Your browser isn't supported
It looks like you're using an old web browser. To get the most out of the site and to ensure guides display correctly, we suggest upgrading your browser now. Download the latest:

Welcome to the MSE Forums

We're home to a fantastic community of MoneySavers but anyone can post. Please exercise caution & report spam, illegal, offensive or libellous posts/messages: click "report" or email forumteam@.

Search
  • FIRST POST
    • Former MSE Wendy
    • By Former MSE Wendy 3rd Mar 09, 4:37 PM
    • 868Posts
    • 1,782Thanks
    Former MSE Wendy
    Do you have money worries and a loan or credit card with your bank?
    • #1
    • 3rd Mar 09, 4:37 PM
    Do you have money worries and a loan or credit card with your bank? 3rd Mar 09 at 4:37 PM


    This thread is to specifically discuss the Setting Off guide


    Many bank accounts have a little known 'Setting Off' clause, which means they can transfer cash, without permission, to pay off other debts held with it. Anecdotally, banks are invoking this more, especially for people in trouble; leaving victims without any cash.

    If you're at risk, the only way to stop this outrageous practice is to move your bank account or debts to another bank.

    Further reading: Radio 4 MoneyBox Story, Listen to the story


    Please report your story below if you have been affected by this

    PS. Martin & the site are looking to campaign on this issue, and we need your help. If you are be willing to be a case study in the media please email us with details so we can get hold of you if needed. As well as posting below of course.
    Last edited by MSE Researcher; 14-06-2010 at 5:30 PM.
Page 14
  • Slipper1
    Interesting thread but with so many pages, I haven't been able to read them all. Someone there may be able to answer a simple question though.

    NatWest recently wrote advising that they retained the right to set off credit balances in any account against debit balances in any other account.

    I'm closing our limited company and although the bank accounts are at zero balance, the credit card is at around £2,300 debit.

    My personal and sole trader accounts are all in credit.

    Question is; can the bank take money from my personal or sole trader accounts to clear the debt on the limited company credit card?

    Thanks in advance.
  • Loimy
    I had a credit card with Natwest that regrettably defaulted in 2007. This became statute barred in 2013 and dropped off my credit file.

    I've just received a letter from Natwest reminding me of this defaulted account and stating their Right to set off the outstanding amount with funds held in my other Natwest accounts (I have a current and savings account).

    However, the letter also states that the default is now managed by Apex Management and that I should contact them "urgently" to discuss my repayment options. They quoted a phone number for Apex which is no longer a valid number. I have moved house recently and don't have any recollection of any letters from Apex.

    My questions are:
    - can they still set off the outstanding balance even after the default has been statute barred after 6 years?
    - if they have sold off the debt to a debt management company who have not contacted me for the past 4 years, is this letter something to worry about or is it just scare tactics from the bank?
    - if I contact Natwest to query this letter and offer to pay back the debt, will this reinstate the defaulted account on my credit report?

    Many thanks in advance for any advice.

    L
  • shaunaaron
    can bank setoff whole amount of ppi or just arrears
    CAN BANKS TAKE ALL THE PPI or just the arrears

    I got a mortgage statement and my mortgage last month was 890debit arrears and this month it was 4780 in credit , so anxiously I phoned and they told me it was for ppi , I have never made a claim for ppi they just refunded it to my mortgage account . she told me that they could not tell me anything else until I received the letter that would explain more .( still waiting for letter) SO WHY has it been paid direct to my mortgage account without even telling me I had ppi , im a little confused ,,,,, can the bank keep it or just the Arrears ????
    • tgroom57
    • By tgroom57 18th Feb 15, 1:06 PM
    • 1,264 Posts
    • 12,532 Thanks
    tgroom57
    In a few years time I will start drawing a company pension, and there is a lump sum as well to start with. Nothing enormous, just a "useful" amount. I will not pay this lump sum into my bank account, because they would take off the full amount of a credit card default some years back, and I would sooner pay a partial settlement when I'm good and ready.

    So no question really. Just a heads up to anyone in the same boat.

  • Dixiegirl
    Hi looking for advice please ,I am currently in a dmp with stepchange ,my debt is with Barclays ,mint cc and rbs cc,can anyone tell me if I put any money into a Lloyds bank account can anyone take this at source to pay off cc s,
    • thebool
    • By thebool 25th Apr 15, 1:47 PM
    • 2 Posts
    • 0 Thanks
    thebool
    I had a credit card with Natwest that regrettably defaulted in 2007. This became statute barred in 2013 and dropped off my credit file.

    I've just received a letter from Natwest reminding me of this defaulted account and stating their Right to set off the outstanding amount with funds held in my other Natwest accounts (I have a current and savings account).

    However, the letter also states that the default is now managed by Apex Management and that I should contact them "urgently" to discuss my repayment options. They quoted a phone number for Apex which is no longer a valid number. I have moved house recently and don't have any recollection of any letters from Apex.

    My questions are:
    - can they still set off the outstanding balance even after the default has been statute barred after 6 years?
    - if they have sold off the debt to a debt management company who have not contacted me for the past 4 years, is this letter something to worry about or is it just scare tactics from the bank?
    - if I contact Natwest to query this letter and offer to pay back the debt, will this reinstate the defaulted account on my credit report?

    Many thanks in advance for any advice.

    L
    Originally posted by Loimy
    Interested to know what happened with this.
    • dimpy23
    • By dimpy23 12th Oct 15, 5:16 PM
    • 13 Posts
    • 0 Thanks
    dimpy23
    PPI used to set off credit card debt
    I have found out today that 3 years ago Halifax used my PPI award to set off against a credit card debt.

    I haven't had any correspondence about this at all.

    It only came to light because a few weeks ago they sent me a letter and questionnaire saying that my PPI claim could be reconsidered. Today's letter says that it was reconsidered in 2012 (without my knowledge) and I was awarded £1100.

    I couldn't find any record of this in correspondence or bank so rang them - after much faffing about the girl said it had been used against my debt.

    A letter's gone out tonight asking for copy statements from beginning of 2012 to date as they seem to have stopped sending me any.

    Is if acceptable for PPI awards to be used in this way?
    Any chance of a refund do you think?
    My personal circumstances are pretty dire due to bereavement and divorce, as they have been advised many, many times.

    Thanks, Dimps
    • Kev42976
    • By Kev42976 22nd May 17, 11:01 PM
    • 1 Posts
    • 0 Thanks
    Kev42976
    Barclays
    I am slightly concerned after reading some of these posts.
    I am about to enter a DMP, with one of my debts being £5400 owed to Barclaycard.
    I have today opened a basic bank account with...........Barclays!
    Can they take money from my new account to repay the debt to Barclaycard?
    • sourcrates
    • By sourcrates 22nd May 17, 11:14 PM
    • 11,967 Posts
    • 11,450 Thanks
    sourcrates
    I am slightly concerned after reading some of these posts.
    I am about to enter a DMP, with one of my debts being £5400 owed to Barclaycard.
    I have today opened a basic bank account with...........Barclays!
    Can they take money from my new account to repay the debt to Barclaycard?
    Originally posted by Kev42976
    Yes, get a different account, preferably with a bank with whom you have no debt.
    I'm a Board Guide on the Debt-Free Wannabe, Credit File And Ratings, and
    Bankruptcy And Living With It, boards. I'm a volunteer to help the boards run smoothly, and I can move and merge posts there.
    Board guides are not moderators and don't read every post. If you spot an abusive or illegal post then please report it to forumteam@moneysavingexpert.com. Any views are mine and not the official line of MoneySavingExpert.com.

    For free debt advice, contact either : Stepchange, National Debtline, or, CAB.
    For Legal advice see : http://legalbeagles.info/
Welcome to our new Forum!

Our aim is to save you money quickly and easily. We hope you like it!

Forum Team Contact us

Live Stats

2,227Posts Today

8,292Users online

Martin's Twitter
  • RT @iamemmahill: After watching @MartinSLewis I rang my provider & asked them to recalculate my bill &it has gone from £81 to £51 a month.S?

  • Seriously? How is this supporting Uber... IT'S A POLL! I do em ever day on topical subjects. And I've never promote? https://t.co/JrlxaoNLlY

  • RT @Mum2DDSophie: @MartinSLewis Thanks for your advice! I have easily switched from Extra Energy standard tariff to another supplier and wi?

  • Follow Martin