawn!!) can they off set against a OD and can they offset if it's a joint account???

Read the FOS link above - that explains examples.

They can offset against a sole account or similar. So if you had a sole credit card debt and a joint bank account they would be incorrect to take from the joint bank account if the other account holder was nothing to do with the credit card, so say you and your child had an account they'd not be able to offset that, but any financial link such as a partner, they could.

[Never-In-Doubt]

Re: urgent help needed

joint account, i dont think so, as techincally it may not be your money, i dont know, someone else can confirm that.

Overdraft? no way, wasnt your money to begin with, if they took it, it would put you in debt with the bank, they cant do that.

The FOS link above shows examples!

Overdrafts, no they cannot make you go into a negative position so assume you had a £100 overdraft and stopped using the account and you were 1p in credit, they could NOT take next months loan payment of £65 out as that'd make you overdrawn, regardless of the fact it is an authorised overdraft.

[helmsman]

Re: urgent help needed

The FOS link above shows examples!

Overdrafts, no they cannot make you go into a negative position so assume you had a £100 overdraft and stopped using the account and you were 1p in credit, they could NOT take next months loan payment of £65 out as that'd make you overdrawn, regardless of the fact it is an authorised overdraft.

Hi Niddy,
Sorry to hi jack the thread, can a payday loan be paid by a bank then you go into an unauthorised O/D can the bank charge you for then being O/D.
Thanks

[Never-In-Doubt]

Re: urgent help needed

Thanks Nids, that's exactly the place where I'd previously looked, only someone pointed out to me OTR that my source was 7 years out of date and that there was new guidance, mostly with regards to banks warning people about set off and there was a link to something dated later than 2004. I'll try to find that post!

Nothing has changed other than the banking code being replaced with lending standards board - but the RoSO process remains the same.

Latest version here: ---> issue 84 -recent banking complaints involving 'set off'

or FSA leaflet here ---> http://www.fsa.gov.uk/pubs/consumer_...ghts_guide.pdf

[alangee]

Re: urgent help needed

I guess that they could withdraw the overdraft facility, though. Which could be a bigger hardship.

Alan

[Never-In-Doubt]

Re: urgent help needed

Hi Niddy,
Sorry to hi jack the thread, can a payday loan be paid by a bank then you go into an unauthorised O/D can the bank charge you for then being O/D.
Thanks

Yes a PDL can make you overdrawn as this is not RoSO is it? Its a continuous payment authority and the bank will usually pay things to a certain level above any agreed borrowing.

Yes the bank can charge you as they can also charge for bouncing the DD so assume that you have £1 in your account and have a £50 DD due out, you know you'll get a £10 charge for bouncing the DD but you'll get a £42 unauthorised OD charge - what would you prefer.....

[helmsman]

Re: urgent help needed

Yes a PDL can make you overdrawn as this is not RoSO is it? Its a continuous payment authority and the bank will usually pay things to a certain level above any agreed borrowing.

Yes the bank can charge you as they can also charge for bouncing the DD so assume that you have £1 in your account and have a £50 DD due out, you know you'll get a £10 charge for bouncing the DD but you'll get a £42 unauthorised OD charge - what would you prefer.....

Thanks Niddy
Stupid no 2 son has got himself cought up with these vultures, not a lot but the bank closed his acc and want their money back, we offerred to pay the O/D up if they stopped the charges they declined so Fu em he is not working and They can sing for it now.
Thanks

[Never-In-Doubt]

Re: urgent help needed

Thanks Niddy
Stupid no 2 son has got himself cought up with these vultures, not a lot but the bank closed his acc and want their money back, we offerred to pay the O/D up if they stopped the charges they declined so Fu em he is not working and They can sing for it now.
Thanks

ahh guess you never knew our PDL process at the time this happened? The first thing we advise is to cancel the card as STOLEN then you get a new one which 99.99% stops all CPA's

Let me know if you get shit mate, will try and sort it for you

[helmsman]

Re: urgent help needed

ahh guess you never knew our PDL process at the time this happened? The first thing we advise is to cancel the card as STOLEN then you get a new one which 99.99% stops all CPA's

Let me know if you get shit mate, will try and sort it for you

Hi Thanks Niddy,
I know about cancelling card ect, no the stupid idiot keeps doing it and we bail him out each time a lot of money over the last 2 years, and he keeps doing it so this time he has to learn the hard way so he will get defaulted ect and that will we hope stop it, we have kept him a good credit file for years paying his debts. but we have done him no favours by doing it. A good lesson for other parents it is not always best to keep bailing the kids out.