Using bank accounts of banks you owe money to

Northernbird_2

I have a current account with a bank I owe money to. I have arrangements with them to pay back what I owe, and that plan has been running for about 2 and a half years. The current account is still running as normal and it just sits there.

We'd like to start using it, as we may be able to get the cheque books back (it's more for OH than me as he needs cheques). I know people always say to open up an account with someone you don't owe money to, but how do they go about taking money from your account to repay your debts? Is it only when you're not paying anything etc? Can they just do it without warning?

Has it happened to anyone?

file_wizzard

Yes they can "raid" funds at anytime they see fit ( see T&C's for your current account)

Best advice is to move your incoming transactions to another account but continue to fund the original current account to repay the debt

Northernbird_2

Thanks for the quick response.

The debt is paid through CCCS so the account isn't in use at all at the moment. They've moved the debt to a special department and doesn't show up on my account screens at all.

Do you still think they could raid my account?

file_wizzard

Northernbird wrote:

Thanks for the quick response.

The debt is paid through CCCS so the account isn't in use at all at the moment. They've moved the debt to a special department and doesn't show up on my account screens at all.

Do you still think they could raid my account?

By all rights they shouldn’t if you have a set agreement in place through the CCCS, however there is nothing in real terms to stop them invoking the original T&C's and claiming what they are owed.

I think to be on the safe side try to open a new account and just pay what you need to into the original one.

Both Natwest & Lloyds will normally upgrade basic accounts after 6 months to full current accounts provided the account is managed sensibly