HSBC and OD's

[mgfboy]

I was wondering if I could have your thoughts on this which happened to me a couple of years ago.

I had a HSBC joint premier account with a £12K OD and also my wife had premier charge card with about £10K on it, I was being a bit naughty and I was recycling money for one to the other ( saying that , it may of been naughty but they charged me for it.) So just before christmas 2008 they decide without warning to close the card down after paying it from our joint account. This lead to the joint account being £10k over it's limit and the next thing was they froze all our account and cancelled all our ddi's etc.

My question is can they move a debt in a single name in a CCA controlled account legally into the joint names in a non CCA od controlled account. Also as there was no fraud is there any recourse as they have broken the banking code?

This all lead to a tale of woe, which I wont bore you with at the moment.

[nattie]

Re: HSBC and OD's

Hang on, I would of thought that the right of Set Off would be breached if they paid off the card and then took the account over the overdraft limit since the right of Set Off does not state that you can do what you like....hmmmm.

Did you complain at the time about the inappropriate use of the Right of Set Off?
I can't answer the CCA question btw

[mgfboy]

Re: HSBC and OD's

Hang on, I would of thought that the right of Set Off would be breached if they paid off the card and then took the account over the overdraft limit since the right of Set Off does not state that you can do what you like....hmmmm.

Did you complain at the time about the inappropriate use of the Right of Set Off?
I can't answer the CCA question btw

It's actually all with FOS at the moment as part of a huge complaint I have going with them. The adjudictor seems to think that was fine, in fact he seemed to have ignored cca1974 completely, he seemed to think his roll was to protect the bank from me!!! so it currently in the full review stage with the obudsmans and has been for the last 6 months.

[nattie]

Re: HSBC and OD's

banking: firms' right of
The original Right of Set Off rules are here.

issue 84 -recent banking complaints involving 'set off'
The above was later updated but this is post Banking Code and post your issue as it was not within the banking code at the time.

Did they contact you prior to making the Set Off with regards to repaying the credit card?

[mgfboy]

Re: HSBC and OD's

banking: firms' right of
The original Right of Set Off rules are here.

issue 84 -recent banking complaints involving 'set off'
The above was later updated but this is post Banking Code and post your issue as it was not within the banking code at the time.

Did they contact you prior to making the Set Off with regards to repaying the credit card?

Nope it was out of the blue, in fact they have never formally told us they did it!!!!

[Never-In-Doubt]

Re: HSBC and OD's

Nope it was out of the blue, in fact they have never formally told us they did it!!!!

And they don't need to either else, naturally, you'd withdraw to stop them from doing so

Best of luck with this

[caspar]

Re: HSBC and OD's

Also don't forget that overdrafts are only partially governed by CCA.

[mgfboy]

Re: HSBC and OD's

And they don't need to either else, naturally, you'd withdraw to stop them from doing so

Best of luck with this

Hi Niddy

I dont think I explained myself clearly to start of with, they didn't off set the money. The card wasn't a credit card as such it was charge card ( still though regulated under cca1974 I believe) that had to be paid in full each month, so what I was doing was in effect recycling the money off the charge card though the bank account and back again. But because they pulled the facility I couldn't recycle the money back on the card so leaving the current account £10k over it's limit. So they in effect moved a debt in my wifes name only into our joint names becuase they choose to pay it even though it was outside our set OD limit.

I hope that this makes thing clearer.

[Never-In-Doubt]

Re: HSBC and OD's

But agreed they can't pay a business card off using one: however I note you called it a chargecard in which case if they USED to always take the gull balance eachonth (as is normal for charge cards) then there's fook all you can do as part of the terms say you agree to pay it all and usually it also says via your HSBC bank.

Putting you overlimit isn't normal but if it was part of the chargecard terms then no matter what, this needs to get paid....

Weird one

[mgfboy]

Re: HSBC and OD's

But agreed they can't pay a business card off using one: however I note you called it a chargecard in which case if they USED to always take the gull balance eachonth (as is normal for charge cards) then there's fook all you can do as part of the terms say you agree to pay it all and usually it also says via your HSBC bank.

Putting you overlimit isn't normal but if it was part of the chargecard terms then no matter what, this needs to get paid....

Weird one

Actually in the T&C they do state I believe that it should be paid , but if not they apply interest to the debt. So it was their call to pay it, there was no contractual obilgation. I had a similar situation with Barclays and if the account didn't have enough money of OD they would bounce the payment back to BCARD