Really worried: Bank closed down my current account

redrosyapple

Hi,

I'm really worried. I sent a letter to my bank 10 days ago re-iterating my hardship case, but instead of replying themselves, I received a letter from a debt recovery company threatening me to go to court. Arghhh!

I have two points:


1, The threatened court action regards my current account. I had an agreed overdraft all the while I had banking facilities. All the time, right up until they withdrew my current account, my overdraft was agreed.

However, my current account went into unauthorised ‘informal’ overdraft after the bank themselves initially made a charge in error.

The bank immediately reversed this initial charge and sent a letter of apology. In this apology letter, they admitted they had applied a charge in error and would not only reimburse this first charge that they admit they made in error, but also would ensure that if anyone went into an unauthorised informal overdraft because of this charge, they would not incur any additional charges.

But I did (go into an unauthorised overdraft because of the first charge they made in error) and they didn't (reimburse me for the cascade of additional charges)! I continue to have additional charges applied every month. I am confident this will be sorted and they will realise their mistake, but now I have had my banking facilities withdrawn.


2, It transpires that I have a letter from the bank stating they withdrew my banking facilities - not as I had assumed over the permanent unauthorised informal overdraft - but because they state my “personal loan remains in arrears”.

Can my bank close down my current account after I found it difficult to repay my personal loan with them? I'm sure I heard this was unlawful, i.e. they shouldn't withdraw banking facilities just because I couldn't pay my debt on a completely different account.


Can anyone direct me to the piece of law I need to quote in my letters to the debt recovery company so I can sound official and knowledgeable (LOL)? Seriously, I need to fend off a court case and I'd appreciate any little help.

Thanks!

natweststaffmember

redrosyapple wrote: »

Hi,

I'm really worried. I sent a letter to my bank 10 days ago re-iterating my hardship case, but instead of replying themselves, I received a letter from a debt recovery company threatening me to go to court. Arghhh!

I have two points:


1, The threatened court action regards my current account. I had an agreed overdraft all the while I had banking facilities. All the time, right up until they withdrew my current account, my overdraft was agreed.

However, my current account went into unauthorised ‘informal’ overdraft after the bank themselves initially made a charge in error.

The bank immediately reversed this initial charge and sent a letter of apology. In this apology letter, they admitted they had applied a charge in error and would not only reimburse this first charge that they admit they made in error, but also would ensure that if anyone went into an unauthorised informal overdraft because of this charge, they would not incur any additional charges.

But I did (go into an unauthorised overdraft because of the first charge they made in error) and they didn't (reimburse me for the cascade of additional charges)! I continue to have additional charges applied every month. I am confident this will be sorted and they will realise their mistake, but now I have had my banking facilities withdrawn.
Which bank is it?
Would the amount of the charges caused by the bank error clear the arrears on the loan?
Does the loan have PPI/insurance?

2, It transpires that I have a letter from the bank stating they withdrew my banking facilities - not as I had assumed over the permanent unauthorised informal overdraft - but because they state my “personal loan remains in arrears”.

Can my bank close down my current account after I found it difficult to repay my personal loan with them? I'm sure I heard this was unlawful, i.e. they shouldn't withdraw banking facilities just because I couldn't pay my debt on a completely different account.
They can close the account but you have written in about financial hardship so they should have looked at that before doing anything with them.

Can anyone direct me to the piece of law I need to quote in my letters to the debt recovery company so I can sound official and knowledgeable (LOL)? Seriously, I need to fend off a court case and I'd appreciate any little help.
Simply tell the DCA that the account is in dispute and you are requesting details from the Original Creditor prior to making any repayment plans with anyone. Furthermore, if you are taken to court you will defend the claim rigourously.
Moreso, under OFT debt collection guidelines they cannot chase a disputed debt. Ask them to put a hold on any collection activity while you gain details,
To the bank that it is from, send a Subject access request for both accounts so that you can determine charges, any PPI etc.etc.
Thanks!

Then update the thread

redrosyapple

Thanks, natweststaffmember!

Since reading your post, I have compiled a letter to the debt collection agency asking proceedings to be stopped due to the account being "in dispute", just like you suggested. Thanks!

Further, I have written a letter to the bank re-iterating my circumstances (no income) and quoting the FSA and their official definition of "hardship", asking the bank to look again into my account, as inspired by what your post.

I'm hoping that quoting the official legal terms will give me the "open sesame"! Thanks once more.

To answer your questions, unfortunately, for once I _didn't_ take out PPI, the account is with First Direct (whom I liked banking with very much), and the total of the charges sadly _wouldn't_ outweigh the arrears on my loan.

Thanks very much for helping. I feel very relieved and much more confident and empowered about the whole legal situation. Phew!

: D

natweststaffmember

redrosyapple wrote: »

Thanks, natweststaffmember!

Since reading your post, I have compiled a letter to the debt collection agency asking proceedings to be stopped due to the account being "in dispute", just like you suggested. Thanks!

Further, I have written a letter to the bank re-iterating my circumstances (no income) and quoting the FSA and their official definition of "hardship", asking the bank to look again into my account, as inspired by what your post.

I'm hoping that quoting the official legal terms will give me the "open sesame"! Thanks once more.

To answer your questions, unfortunately, for once I _didn't_ take out PPI, the account is with First Direct (whom I liked banking with very much), and the total of the charges sadly _wouldn't_ outweigh the arrears on my loan.

Thanks very much for helping. I feel very relieved and much more confident and empowered about the whole legal situation. Phew!

: D

Thanks and keep us updated on your progress.