Frozen account

bigkells

Hi could comeone please help me with this, I was made aware today that the funds in my bank account has been frozen due to a credit card that I had with nationwide that I defaulted on last year. Can they just go into my savings account and do this? I have been speaking to some sort of collection agency kpr I think who have said either I agree to pay the amount of £1150 (which I cannot afford to pay) or they will just automatically take it on 14 days anyway. is their anything I can do?

Thanks

jonesMUFCforever

If the savings is in a Nationwide account then yes they can - I'm surprised they have even asked you!
It is called the right of set off.

Better come up with an agreement to repay or they will take the lot.

bigkells

Do you think the bank will let me come to an agreement tomorrow?
The third party credit company reckons that they wont and that
I will have to pay the lot. I really cant afford to pay it all at this
present time. I also wonder if it is so straight forward for them why are they giving 14 days to agree.

Degenerate

You need to seriously re-assess your priorities if you're defaulting on a credit card whilst having enough cash sitting in a savings account to pay it off. That makes no sense whatsoever.

pmduk

We don't know that the OP has any funds in a savings account, let alone sufficient to pay off the debt. The OP needs to open another account in a different financial institution and arrange for all future credits to be sent to that new account.

bigkells

Degenerate wrote: »

You need to seriously re-assess your priorities if you're defaulting on a credit card whilst having enough cash sitting in a savings account to pay it off. That makes no sense whatsoever.

I need you today i really do

MumsTaxi

HI Big Kells. As a former banker, I find it hard to believe that the bank did not attempt to communicate with you, in some way, about this whole situation (i.e. before you got the letter saying they were going to take the money from your savings account). The secret to keeping any bank happy is communication. If you keep in touch with them and honour any payment schedule agreed, this situation would never arise.

If you have not had the opportunity to give your side of the story, then that is not fair to you. At the same time, however, you have the money to pay off the debt sitting in another account and to me, that is not fair to the bank either. If you are meeting them today, why don't you suggest that you transfer 50% of what is due from your other account and then agree a monthly payment schedule to clear the balance. If you default, for any reason, then give the bank the right to clear the debt from your other account. I think this would be fair to both sides.

Joe_Bloggs

Here is a DirectGov link relating what can be done when a County Court Judgement is in force.
J_B.

bigjl

If you have more than the outstanding debt in your savings account i must admit i would have paud them.

Defaulting is a last resort, and i would prioritise debt repayments above saving, one good reason to add weight to this course of action is that you will be getting next to no interest on your savings so by paying of f the debt you will be saving interest payments on your debt.

This is certainly how i see the situation.

And as far as what the bank has done, i have heard of people that have a savings account and current account with the same bank and the bank transferred funds to cover, from memory, an overdraft facility.

KingElvis

It's the right to offset your outstanding debts against your other accounts, all perfectly legal.

I have to say I'm facinated too if you have enough to pay it off in the savings, why haven't you made some attempt to pay at least something?

If you just clam up and default they will do what they can to get their money back.

Good luck.

Degenerate

pmduk wrote: »

We don't know that the OP has any funds in a savings account, let alone sufficient to pay off the debt.

You must be reading a different OP than me. From where I'm reading, the OP appeared to imply that they have enough cash in a savings account, and Nationwide are threatening to take it.