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

Tixy

You need to sort out opening a new bank account asap with a bank you don't owe any money to and get your wages/income moved to it. Only then can you start to negotiate with them with regards to making a payment arrangement to repay your overdraft and credit card.

patman99

Ask yourself this, if you were a bank and one of your customers had a bank account and a credit card, then spent a few quid on the cc then decided not to pay the debt, what would your reaction be?.

Write and offer £1 per month. I think they will have to accept this.
Also open an account elsewhere and use that to deposit your salary in, and pay bills out of.

xkittyxcatx

Although it may prompt boos and hisses I used to work for HBOS collections. I'll be honest, you are lucky you got letter. A year ago they would just do it.

Reports are run every day and people check how much you have in your current and any savings accounts, although they can't touch ISAs. If they do right of set off and you ring them I am under the impression that now they will reverse it without question. However, harsher collectors may try and make you take proof of your bills into your local branch. Branches can refund the right of set off there and then. Over the phone it can take a week.

I have never known them to take you over your limit, although obviously if you then have DDs these could bounce because they have taken the money.

If you can't pay your debts, never bank where they are.

noviceneedsadvice

I'll back that last comment up! I'm a long term Halifax customer and about 8 years ago was in arrears on my Visa, pay day arrived and I noticed something around £700 had been taken from my account. Turn out Halifax had taken it to put the card back within limit and that months minimum payment.

I didn't get a letter and was only told when I phoned them.

Like everyone else says, get an account with another bank where you owe nothing, and don't get an overdraft on it. From what I read Barclays and Co-Op offer basic bank accounts to pretty much anyone, though don't quote me on that.

sonic25

ok thanks guys, but they asking for min payment which is whole balance, which is nearly £4000. what if i cant open another bank account? do you really think they will accept £1 a month? i really do wanna get debts paid off but when you have no money spare or very little its hard. if they start taking any money ive got going in im just gunna get in debt with evertihng else that im on top of, rent and essential bills etc. really app any more advice, thanks.

Tixy

Hi

You will be able to open a new bank account. You need to apply for a basic bank account with another bank- anyone can get these. You need to do this straight away and move across any wages/benefits to the new account.

They don't have to accept a £1 payment no.
But what they should accept is a reasonable offer based on what you can afford (that could be £1 but may well be a lot more). So you need to write out a detailed statement of affairs to work out what is a realistic figure to pay them back a month. You need to account for priority debs and basic living costs first, but not luxuries etc. Then once your new account is set up you write to them offering a monthly repayment figure for the loan and one for the overdraft, at the same time ask if they will freeze interest & charges on your account (there are templates for this).

They may ask to see your statement of affairs to see you are offering all you can afford. You don't legally have to give them this, although people often do, but if they think you can afford more (and remember as they have been your own bank they will be able to see you past account and where money has been going) they could take you to court, where you would have to prove to a judge that this is all you can afford.

As others have already recommended I think it would be a help to you if you got some advice from the debt free wannabe section in creating your statement of affairs before you make an offer of repayment to your bank.