Help! can credit card company take money from bank account?

sonic25

My credit card and bank account are with the same company, halifax.
ive not payed anything off my credit card for a while and recieved a letter saying if i dont make min payment they will take money from any other accounts i have with them. im in my overdraft with my bank account, can they still take money?

any help would be great, im really worried. Thanks.

[Deleted User]

Yes. It's the right of offset. If you have money in your accounts, they can use it to pay what you owe them. If you are within an authorised overdraft that still has some headroom, I would think they can still do this.

fozmcfc

Yes they can, its called the right to offset IIRC.

Basically they can even make you go into an unauthorised overdraft and start charging you fees for that as well.

You are treading a very thin line, they could well take the money and remove the overdraft and then you could be paying fee for being overdrawn and also for still being behind on the card.

You need to sort out some sort of repayment with them ASAP.

Hax

The banks have the right to offset debt - so, if you owe money on your credit card and the account is delinquent, they are within their rights to try and reclaim it from your current account.

I would suggest opening a basic account, getting any monies paid into the new account and moving your bills to be collected from the new account.

That will safeguard your income for the short-term. For the long-term, you need to come up with a way of meeting the payments on your accounts. I would suggest visiting the Debt Free Wannabe section of these forums for advice and/or seeking help from one of the debt help charities such as CCCS, CAB or Payplan.

KingElvis

Yep, they can and you can bet your last dollar they will.

BenL

They can see from your current account statement when you get paid and they will be lining themselves up for 1st dibs on your next wage packet.

Ben

bengal-stripe

The bank has certainly the right to “offset”, take money from other accounts. When you have money in any of your accounts, the bank can take it to cover your debts at another account with the same bank.

Why did you let it come so far? For what it’s worth, don’t bury your head in the sand, contact one of the debt charities to sort out your financial problems.

sonic25

right ok, my overdraft is £1000 and im in it all the time, all the money that goes in goes out is for rent and bills, i dont think theres anything for them to take but will they still do it if its only £50. i really want to start paying off credit card but not been able to for so long and now out of the blue cause not heard anything for ages got this letter, im so worried that what little money i do have access to to keep on top of things is gunna be taken. i cant take this anymore.

KingElvis

^^ they will take the money before your rent and bills are paid, have no fear of that.

Hax

As I said above, you need to seek help and sort out a repayment plan - either a DMP through one of the charities or an arrangement to pay with the bank. This isn't going to just go away and you need to be communicating with the bank to try and prevent it going further.

BAILEYS6904

You might want to post a statement of affairs on the Debt Free Wannabe board and see if anyone can make some suggestions