Can banks take money without asking?

Mr_Illustrator

Hi everyone,

I posted a similar thread to this on MoneySupermarket and all I got was people saying I’m no better than a thieve so I hope someone can help on here.

I’ll give you the concise version. In 2004 I bought a new car, lost my job a few months later so I couldn't make the payments. The car cost £16,000. When I knew I wasn’t going to be able to make the payments I gave them the car back because that is what they advised. I knew I was still going to be paying for something even after I gave the car back. To my amazement they were demanding OVER £16,000! That’s after they had sold the car at auction. The car was 4 months old in mint condition, less than 1000 miles on the clock. How can they justify charging me more than what the car was worth, even after I gave them it back. This is actually irrelevant to my question, I just want you to know where I’m coming from when I say I’ve never paid them a penny... and I never will. My credit rating is totally ruined because of this and for the last 4 years I haven’t been able to even open a bank account. I’ve forgot to mention the creditors were Black Horse.

I recently applied for a new bank account with Lloyds TSB so I could get a debit card, I’ve not had a debit card in 4 years and I really need one. Anyway, to my surprise they have given me a proper bank account with the long awaited debit card, so my question is this – Do you think that Lloyds TSB have given me the account just so they can take my money to pay the Black Horse debt? I know there is something called “Set Off” where a bank can take money without asking. Plus, do I still owe them the money? It’s been through more Debt Collection agencies in 4 years than I can remember, wouldn’t they have bought the debt off black horse?

Any advice would be great.

Thanks

Jvic28

Have you asked Blackhorse how you owe so much money. Surely they should send you some sort of statement as to how the figure arose...

angelflower_2

If the loan was for £16k then there will be administration charges and some interest due on it (you should see how much on the original documentation).

You need to get in writing how much the car sold for. At auction it is likely to have sold for way under the original price (prob at least 25%). You will be liable for this difference.

The fact that you have said you never intend paying them any money is not irrelevant and they will continue to chase you for this.

Not sure about the off set. I very much doubt that they would be allowed to do this otherwise we would all have had issues surrounding this with our debt and I am not aware of this having happened to anyone. (only situation I can think of is where you have two bank accounts with same bank and poss a loan or other product with them)

I would advise you to contact Black Horse (whom I have my largest debt with and have found them to be very reasonable) and ask for copies of the paperwork showing the car sale price and the amount they are now chasing you for. It may be that if you are back on your feet now you could offer them a final settlement figure which is lower and you can put this episode behind you.

Sorry I cant be more positive in terms of writing the whole lot off!!

RAS

Banks can and do offset the cost of a loan aginst money in bank accounts. We probably get one person a week on here who is having problems with this. it is why we always advise newbies to set up another account which is not related to their creditors. In this situation it may rather depend on whether Black Horse and Lloyds TSB have the same licence.

Jvic28

Yeh, I think that's something that needs establishing 1st. Does anyone know if Blackhorse are linked to Lloyds TSB?

DES_1001

If you keep your head down and don't contact them, then in 2010 the it may well become statue barred!

Mr_Illustrator

Thank for your replies everyone.

Do I still owe Black Horse now that I’m being chased by some other DCA. I thought that debt collection agencies bought the debt for a lot less and then tried getting the full amount themselves. So do I now owe the DCA? If Black Horse have nothing to do with the debt now surly I would be ok the use the bank account!?



Thanks

Jvic28

They may not have bought the debt, but may be chasing it on behalf of Blackhorse. That's what's happened with some of mine. Every now and again I still get a bill from the original creditor or they move them to a different DCA.

poorandindenial

Ifv you get your credit reference file you should be able to see who currently has your debt

type credit reference into the search at www.ico.gov.uk for the paper copy route (costs £2) or sign up for a free trial at experian or somewhere (through Quidco if they are still doing cashback on it) but don't forget to cancel the free trial. There are three agencies and not all hold the same info.