Can Barclays take my cash?

polly30

I have 3 accounts with Barclays Bank, one premier current account which has a 4k overdraft limit - I am usually in my overdraft every month but rarely go over it. I have a basic current account with no overdraft and an ISA. I also have a Barclaycard which is on a 0% BT offer and i pay it regularly every month - never missed a payment.

My partner has just transferred 30k into my basic current account pending a transaction next week for buying our new house. This cash is my deposit.

I have being hearing some horror stories about Barclays just taking cash from peoples account when they are owed money and now im worried they could do this with me. Would they have any reason to do this and legally can they do it?

Any advice would be appreciated, i may be being paranoid but im stressed out at the thought of this happeneing and my house falling through!

thanks

CLAPTON

they can withdraw an OD facility at anytime but unless you are mishandling it (i.e. go above the authorised limit ) then there is no specific reason why they would do so

polly30

CLAPTON wrote: »

they can withdraw an OD facility at anytime but unless you are mishandling it (i.e. go above the authorised limit ) then there is no specific reason why they would do so

Thanks, i have only gon over my overdraft perhaps twice this year. Hopefully the money will be fine and i am just being over anxious!

speedbird1973

You won't have a problem. If you've been handling your O/D and using it all the time I doubt they'll cancel it.. you're making them money.

They can't offset unless you're in arrears - and you're not at the moment. Even then you have to be well behind with your repayments.

vaporate

If you're really worried, why dont you just lower your OD limit?

Do you really need that 4k overdraft?

NickX

I think you are worrying unnecessarily.

Barclays will only use their "right to offset" and claim your funds to pay off other debts if those debts are in default. There is nothing in your post to suggest that this is the case.

Enjoy your new house :beer:

bingy_burge

Its 50/50 if your you have been over it in the last year 6 months.

O/H dad have a 3.5k o/d and 3k in another account with halifax and they suddenly decided to remove the o/d and pay it off.

NickX

bingy_burge wrote: »

O/H dad have a 3.5k o/d and 3k in another account with halifax and they suddenly decided to remove the o/d and pay it off.

Hold on, they are not going to just remove the postive balance and pay the overdraft off.

They have to request repayment of the overdraft first, and only upon failing to make that repayment would they activate their "right to offset".

If the OPs overdraft and Credit Cards are not overlimit or in arrears, Barclays have no right to those funds and any such action would be viewed very dimly by the FOS.

wolf475

Apologies for appearing thick but this is something which has worried me for a long time. I bank with HBOS and I also have a large balance on my HBOS credit card (£400 below my credit limit) and stopped using the card earlier this year, closing it when the interest rate was increased and am paying off the balance at the previous interest rate - I pay more than the minimum payment every month and have never missed or been late with a payment. I have just been made redundant and will receive three months pay in lieu of notice next week - I'm worried that this money could be taken to reduce my credit card bill.

For clarification, offset only occurs when you are in arrears or default? Is that correct?

thanks.

NickX

wolf475 wrote: »

For clarification, offset only occurs when you are in arrears or default? Is that correct?

That is correct, there is some "scare mongering" going on here.

However, if you have been made redundant and suspect problems further down the line, it may be prudent to keep your redundancy pay in a bank to whom you do not owe any funds to.

wolf475

NickX wrote: »

That is correct, there is some "scare mongering" going on here.

However, if you have been made redundant and suspect problems further down the line, it may be prudent to keep your redundancy pay in a bank to whom you do not owe any funds to.

Thanks for the reply Nick - obviously I hope not to encounter any problems in relation to being out of work too long, but I am looking into setting up a savings account in another bank and transferring this money into it.