Banks moving funds from your current account to pay arrears on your credit card

stapeley

The advice has always been have a parachute account if you are getting in to difficulties, one with no overdraft !

cho8925873

I have ltd company account with lloyds tsb am in process of setting up dmp have just opened another account with co op with whom we owe nothing as all husbands earnings go into ltd account am concerned about what earlier posting said and that lloyds took money out to pay debt have been told this is not allowed can someone clarify or this is going to cause me alot of problems

bathgatebuyer

The Halifax did this with me before - ironically I only discovered it when I went into the branch to pay my credit card bill and there was no money in my current account!

It's tucked away in the terms and conditions, although I think if you're on benefits there is a rule somewhere which prevents them doing this. I may be wrong though. Perhaps someone else can confirm.

mcjordi

it should prevent them put often it doesnt when i was on benefits a while back halifax took every penny of it to pay a cc i had with them, i played merry hell in the branch i eventually got my money back after 3 hours of refusing to leave

Bismarck

whatatwit wrote: »

In view of what's in their terms and conditions, I would think that they could take 'an available balance'

So if this goes into an agreed overdraft then I don't see why not.

so if they take the money from a current account agreed overdraft...and then pull the overdraft as it's repayable on demand....what happens next?

there has to be something wrong in this? it's one thing taking the money that is there...(not saying it's great just - I can see a logic ) but to do this is a different thing ,surely?