Bank just helped themselves to money from an account to pay a credit card - help!

Starburst123_2

Hello,

I'd need some advice, please:
my partner had a credit card with Lloyds TSB. Being somewhat unorganised he forgot to make some repayments. We have (unfortunately) a joint account with them as well, which we haven't used in over a year, when the balance was £0.
When he missed his repayments, Lloyds just went ahead and deducted some of the repayments (not even the full amount, just some random figures) from the joint account by tapping into the overdraft.
I only found out when I checked my credit report and saw the subsequent missed payments on the joint account. Lloyds are now slinging us for the interest charges on the overdrawn amount as well.

Obviously we spoke to their call centre and in the end a supervisor said that the money'd been taken without authorisation and would be refunded. :j

Well, that was short lived. I phoned them up a few days later just to confirm this again, and a) there was no note on the account of the conversation and b) they now say they're completely within their right to just help themselves to the money, even if that means tapping into an overdraft.

I'm somewhat beside me (we're only talking £260, but still) - what is the legal situation regarding this? Especially as it now affects my credit rating as well, although I have nothing to do with the credit card, which was solely in my partner's name??? :shocked:

Thank you!

Innocent_Guy

Its called the right to offset.

ILW

Any problems with you OHs finance will affect your credit rating, as you are financially linked through the joint bank account.

chattychappy

I'm surprised the offset can be used where there is an overdraft (and a joint account). Second thoughts, perhaps I shouldn't be.

Maybe someone can confirm those particular points...

Curt.

It can be used if the facility is authorized and not if there is no arranged overdraft.

Curt.

Starburst123 wrote: »

Hello,
I only found out when I checked my credit report and saw the subsequent missed payments on the joint account.

You can't "miss payments" on an overdraft unless you have an arrangement to repay them for money they have demanded back.

I'm somewhat beside me (we're only talking £260, but still) - what is the legal situation regarding this?

They are well within their legal rights and this is the number 1 reason people are told not to have a bank account and credit card from the same provider or entity. (And a lending arm of a bank counts as the same entity).

Especially as it now affects my credit rating as well, although I have nothing to do with the credit card, which was solely in my partner's name??? :shocked:

The financial association is created by the link made between y'all both when you got the joint account. Irrelevant of whether you were zapped in your joint account, that alone would junk your rating down due to the financial link.

bengal-stripe

Starburst123 wrote: »

Being somewhat unorganised he forgot to make some repayments.

If your partner was just disorganised and forgot the payments (more than one, I presume), just ask him to put the joint account, without delay, into credit again.

On the other hand, his financial problems might be deeper than you know, or care to admit. You have a joint account, so his credit rating will reflect on yours.

wesleygibson31

same happened to my partner - and with lloyds tsb aswell. they stuck their grubby little mitts into her account which made the account 250 pounds overdrawn. best of it is the account was supposed to have been closed 8 months earlier - but, surprise, surprise - lloyds tsb didnt action the request at the time. so unbeknown to us the account had still been active all that time. thankfully we had a letter from them that showed wed asked for the account to be closed. in the end they had to put the money back into the account - ha ha - but we had to have a right battle with them and their poxy call centres in mumbai. also, we had the same problem with them denying all knowledge of previous calls/arrangements. theyve got form for it. we went to the complaints dept in uk and complained in the strongest possible terms about their behaviour and they ended up sending a written apology and 100 pound compensation cheque. hate lloyds tsb. worst bank ever

Starburst123_2

Thank you all for your replies!

To cut a long story short Lloyds have now refunded all the money they took + the interest charges:T

Didn't manage to get a compensation cheque (wesleygibson31 I'm in awe!!!) but at least it's off the table and the account is closed!

We complained via the Financial Ombudsman service in the end as well as Lloyds directly and it's finally sorted.
The do have the right to offset, but the F. Ombudsman was not impressed they offset by tapping into our overdraft as well as the atrocious complaint handling. So for everybody who's in a similar situation do not take 'no' for an answer!