Can they take money without my permission?

Millie_Mo

I am experiencing problems paying my credit card. However, I have spoken to the credit card provider and have made arrangents to pay it back. I have logged onto my accounts this morning and have seen that they have taken money out of my account without my permission. The credit card and the bank are the same provider. I have had no letters or calls saying that they were going to do. Surely this isn't allowed?

Mrs_Arcanum

Millie_Mo wrote: »

I am experiencing problems paying my credit card. However, I have spoken to the credit card provider and have made arrangents to pay it back. I have logged onto my accounts this morning and have seen that they have taken money out of my account without my permission. The credit card and the bank are the same provider. I have had no letters or calls saying that they were going to do. Surely this isn't allowed?

If you have a DD for the CC payment the automated systems will take this regardless. This may stop next month but to be sure you will need to cancel the DD.

Should add DH had this exact same problem. The new lower payments kicked in the following month (not much help in the month he really needed it).

stclair

Im sorry to say banks have the right to offset.

So if you owe them money for example a credit card bill they can take the money from your current or saving accounts within the same group to pay the debt.

scottishblondie

The above is possible, especially if you only made the arrangement recently. Another possibility is that they could be using something called "right to offset", which means if you have cash and debt with the same provider they can take the cash if you default. I'm not sure if they have to inform you first. Best phone them and check why they have taken the money, and proceed from there.

izools

If you forsee your financial difficulties continuing you need to open an account to have your wages paid into and bills paid out of with an unrelated bank.

Your bank, if you hold a credit card with them, have a legal right to help themselves to your current account balance to bring any credit accounts you hold with them, back up to date.

Millie_Mo

Can they do this without writting to you to say that they are going to take the money??

CLAPTON

Millie_Mo wrote: »

Can they do this without writting to you to say that they are going to take the money??

yes, when you agreed to the T&Cs of the CC and the bank account you agreed that they could do this

stclair

Millie_Mo wrote: »

Can they do this without writting to you to say that they are going to take the money??

They dont have to give you warning I regret to say.

If the bank was to warn you the first thing you would do is move your money.

Millie_Mo

Even when you have contacted them with a payment arrangement which the adviser agreed?

izools

Millie_Mo wrote: »

Even when you have contacted them with a payment arrangement which the adviser agreed?

It's not a formal agreement unfortunately. Unless the advisor clearly stated "This agreement replaces our right to offset" or words to that effect with a clear cut re-assurance that no monies would be taken over the agreed amount.

Unfortunately them simply not mentioning that they have the right, which they may exercise, to nab the funds from your current account, doesn't count