Money taken from bank a/c without my permission - I'm in total despair :(

Dominic1983

I need some advice from anyone please!

A few months ago I found myself unable to pay the minimum payments on my BarclayCard due to having so many debts and earning a low wage. So I stopped paying, received numerous letters from BarclayCard asking me to pay up etc. They then eventually passed the debt of £3,600 to a debt recovery company, Allied International Credit. They sent me several letters telling me to pay up and threatening me with court action. At no point did I make contact with them as the threatening letters really scared me; in hindsight I really should have offered a minimum payment plan or something.

Anyway, yesterday I received an inheritance of £7,500. This wasn't enough to pay off all of my debts, so last night I paid off my rent arrears and my overdraft first. I then sat down tonight to sort out how I was going to split the rest across all my other debts, only to check my bank balance and see that the remaining money had disappeared, a payment of £3,600 had gone out to Allied International. Obviously my bank (Barclays) have seen that a substantial amount of money has been paid into my account, tipped off Allied International and made the payment to them, all without my authorisation or letting me know first.

Isn't that illegal? I know I should have contacted Allied International to sort out a payment plan before, but how can a bank just tell another company I have money in my account and then authorise the payment to go ahead?

I'm thinking of calling Allied in the morning to challenge them over this, but what should I say? Any advice would be greatly appreciated!

Dominic

dmg24

Barclays/ Barclaycard retain the right to draw funds from related accounts if you are in arrears. It looks like this is what they have done. It is lawful.

aka_shortie

sorry to sound condescending, but what do you expect? You owed a large amount of money that you had made no effort by your own admission to repay or communicate with the debt holder. I dont blame them at all for taking exactly what they are owed the moment your account is in credit.

As for if it is legal, yes i would say it is. Sorry i cant be any more help.

Saints2011

You havent got a leg to stand on im afraid, you owed they took from your c/account with them nothing you can do.

Fruit_and_Nut_Case

Interesting article here about "set off".

Dominic1983

Okay, thanks for the advice people, guess I really haven't got a leg to stand on having read that article

aka_shortie

If your still left with further debts, dont ignore it any longer, sent up a payment plan or it will only get worse. Burying your head is not a solution!

Dominic1983

Yeah I'm going to, think I'm going to have to find a second job too.

izools

Good luck with everything.

Doin't feel pressured into working more than you can cope with though.

Get a bank account with someone you don't owe money to. The Co-Operative Cashminder account is a good starting ground if you don't owe the Co-Op anything. Their acceptance criteria on this account is very loose and you should be accepted with bad credit.

Then write down all your figures, work out your income and expenditure, work out how much you owe, and write to everyone with your income and expenditure, and a offer in line with what you can realistically afford.

If this is too much, the CCCS (Consumer Credit Counselling Service) can set up a DMP (Debt Management Plan) for you.

Just remember - you are under no legal obligation to pay more than you can prove you can realistically afford.

Anyone who suggests otherwise is lying. Anyone who suggests you are liable to be taken to court, if you are already paying what you have demonstrated to them you can afford, is in breach of the Administration of Justice act S40(1)

You'll be fine, just get the ball rolling on cleaning things up and you'll feel much better once you have done so

KingElvis

No chance of getting that back, I'll bet there's more to pay too with charges, letters etc to pay off.

I'd still contact them and ask for it back, claim poverty etc etc

thenudeone

Yes there is plenty of posts on these forums advising never to bank or save with a company that you are in arrears with on any form of credit, because they are entitled to offset one against the other without asking you. Sorry.