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

czorlutuna

Hi, I have just had experience of this with Natwest. I was officiailly made bankrupt yesterday and was in the process of informing all of my creditors. I had a Natwest Loan and Credit card as well as banking with them and had no idea that they were taking money out of my account towards the loan as soon as any became available. This included my child benefit and my sons maintenance money last month, leaving me with no money at all for that month. I have had to rely on my husband to help me out. I have since changed banks, but I am extremely angry that they took my benefits without my knowlege or prior warning. They have no right to my child benefit or my sons maintenance. This matter needs to be dealt with appropriately as now we have gone bankrupt I doubt whether I will ever see that money again even though it was rightfully mine and the banks had letters from me explaining we were looking at either an IVA or bankruptcy, and knew I was in no position to pay anything towards the debts, having been made redundant last year I have no income at all, apart from my husbands.

MUM_OF_4_COUNTING_HUBBY

Just after getting married my bank decided to take £950 out of my Barclays current account which was in my maiden name still as hadnt got round to changing it, from a cheque that was only put in the day before and had not even cleared, to pay Barclaycard which was in my married name without any notification, never did get a penny back!! i really didnt think they could take money from one account to another with different surnames.

Josie64

name and shame - guess who yes LLoyds TSB , me and hubby still have a credit card each and joint overdraft and hubby has a loan (no agreement was signed for this loan as it was done on the internet, the loan was taken out to pay the overdraft off, I thought that wasn't allowed?) and we were eventually advised to close the joint account by citizen's advice. we now pay these four accounts off at a £1 month.

so we moved to alliance and leicester , so last year when we were on job seekers allowance and now were are on working tax credit , and loads of times since then right up to last week, they keep re-arranging direct debits to make it look as though we don't have enough money in when we do, so then they charge which takes us over the overdraft limit, so we get charged again! we have contacted them about the law which says they can't take charges from an account funded by benefits and alliance and leicester say they have never heard of it , just last month they took £50 in charges in one week so now we are short again for direct debits. What can we do , go to the ombudsman?

keith253

LloydsTSB took several payments from my current account to pay my LloydsTSB credit card. This resulted in failed direct debits to other companies and attracted a huge amount in charges. I have made my claim against the bank for these charges over a year ago and am awaiting the decision - the charges are over £8,000!

dylansmum

This happened to OH - but he was a victim of ID fraud, duly reported to police (who can' take action unless banks pursue) and Barclays. Fraudster owed 3K to barclaycard taken out in OH's name (with gender change). As OH had account with barclays they took some cash form his account. it took one year and finiancial ombudsman to get it back. Stressful and horrendous customer 'services' from barclays.

suelees1

daallen wrote: »

I was a victim of this setting off just last week, I'm on benefits and they had been paid in on the Tuesday and the bank took £142 of my £150 which included child benefit and child tax credit, when i contacted the bank they where totally uncaring, if ordinary people did things like this it would be against the law, on a previous occasion I'd made a payment and they still took money from me, it's disgusting, to think that this can happen legally

I'n not at work so can't check this out but this link gives some info about the "first right of appropriaton". Unfortunately I can't check it through to confirm it's correct as I'm not at work but this might help some people when the banks try to offset benefits (although techincally tax credits are not a benefit so it might not be relevant in this case)

http://www.corby.gov.uk/SupportingDocs/docs.supporting.released.2008-3.21193.Corby%20%20right%20of%20appropriation.pdf

bettyanne6

Hi-I have a joint loan with my ex-husband owed to LLoyds and which isnt being paid at the moment due to divorce proceedings-was advised last Sept by Lloyds themselves to not use my current account in my single name where my wages,child benefit and tax credits get paid into as they loan people would just empty it to pay the loan!!!!! I didnt need telling twice and changed to using my Nationwide account-just in time!!!! the only problem is I only have a cashcard now not a debit card-but small price to pay!!!

Bubblepops

Hi,

Im currently not in that bad a financial situation, I learnt my lesson well & truly -helped along by the little 'darlings' at HSBC, and got my fingers well and truly burned:mad: (another story altogether!).

I bank with Llloyds, and have two loans (one fairly small)with them, along with a fairly hefty overdraft.

I've never defaulted on either loan, and have steadily increased my overdraft in the past 18 months, but stopped this in September when I took out the second (small) loan. I basically have a freeze on any more credit with them, which is perfectly fine with me - the loan was only to cover my housemates' temporary unemployment.

Although I'm up to date with all my lloyds payments, along with all my direct debits, etc, I do only make the minimum payments to my lloyds loans, and am not currently in a position to reduce my overdraft steadily (plan to in the next 12 months or so), I am a little worried that they could just withdraw my overdraft, which is over half of my wage amount?

I appreciate it isn't a big deal compared to a lot of people's worries, but I just wondered what you friendly lot's advice would be?

Should I change my current a/c to be safe? To be honest, I don't know which banks to trust anymore, and I just want a quiet life!! Don't we all!!

Thanx for reading my waffle, and good luck to everyone who's having so many problems, stay strong, and kick some a**e!!!!!!!!!

x

Panther1_2

brookway wrote: »

I bank with Lloyds and they have taken money from a joint account to pay my credit card. If my partner hadn't noticed that this had gone from our joint acoount and paid more monies in we would have defaulted on our mortgage. We us the joint account to pay all our household bills and nothing else. Why should my partner be responsible for my debts Grrrrrrrrrrrrrrrr the banks do annoy me!!!!!!!!

Have had similar experiences with Lloyds over the past 4 months. I am currently trying to push a financial hardship claim trough on 3 accounts for bank charges with the FOS. Last week they took my credit card payment from our joint account - my wife complained and they repaid it and took the payment from my bills account leaving no money to cover the remaining bills or food.

My experiences with Lloyds over the past 6 months have been truly horrendous and I look forward to them being brought to task in the near future!

SallyCinnamon

bettyanne6 wrote: »

Hi-I have a joint loan with my ex-husband owed to LLoyds and which isnt being paid at the moment due to divorce proceedings-was advised last Sept by Lloyds themselves to not use my current account in my single name where my wages,child benefit and tax credits get paid into as they loan people would just empty it to pay the loan!!!!! I didnt need telling twice and changed to using my Nationwide account-just in time!!!! the only problem is I only have a cashcard now not a debit card-but small price to pay!!!

I had a similar warning from the Halifax when I went in to set up a regular saver account for my 4 month old daughter. I have a joint account there with my ex which I've been trying to close for ages - unfortunately as this requires action on my exes part, i.e. he needs to sign and submit a form taking himself off the account (which is 67p in credit and not used at all) I haven't been able to do this.

The Halifax warned me that if my ex got into trouble in his personal account, because we're linked by the unused joint account, they could access the child account as I was the trustee - absolutely shocking to think that they would consider doing this.

Thankfully they did warn me and my partner is now the trustee of her account.