Do you have money worries and a loan or credit card with your bank?

waterspring

Fascinated by HSBC,s observation of the lending code. To cut a long story short, I have two accounts in dispute with HSBC one my current account which was attracting charges of up to £250 per month with an O:mad:D facility of £1500 the other in joint name with my wife a flexi loan limit £3000. I always paid the flexi loan instalments from my current account, which due the high charges on charges is now almost all charges. HSBC started rejecting monthly payments to Flexi Loan. I advised HSBC that accounts are now in dispute and referred to FOS on basis of constructive reduction of facilities. Some payments have continued to be paid to Flexi Loan a small number of instalments are unpaid.

In August without notice both before and after the event a small credit £30 odd was taken from our joint emergency account and it was left some £200 overdrawn. My wifes personal account within agreed overdraft terms of £1k was debited with £80 and left OD to the extent of £50 odd. So much for HSBC's observation of the agreed lending code with the FSA! This is a classic example of Set Off being takem in one case from a debit balance and the other from a credit balance leaving an account substantially in debit. To my mind this cannot be correct.:mad:

tracymas

i have just experienced this and i am fuming!
I won a PPI case against the RBOS and they sent me a letter stating that they had paid the money into my current account. I no longer have an account with them, however I do have an existing loan.
they offset all the money against the loan without telling me. I telephoned them and they asked me how much I want back and when i said the whole lot, they then said no that this is normal procedure.
Why are they allowed to do this?
This is the whole reason I stopped banking with them.
i have contacted the ombudsman who was dealing with the complaint originally, so awaiting a reply.

has anyone any experience of this?:mad:

mani99

Hi all, as posted in my own thread as I didnt know this one existed:

I used to have a BarclayCard which I couldnt manage to keep up repayments with due to losing my job. I recently got a new job and also opened a new basic account with Barclays as I wanted to get away from Halifax (some of you are already shaking your heads).

Well anyway, got my first salary into my account which I was very happy about and had already planned how I would pay my debts back and save, but without any notice Barclays decided it would take almost all of it. I got left with £50 which I didnt know at the time so filled up the car with £49.84 worth of fuel! That leaves me with 16p for the rest of the month.

I still have my mortgage to pay, plus other bills and also have to get to work some how. To say Im angry is an understatement, but parts of me feels like simply giving up.

I spoke to Barclays, they weren't very helpful and said they might refund some of the money but first I would have to send the documentation to prove my mortage/bills etc. My mortgage was due to leave my account today which it wont now.

Thanks Barclays.

Any advice would be more than helpful.

udydudy

does teh right of Set off apply to ISA accounts as well?? this would result in the saver losing his tax benefits of ISA as the money cannot be restored once removed?? hope someone can answer this question.

gaily

I've acutally had a positive experience with off setting, in that on one of my accounts, it was due to go over the o/d limit, and had a DD payment due out the day before payday.

The bank checked my accounts, and could see that there was money in another of my accounts - a savings account, with no normal activity on it, and transferred the money over to allow me to honour my DD payment.

They then phoned me to advise what they had done, and apologise for doing so !?! but thay had saved me bounced DD charges, and going over my limit charges, so although i then had to transfer the savings money back the following day when I got paid, it was a very pleseant experience!!:T:T:A

TZA

I was in exactly the same position myself a few months ago after agreeing that barclaycard should take £100 from my account each month until the balance was paid off they still went ahead and took £500 out of my account!?? why?!! I was fuming, I was then unable to pay my rent and council tax. Called them up and was given the usual 'Well if you can provide us with proof blah blah blah' which is absolutely useless when you have already bounced payments. I ended up borrowing money from my parents to tide me over as I simply could not bare to speak to them over the phone again but realise this isnt always an option for some people.
I would suggest that in the short term you get all the documents together as they have suggested to try and get your money back and consider either entering into a DMP with CCCS or National Debt Line and taking out a bank account with another provider to prevent this happening in the future. Hopefully they put some legislation in place to make this practice illegal soon! Also if you have incurred any overlimit and/or late payment fees with Barclaycard (or any company you have had credit cards with) its definitely worth claiming them back to ofset against your outstanding balance.

flabbergasted22

I've been the victim of this today. I had no idea that the bank could transfer money from my individual account to my joint account with my husband even though I had spoken by phone and had told them that I was negotiating with my mortgage lender to get things back in order. They then asked if they could take the £75 from my individual account and I explained it was for food/emergencies with 3 children to consider until my payday on 28th Feb. Still they took it. I'll be moving my individual account over the next few days. What a shocking thing to do. I guess at least forewarned now! It already bothered me that bank employees can see my spending footsteps but now it seems we are under suspicion of potential default at all times. Sigh...

bertman

We had an agreement with the Halifax to pay lower payments for just 3 months, the first month they took money from a savings account which had money from the sale of my business which was earmarked to pay the taxman. I called and they looked on their computer and realised their mistake and transferred it back but it took a week. Month 2 and they did it again..... And at the same time added £12.00 overlimit fee as the interest took the balance over my limit and £12.00 missed payment
Guess what??? Month 3 they did this again........ Halifax claim to help but are just useless.....

tylerdurden

If I have a small business account and a current accounts does anyone know if the setting off rules apply?

ceejaydee23

When i was trying to reduce payments on my HSBC credit card, I was told that i had £200 in an overdraft facility that they could take money from. I said oh no you wont! I'm trying to get out of debt not create more! Thankfully she didnt do it.