Do you have money worries and a loan or credit card with your bank?

SeriouslyStressed · 17 June 2010 at 3:37PM

My friend very recently had £200 taken from his HSBC bank account to pay towards a card he owes on.... nothing unusual you say from the setting off rule..
BUT.... the credit card account was ( and still is ) in dispute/frozen as a result of over a years worth of waiting for them to comply with a CCA request.
As we all know, when a credit card account is in default/dispute due to non compliance with a CCA request, the account is basically locked and no data can be passed around, and as it is in dispute, they are not allowed to ask for , or take money from you to service the account ( that is in dispute ) until such time as they have complied with the CCA request.
I think HSBC are seriously in the wrong for using the setting off rule to service a card account that is in dispute with an outstanding CCA request on it.

What do you think ?

samhuzz · 17 June 2010 at 3:54PM

This also happened to me with Lloyds. I had an overdraft, loan and credit card with them which I was struggling to pay. I tried to buy something online when I got paid and the card was declined. I rang the bank and they'd took all of my money! Luckily my mum lended me the money to pay my bills and rent, and I swapped to Nationwide as soon as I could to prevent it happening again. I'd advise people with bad credit ratings to try them for a basic account, they gave me one and I have a CCJ and about 5 defaults at the mo.

zabba · 19 June 2010 at 10:44PM

I have held a joint account for a shared freehold with HSBC since 2004, but it has been dormant and in credit since 2007. I found out last september that money had been transferred from the joint account to the other account holder's personal account to cover his debts making the joint account overdrawn and me responsible for his debt. I was never made aware that this could happen without my authorisation. HSBC say that they are allowed to do this within their terms and conditions, (it does say they may do this, but doesn't say it will be done without the permission of the other account holders). The CAB guidelines say this can't happen without permission without clear notification in their terms and conditions.

who is right? I cannot believe that I can be made responsible for someone else's overdraft without being warned. I am going through their complaints procedure but not really getting anywhere. I am expeecting a baby in 9 weeks, and they are threatening to refer me to a credit reference agency - I really can't afford to pay off his debt at this time.:(

notomonkeys · 20 June 2010 at 4:01PM

Hi ZABBA,

I think your Question is a good one.
I think the best idea would be to look at the terms and conditions of your Joint account, some accounts may or may not require consent from the other party regarding offsetting charges/debts etc..
If you ARE required to be informed and your consent given according to the t&c's then:-
a) Continue with your Banks complaints policy. IMPORTANT!
b) If their response is unsatisfactory then you would definitely have a case to take to the FOS i'd also ask the FOS to get compensation from the Bank for the stress they've caused.
(Remember to keep a record of all letters sent/recieved regarding the matter, so you can pass these on to the FOS)

In the meantime good luck and I hope you get it all sorted.

Cheers

goingthruDRO · 3 July 2010 at 12:58PM

i have credit card overdraft and loan debt with tsb so i have a dro, i then opend co-op bank , phoned tax creditd to tell them new bank-got payment in co-op bank, then tax credits realise they owe me 423 from last yr and pay it to lloyds tsb-tsb keep the money and tax creds say thats last yrs money so goes into last years bank!! tsb arent suppose to recover debt while under a dro so will i get this money I'm entiltled to?? what do i do next?

Mattdl_2 · 7 July 2010 at 12:31PM

Does anyone know what the situation is with 'One Accounts'? By definition, they have your current account and your mortgage account. Can they just take your current account money?

Cell · 8 July 2010 at 9:11PM

zsazsa wrote: »

Does this setoff only occur if you are in arrears? I am up to date with all my monthly payments but I am in major debt

I, too, would appreciate an answer to this. I have savings and debts. A 100% payment record. If my savings were taken in offset, however, I'd be in a real mess.

TILER · 4 August 2010 at 2:43PM

I have read this thread with interest as I had a setting off problem with Nationwide some years ago and havn't thought about it until stumbling over this thread.

I think the one thing which would be of most benefit to avoiding the setting off would be a listing of which banks are owned/associated with which banks.

Could anyone help with this ?

tiler

Pott5y · 4 August 2010 at 3:23PM

Tiler,

Hannah10 is researching this at the moment. There is a thread which I have just bumped to the top of the DFW forum

Its a great list and quite interesting when you look into it.

euanwozere · 2 September 2010 at 10:18AM

I find it strange that it seems to be the same banks doing the dodgy things like this. It's always Loyds and HSBC time and again.

It seems best not to leave accounts open. Close them and ask for evidence of it and move to banks that don't appear on these forums in this bad light.

Do you have money worries and a loan or credit card with your bank?

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