unauthorised payments

paulking67

Hi there, it's my first post here and I really need some help!

I'm having a little battle with my credit card company. Basically they say I owe over £11000, I dispute the amount owing and asked for copies of all my statements (paid £10 fee) going back to when there was a nill balance on the account. After months of 'stone walling' my letters and phone calls they finally sent the last 18 months statements and again demanded full payment or they'd take me to court. This was back in March and, of course, they have not taken me to court yet.

The thing is, the card company (lloyds TSB) transfered from my current account (also Lloyds TSB) Over £3500 without my consent or agreement over a two and a half year period between 04/04 and 10/06. They just took this money and didn't even inform me. Whats more, these payments often took my current account upto my overdraft limit, and because they didn't even inform me, resulted in some standing orders and DDs not being paid - resulting in further bank charges.

I wonder if anyone knows if this is legal. I'm pretty sure it's not and I am entitled to the money back with interest and compensation and a repayment of bank charges incurred.

I'm pretty sure the Card company are trying to withhold the statements as they know they are in the wrong over these payments taken.

Any help would be of great use. They've registered the debt as a defult now and it's having a bad impact on me. BTW this card was 31.9 apr and the £11000 is all compounded interest. I Will NOT pay the £11K as I'm pretty hacked off with how they have treated me, but accept I might pay a small percentage. (they have offered to settle for 50% already - I declined)

Regards

Paul

noh

Completely legal.
It's called right of set off.
http://www.financial-ombudsman.org.uk/publications/ombudsman-news/40/40_setoff.htm
If you care to look at the Lloyds bank account T+Cs http://www.lloydstsb.com/media/lloydstsb2004/pdfs/cra.pdf
section 30, you will see what you agreed to. A similar condition will be in your credit card T+Cs.


Nigel

NickX

It is legal and is detailed in the Terms and Conditions.

This is why it is recommended to keep any long term debts with Banks separate to those that you hold savings with - otherwise they have the right to raid the savings to pay off the debts.

They are legally obliged to provide you with statements upon request. Why do you dispute the £11,000 ? Can you provide evidence that this amount is incorrect ?

If they have already offered a "Full and Final Settlement" figure of 50% you are definitely on the road to getting it sorted. Why not offer them 33% and see where they go from there ?

Be aware though that even if you agree a "Full and Final Settlement", they can still leave a mark on your credit file that the debt wasn't settled in full, which obviously could impact any future applications for credit.