can the bank legally take £10,000 out of my fiance's account if half of the money ...

BOB_A_H

stebiz wrote: »

I'm still trying to work out how 'Please help as this is very very close to destroying our children's Christmas' translates into the above.

I'm sorry but I have nothing but contempt the the banking industry which we own. It is built on greed. As for the bank 'allegedly' removing 10k from an account the day after they had received and signed for a letter, informing them that the client is going on a DMP. I'm sure the Banking Ombudsman would love to investigate.

Stebiz

Yea Stebiz, confused by this as well.

michael1983l

I have a small glimmer of hope for you!!!!

The bank does not have priority over other creditors unless a loan from the bank has been secured on the client's home. Even if the client's account is overdrawn, s/he has the right to decide how any deposit going into the account, for example, wages, should be used. This is called first right of appropriation. If the bank refuses to accept the client's instructions, s/he could consider changing banks. If the client does not instruct the bank about the use of any money going into the account, the bank will use it to pay off her/his debt to the bank.

If you had told them prior to the deposit going in and they accepted you could do it without taking your money then you can use the first right of appropriation clause. Unfortunatly the bank does not have to accept this and as you have already done the deed is unlikely to work but it is worth a try. Good luck.

This info has come directly from CAB

michael1983l

169

If a client pays income into an overdrawn current account, the bank will usually use it to reduce the overdraft before using it to pay off other debts. However, even if a client's account is overdrawn, s/he has the right to choose how a deposit made into it will be used. This is called the first right of appropriation. The client should instruct the bank or building society that payments made into her/his account are to be used to pay for specific items. This is called earmarking. The bank or building society has to act on the client's instructions and cannot refuse on the grounds that the account is overdrawn. However, the client should remember that charges will still be accruing on the overdraft. A bank or building society is unlikely to allow a client to use the first right of appropriation for long, and may close the client's account. In Scotland, in practice, the bank or building society might refuse to follow the client's instructions.

170

If a client wishes to use the first right of appropriation, s/he should give the bank or building society written instructions and keep a copy in case there is any dispute later. The client may wish to ask the bank or building society for a written acknowledgment of her/his instructions. The client should either give the bank or building society her/his instructions before the payment is made into her/his account or at the time s/he makes a deposit. The client's instructions should specify the amount of the deposit being made into her/his account and specify how s/he wants that deposit to be used (but there are [URL="file:///D:/13101000.HTM#94"]special rules in Scotland[/URL]).
For example, the client's instructions could read as follows:-
'I encose a cheque for £150 to be paid into my current account number 00665533 (or, 'On or around June 20th my wages will be paid into my current account number 00665533'). I am exercising my first right of appropriation over these funds and wish you to pay the following items from them:-
£75 Cheque number 501 payable to cash
£23 Standing order payable to British Gas on the 25th of the month
£52 Direct Debit payable to npower on the 30th of the month'.

171

In the written instructions s/he gives the bank, the client should ensure that s/he makes it clear if s/he wishes any regular payments or future deposits to the account to be used to pay for specific items. If the client does not make this clear, s/he will have to give the bank new instructions each time a deposit is made.

172

If there are any items which the client no longer wishes to pay from the account, or which s/he does not have sufficient funds to cover, s/he should give the bank separate cancellation instructions. This is because first right of appropriation does not stop the bank paying items in addition to those specified by the client. If the client does not issue cancellation instructions, the bank may return the items as unpaid, which may also incur charges. However, payments from the client's account to re-pay a loan with the same bank cannot be cancelled. The client should not issue any cheques which s/he does not wish to be paid.