RBS Account Termination Letter

whambam
whambam Posts: 508 Forumite
in Credit cards
Hi,

My bank has threatened me to set off my funds I hold with the bank current account and savings against any debt owed? Can they do this legally without my say so or do they require approval from the court. I don't hold bank accounts with any other creditors which I have credit cards, which is a good thing, however could those creditors access my bank account without my authority is that not a crime?

Letter attached.

RBS_Account_Termination.jpg



Thanks.
«134

Comments

  • BlondBoy
    BlondBoy Posts: 186 Forumite
    Name Dropper First Post First Anniversary
    They can use the right to set off if it's in the T&Cs of your current/savings account (and probably the credit card too). I don't bank with RBS but every bank I've had a current account or card with has the right to set off in the T&Cs - and wouldn't imagine RBS are any different.

    Other banks can't access your RBS account though. So hopefully that's one less thing to worry about right now.

    Folk that know a lot more about it than me will arrive with advice shortly, I'm sure. But it looks to me like they're warning you they might do it. So you've got a little bit of time.

    Don't know what your circumstances are, but if you can I'd phone them tomorrow and agree some sort of payment to them. That will reduce the immediate risk of set-off. But you'll either need to come to a payment arrangement with them on the credit card or move your funds outside the RBS Group pretty quickly, would have thought.

    Best of luck.
  • whambam
    whambam Posts: 508 Forumite
    Do they keep setting off every month or so until they get their full balance owed back? Or do they do it once?
  • Richey_
    Richey_ Posts: 334 Forumite
    Why are you worried, 4 months ago you were preaching that the pursuance of debt is illegal

    http://forums.moneysavingexpert.com/showthread.php?t=5497769
  • BlondBoy
    BlondBoy Posts: 186 Forumite
    Name Dropper First Post First Anniversary
    They can do whatever they think is appropriate - have a look here: http://www.moneysavingexpert.com/banking/setting-off

    Looks to me like it's a standard letter which, among other things, is warning you they may use the right to set off.

    Could you call them in the morning, explain your circumstances and agree some sort of payment to the card (one-off or over a period of months?). They're less likely to set off then.
  • bengal-stripe
    bengal-stripe Posts: 3,349 Forumite
    Name Dropper Combo Breaker First Post First Anniversary
    whambam wrote: »
    Do they keep setting off every month or so until they get their full balance owed back? Or do they do it once?

    It appears you only have £142 as arrears.

    The bank will deduct it from the balance and issue you a cheque for the remaining £2,000 (as they have decided to close your account).

    I doubt you can get them to change their minds.
  • eskbanker
    eskbanker Posts: 30,837 Forumite
    First Anniversary Name Dropper Photogenic First Post
    bengal-stripe wrote: »
    It appears you only have £142 as arrears.

    The bank will deduct it from the balance and issue you a cheque for the remaining £2,000 (as they have decided to close your account).
    The way I read the letter was that OP's credit card debt stands at just over the £2K, that's not a credit balance in a savings or current account!
  • bengal-stripe
    bengal-stripe Posts: 3,349 Forumite
    Name Dropper Combo Breaker First Post First Anniversary
    eskbanker wrote: »
    The way I read the letter was that OP's credit card debt stands at just over the £2K, that's not a credit balance in a savings or current account!

    You're probably right. I saw 'current balance' and presumed it was a current account with a nice bit of money in there.
  • whambam
    whambam Posts: 508 Forumite
    good news got approved a nationwide account taking my banking elsewhere.

    Banks should really understand customers circumstances and agree certain amount they can afford but they don't and they will default you and take you to court rather than giving you a chance.

    It's time to fight. They banks get bailed out all the time why can't we at least its fair. Our companies we work for are not and will not pay us the right amount of money so we can pay our bills and tax will not go down.
  • [Deleted User]
    [Deleted User] Posts: 35,242 Forumite
    First Anniversary Photogenic Name Dropper First Post
    Why does your company not pay you the right amount of money?
  • GothicStirling
    GothicStirling Posts: 1,157 Forumite
    RBS have decided that you are a bad debt risk, and done what any sensible lender would do. This did not have to get to this stage, it would have been simple enough to agree an affordable monthly repayment plan.

    Take this as a warning to work out a budget, and not to rely on credit you can't afford.
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