Are bank accounts classed as closed after default?

b1gdeano

I just want to know if a bank account acts the same as a closed account once it has gone into default and passed onto collection agency

I had a bank account that went over my overdraft about 2 years ago. This was due to charges by the bank which I appealed on but lost.

Long story short I refused to pay them, and they defaulted me. The account has been with collectors for about two years. I refuse to deal with them on the same ground i refused the initial bank charged. But that another issue.

my main concern is today, my payroll company have for some unknown reason paid me my wages into old information bank account, namely this one in default! I am angry to say the least but they are closed now so cant phone them till tomorrow. All my other payslips for the past two years have been fine, correct bank info, so clearly a balls up on their end.

Now I am concerned that if that account has accepted the money, I will never see it again, and I will be fuming if that is the case, as to just loose your weekly wage of £500 is not to be sniffed at.

I know that if money is sent to a closed account, then it gets returned, but does that apply to this case?

Either way I am going to give my payroll a piece of my mind tomorrow when they open, as to my mind they will be paying me in my correct account either way!

Just need to get some info on what is likely to happen with this?

Thanks in advance

chanz4

not much you can do, its owed they will keep it

b1gdeano

So you are saying that even though an account has gone into default and passed onto debt agency, that the account number etc will still accept electronic transfers into it? Surley that would mean that the account was still open? Which is why I was asking if a defaulted account is the same as a closed account.

As far as the payment is concerned, I will be getting my accountancy to reimburse me the money into the correct account, as it was their error that got the money put into the two year old account anyhow!

pmduk

I'd be looking to your employer to rectify this one.

b1gdeano

I am self employed, I pay an accountancy a weekly fee to deal with my payroll. This is what has happened, they have paid my wage into the OLD account. every payslip for years has been ok, with my current bank account details. this one is wrong, they have used the old one.

Dont worry, I will be speaking with them and demanding they sort this out.

stclair

If the account has been sold totally to a DCA I would image the account to be closed.

However if the DCA are just collecting on behalf of the bank in question the account may still be able to accept payments.

b1gdeano

How would I tell if it has been sold, or just acting on behalf of?

Even if the account has been left open to accept a payment, the accountancy should be able to retract their payment?

stclair

b1gdeano wrote: »

How would I tell if it has been sold, or just acting on behalf of?

Even if the account has been left open to accept a payment, the accountancy should be able to retract their payment?

No the bank have the right to keep the money if you owe it them.

You would be better off speaking to your accountant to disuss your options.

b1gdeano

dpraved wrote: »

hope the bank keeps the money..

Helpful and insightful from yet another inbred

I hope one day you will have something useful to add to peoples threads.

Hanky_Panky

The account can't be 'closed' until it has first been cleared of any monies still outstanding. So it may well be 'closed' as far as taking any money out is concerned but you still owe the money regardless of your current position that you 'refuse to deal with it'.

The bank will be more than happy that you have made a payment towards it which will have started the clock for another 6 years before the account becomes statute barred. Whether they have 'sold' the account to the dca or the dca is just acting on their behalf makes absolutely no difference to you at all.

I would re-think your current stance and 'deal' with it now.

JuicyJesus

If the account is closed closed (as in, written off by the bank and sold to a DCA - which if it was two years ago it in all likelihood has been) it will go into a suspense account to be pinged back from whence it came. They will probably do very little investigation into the source of the funds, rather just send it back and have done with it.

If it's not then good luck seeking repayment from the bank, as they're legitimately owed the money and will be loathe to give it back to you if you did a runner.