Bank Stolen Money

missdotty

We are with payplan, it all starts this month! We, as reccomended opened a new bank account with Llyods TSB, transfered all debits from our original HSBC account, all fine so far..... But (even though the original HSBC bank account is registered with payplan as a debt) we received a letter from HSBC today saying they were closing our account, not to use the debit/ Cheque cards (like we were going to anyway!). The letter informing us had the 5th as a deadline date but we didnt get the letter until the 6th, (sneaky), all well and good you'd think but NO. We then checked the account online to find that £541
had been taken by HSBC from The Llyods account, which by the way is £4 over the amount that would've cleared the overdraft. How can they do this? We haven't given permission for them to take anything. Surely this can't be legal?:eek:

Voyager2002

Extraordinary!

First, ask Lloyds to explain why they allowed 541 to go out. Then come back and let's hope that someone will know how to challenge their reason.

moongarden

how did HSBC know you had a lloyds account?
(they shouldn't have been able to find it via a credit check if its a basic bank account)

someone must have given them the account details - did you tell HSBC you would pay them so much a month by direct debit?

they have to have your authority to draw money from your account - unless payplan have power of atourney for you and they have given the authority - or unless a court orders it.

i agree with voyager - call lloyds and tell them £541 has been stolen from your account and that you do not believe HSBC had the authority to take this money and
you want lloyds to provide you with proof that HSBC had any authority.

they will either be able to prove it - in which case you are stuck with it
or
they will not be able to prove it - in which case they have allowed an unauthorised person to draw money from your account - theft - and they must put it back for you.

moongarden

also have you worked out and started to claim back all your unfair charges?

payplan won't do this for you and in my case i'm looking at over £900 from the past 6 years

mattp_3

sadly the bank is entitled to take money from your current account if you are in arrears with another debt held with that bank - its called the Right to Offset

millsee

mattp wrote:

sadly the bank is entitled to take money from your current account if you are in arrears with another debt held with that bank - its called the Right to Offset

Correct.

However, OP did say that HSBC had taken money from the LTSB account.

Kevicho

Have you let payplan know the situation as this will likely effect the plan they have for you and also they may be able to clarify the legality of it

missdotty

Hi,
I went to Lloyds TSB today to find out how this could have happened. To put it in a nutshell they made a mistake when we first opened account, they ticked a box on a form delcaring that we wished to close the HSBC account,(at the time we made a point of saying we would close the account ourselves when we were ready, as pay pal had reccomended this to us) which in turn gave HSBC the right to transfer funds over to clear the overdraft,(this is where they got the account number from we guess the transferal of debits) Even though they have as much admited that it is their mistake all they can (or will) do is offer us an overdraft, but no hope of seeing my money again. I have been told to collect the final response letter, then the financial ombudsman should take the case the general consensus is that what has happened is wrong if not illegal but we'll never see our money again.

missdotty

oh and yes let payplan know they said never heard of this before and most likley is illegal but stand little to no chance of getting it back

beanielou

Not a lot that I can say Missdotty but I do feel for you.
What a ***** up.I think you are remarkably calm!!
Hope all goes well from here on in.