Frozen bank account

ndawson

Hi Im wondering if anyone can help? I owe a credit card bill of approx 4k to the Nationwide, I have written to them saying I am seeking advice of an IVA (I have other debts), I have received a letter today saying, they have frozen my bank account and unless I pay in full in 14 days they will take the balance of my account to offset the debt (1k), I will ring them tomorrow, but wondered where I stand as I now do not have a penny, I have another account with them with my husband with 400.00 in, will they also freeze this? Any advice please....... I am desperate.

IF

Hi you may get a better response here, The IVA board click below:-

http://forums.moneysavingexpert.com/forumdisplay.html?f=159

sizzler

good reply if:)

fermi

Have a look at:

http://www.moneysavingexpert.com/banking/setting-off#prevent

Banks are only supposed to use money from a savings or current account if you’ve seriously defaulted and not been in touch to discuss how to get back on in control.

Complain to the Ombudsman

If you feel your bank has left you in the lurch and you’ve complained to no avail, then do ensure you write to the free Financial Ombudsman Service.

Its job is to impartially adjudicate on problems between banks and customers. While you can't challenge the fact it used setting-off, as that's a legal right, it will take into account any discussion you've had with your bank about repaying the debt and whether you've 'been treated fairly' or put in hardship due to it.

For full details on how the Ombudsman can help, including free template letters see the Financial Fight Back guide.

Also there is some very useful info here from the FOS:

http://www.financial-ombudsman.org.uk/publications/ombudsman-news/40/40_setoff.htm

Obviously, at first you have to talk to the bank and emphasise that you are trying to sort things out, and that you feel it is inappropriate for the to use their right of set-off.

That it would put you in financial hardship.

And perhaps that if they should do so, then you would be prepared to get the FOS involved.

They probably won't listen, but you never know.

ndawson

Hi again, had a review, cant find out about them freezing my account and getting them to stop it, mortgage is due out of this account in 3 days, help?

My situation - currently received advice (paid for it - bad mistake) I have personal debt of approx 4k and business debt (too long to go into but I signed a personal guarantee with an ex business partner and he has declared bankrupt) the business debt is mainly to the bank but is a whopping approx 240k to bank, 20k of other personal guarantees, god knows yet what the tax man will be after. I have a small house with approx 20-25k equity which is in joint names with my hubby, the business debt is nothing to do with him. I have taken advice and they have suggested trying to re mortgage to stop the bank forcing me to sell the house and didnt really say wehter bankrubptcy or IVA is best for me, I am not avoiding anyone I owe, I have been in constant touch with the bank for the business debt (HSBC) this last blow from the nationwide freezing my account feels like the nail in my coffin, I cant believe that I am probably making my husband, sons homless and I havent even got a penny now for anything, I had an excellent credit record before and paid all my bills, I just dont know what to do next or where to go long term or right now with my issue with the Nationwide.....

frenchmaiden

Hi I am not a legal expert however have just had three accounts frozen too - I thought the creditor would have to apply for a third party debt order to freeze your accounts - have they already done this?

ndawson

Not as far as I am aware?

sandraroffey

nationwide did this to my son, for a credit card debt of less than £800. and the only money going into the account that they froze and were going to take any money that came into that account, off off the debt, was his income support. they really are heartless sometimes.

beentheredonethatstilhere

While you can I would remove all money from your accounts. Cancel all your DD. Get a new basic bank account, the Co-op cashminder and Barclays Cash account are good accounts. Let your mortgage people know that you are changing account nd will be paying the mortgage money over the counter until it is sorted and ask for bank details to do that.

ndawson

Thank you all, the result from the nationwide today was that they have taken out £604.00 from my account and unfroze the rest, they have also said that I have to pay a minimum of 3% of my debt every month otherwise they will freeze it again. They werent interested that I was seeking advice for an IVA or anything else. My plan is to close this account now once I have got a new Basic account elsewhere, this is sad really considering I have been an excellent customer for over 21 years and have never been overdrawn, shows that the one time you may need support they dont care at all. Thank you all so much for your support.