credit card and 'set off'

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hartcjhart
hartcjhart Posts: 9,463 Forumite
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in Debt-free wannabe
I checked my bank balance today and find out that nationwide have helped themselves to just over 2grand,
they say it is their right to set off on an old credit card I had with them, I have not heard anything from them about the card since 2003 can they still take this money??
I :love: MOJACAR

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  • fatbelly
    fatbelly Posts: 20,504 Forumite
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    They are allowed to do it, and this is why you should never bank where you have debts
  • sourcrates
    sourcrates Posts: 28,888 Ambassador
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    As above really, it’s not often it happens, but they reserve the right to do so.

    As Fatbelly says, never bank where you have debts.
    I’m a Forum Ambassador and I support the Forum Team on the Debt free wannabe, Credit file and ratings, and Bankruptcy and living with it boards. If you need any help on these boards, do let me know. Please note that Ambassadors are not moderators. Any posts you spot in breach of the Forum Rules should be reported via the report button, or by emailing forumteam@moneysavingexpert.com. All views are my own and not the official line of MoneySavingExpert.For free non-judgemental debt advice, contact either Stepchange, National Debtline, or CitizensAdviceBureaux.Link to SOA Calculator- https://www.stoozing.com/soa.php The "provit letter" is here-https://forums.moneysavingexpert.com/discussion/2607247/letter-when-you-know-nothing-about-about-the-debt-aka-prove-it-letter
  • fatbelly
    fatbelly Posts: 20,504 Forumite
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    You could complain about the lack of warning
    Before set-off is used, a subscriber should contact the customer to inform them in clear and simple language the generic circumstances in which set-off would be used and when e.g. if the customer does not contact the subscriber
    and/or address the missed payment. This contact should be made at a time when the lender is actively considering or is likely to exercise set-off and not so far in advance of the event that the customer may no longer be aware that it
    may be undertaken. This information should be as prominent in written communications and telephone scripts as other information.

    and then refer their response to the FOS. It would strengthen your argument if the set-off has caused you particular hardship.
  • KittyHawk
    KittyHawk Posts: 20 Forumite
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    I distinctly remember a case in which a bride’s father placed two grand in her account, as his contribution to the wedding costs. Said bank promptly took it and used it against her credit card debt. I don’t believe she was in arrears, but she may have been. I can’t remember the outcome, but it made me very cautious about anything like that.
  • sourcrates
    sourcrates Posts: 28,888 Ambassador
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    They are supposed to follow certain rules and protocol, and not leave you in financial difficulty.

    It’s always worth complaining, you may have had an argument the debt was statute barred, you never know after following their complaints procedure, they may agree with you.

    Worth a try.
    I’m a Forum Ambassador and I support the Forum Team on the Debt free wannabe, Credit file and ratings, and Bankruptcy and living with it boards. If you need any help on these boards, do let me know. Please note that Ambassadors are not moderators. Any posts you spot in breach of the Forum Rules should be reported via the report button, or by emailing forumteam@moneysavingexpert.com. All views are my own and not the official line of MoneySavingExpert.For free non-judgemental debt advice, contact either Stepchange, National Debtline, or CitizensAdviceBureaux.Link to SOA Calculator- https://www.stoozing.com/soa.php The "provit letter" is here-https://forums.moneysavingexpert.com/discussion/2607247/letter-when-you-know-nothing-about-about-the-debt-aka-prove-it-letter
  • National_Debtline
    National_Debtline Posts: 7,998 Organisation Representative
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    sourcrates wrote: »
    It’s always worth complaining, you may have had an argument the debt was statute barred, you never know after following their complaints procedure, they may agree with you.

    Worth a try.


    The bank might well agree the debt is statute barred sourcrates, but it doesn't have any bearing on their right to offset the new funds against it. Better to focus on whether it was reasonable to do this and whether due warning should have been given in any complaint to the bank (and subsequently FOS), as per fatbelly's suggestion.


    Dennis
    @natdebtline
    We work as money advisers for National Debtline and have specific permission from MSE to post to try to help those in debt. Read more information on National Debtline in MSE's Debt Problems: What to do and where to get help guide. If you find you're struggling with debt and need further help try our online advice tool My Money Steps
  • sourcrates
    sourcrates Posts: 28,888 Ambassador
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    National_Debtline wrote: »
    The bank might well agree the debt is statute barred sourcrates, but it doesn't have any bearing on their right to offset the new funds against it. Better to focus on whether it was reasonable to do this and whether due warning should have been given in any complaint to the bank (and subsequently FOS), as per fatbelly's suggestion.


    Dennis
    @natdebtline

    Agreed Dennis, I was looking at the situation as a whole, complaints have the power to reverse banks decisions, so the more ammunition gathered against them the better.
    I’m a Forum Ambassador and I support the Forum Team on the Debt free wannabe, Credit file and ratings, and Bankruptcy and living with it boards. If you need any help on these boards, do let me know. Please note that Ambassadors are not moderators. Any posts you spot in breach of the Forum Rules should be reported via the report button, or by emailing forumteam@moneysavingexpert.com. All views are my own and not the official line of MoneySavingExpert.For free non-judgemental debt advice, contact either Stepchange, National Debtline, or CitizensAdviceBureaux.Link to SOA Calculator- https://www.stoozing.com/soa.php The "provit letter" is here-https://forums.moneysavingexpert.com/discussion/2607247/letter-when-you-know-nothing-about-about-the-debt-aka-prove-it-letter
  • poppasmurf_bewdley
    poppasmurf_bewdley Posts: 5,909 Forumite
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    sourcrates wrote: »
    They are supposed to follow certain rules and protocol, and not leave you in financial difficulty.

    It’s always worth complaining, you may have had an argument the debt was statute barred, you never know after following their complaints procedure, they may agree with you.

    Worth a try.

    Doesn't statute barred just mean that they can't take legal action to recover the money, not that the money isn't still owed? That's how the DWP look on debts more than six years old - they can recover them by deductions of benefit, pensions, etc.
    "There are not enough superlatives in the English language to describe a 'Princess Coronation' locomotive in full cry. We shall never see their like again". O S Nock
  • sourcrates
    sourcrates Posts: 28,888 Ambassador
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    poppasmurf_bewdley wrote: »
    Doesn't statute barred just mean that they can't take legal action to recover the money, not that the money isn't still owed? That's how the DWP look on debts more than six years old - they can recover them by deductions of benefit, pensions, etc.

    Yes that’s correct, maybe the bank has a conscience I don’t know.
    I’m a Forum Ambassador and I support the Forum Team on the Debt free wannabe, Credit file and ratings, and Bankruptcy and living with it boards. If you need any help on these boards, do let me know. Please note that Ambassadors are not moderators. Any posts you spot in breach of the Forum Rules should be reported via the report button, or by emailing forumteam@moneysavingexpert.com. All views are my own and not the official line of MoneySavingExpert.For free non-judgemental debt advice, contact either Stepchange, National Debtline, or CitizensAdviceBureaux.Link to SOA Calculator- https://www.stoozing.com/soa.php The "provit letter" is here-https://forums.moneysavingexpert.com/discussion/2607247/letter-when-you-know-nothing-about-about-the-debt-aka-prove-it-letter
  • hartcjhart
    hartcjhart Posts: 9,463 Forumite
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    thank you for the replies,spoke to the bank again today and made a complaint,they say they wrote to me(at an old address) but they did not write to me at the address they had for the flex account that they have taken the money from as they did not have to!!,
    I will update after they go through their complaints proceedure
    I :love: MOJACAR
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