Bank took wage even though they'd closed my account

AdrianEvans

So HSBC recently closed my accounts without notice. It was overdrawn at the time. This I could deal with but later in the month I hadn't gotten a new account setup anywhere so I told my personnel manager and he said he would pay me by cash that month. I also went in branch and they told me that in this situation, when money gets paid into a closed account it will just get returned to sender. So I got paid by cash and thought that everything would be simple.

Thing is. HSBC didn't return the money to my work so I called them. They said that they didn't want to return the money but after explaining that I'd informed my employer that my account was closed and I'd been paid by cash they said they would return the money but minus £200 as part payment for the overdraft. They are sending me a cheque in the post...

Now my work are !!!!ed off because they've effectively paid me twice. Obviously I can give them the money that I'm getting back from the bank via cheque. However, because of the difference they will be paying me £50 less for the next four months.

Are the bank allowed to do this?

please advice

RAS

They are allowed to off-set any income into an account against any debts, which is why we always tell people to move to new accounts.

Unless you have a verifiable record that the bank said the money would be returned to the employer, you cant do much about it.

have you considered reclaiming any bank charges? Might not help now, but in the future.

A_Nice_Englishman

So in effect your employer has given you an interest free loan over four months to pay off part of your debts? How much interest would the bank have charged you?