Do the Banks pay up by cheque or not?

jt2k6

Morning all,

just want to start by saying THANKS! you have all been amazing & I would never have got to where I am without your help!

Recieved a letter from Barclays re my claim for £790. they have offered to pay me £540, which normally I would accept however they state in their letter that the money would be placed in my bank account... I don't want this, can I tell them that I want a cheque? is it worth pussing them for £600 while I'm at it?

£540 will soon turn into nothing with overdraft fee's etc, and I could do with the money!!!

anyone else had the same response from Them?

also in the 5 weeks since i sent my first letter I have had a few more charges, only about £40 should I start a claim for these? could get £40 for the cost of 2 recorded delivery letters? or is it not worth it?

Thanks again

TTFN

AFCChris

Hi there

Can anyone tell me if they are getting refunds for charges on credit cards paid credited to their CC account or has anyone got the money back into their current accounts or sent a cheque.

Cheers

Chris

Beate

Our account was closed anyway so they sent a cheque.

stubie

Hi All,

First Direct have made me an offer of £1900 against my claim of £2200 which is great news, I will be accepting it :T but can I request that they send me a cheque for the £1900.

FD want to pay it into my account which will clear the OD and then I suspect they will withdraw my OD facility. With a cheque I can pay it into a different bank.

Any ideas?

Twinkly

stubie wrote: »

Hi All,

First Direct have made me an offer of £1900 against my claim of £2200 which is great news, I will be accepting it :T but can I request that they send me a cheque for the £1900.

FD want to pay it into my account which will clear the OD and then I suspect they will withdraw my OD facility. With a cheque I can pay it into a different bank.

Any ideas?

The Right Of Set Off applies to this refund. See here for more information with examples of how this works and how it can and cant be applied:
http://www.financial-ombudsman.org.uk/publications/ombudsman-news/40/40_setoff.htm
The situations shown deal with the bank taking money between two accounts but the same prinicple applies to their taking this refund of charges against your overdraft with them. Basically, if they hold your money they have certain rights to it.

In the situation of an overdraft, to stop the bank taking the entire refund is a bit complicated and depends on a few things. If the overdraft consists of any charges applied after the account has gone overdrawn then technically no money is due to you for these as you have not actually paid them. The bank is logically entitled not to refund any monetary payment to you for something that you have not actually paid. They can refund X amount straight back for this and reduce the overdraft accordingly.

As for any remaining amount on the overdraft that you should be paying back then they can only take monies against this if they are 'due and payable'. In the case where the overdraft is over its limit and you have an agreed arrangement to pay at a monthly rate and do so then the Right Of Set Off does not apply.

If the overdraft is within its limits then again, the Right Of Set Off does not apply.

The crucial point is that the money must be 'due and payable'. They could only take the refund of your charges if they had officially recalled the overdraft prior to refunding your money. If they havent officially recalled the overdraft prior to you reclaiming and being settled your charges then again, the Right Of Set Off does not apply and you are entitled to payment of outstanding monies direct by cheque. You are entitled to continue to pay an overlimit overdraft at the agreed rate or enjoy the service of an overdraft within its limit until any official recall.

If they do recall it officially at this stage it is clearly in retaliation for reclaiming charges and a blatant abuse of their Right Of Set Off to appropriate your monies. Advise that you will be making complaint to the Financial Ombudsman regarding this and do so.

All of the above depends of course on your own personal situation but I hope it helps you to understand what your rights may be and how to approach the bank accordingly. Good luck

melizzard

I'm a newbie, have sent second letter to Barclays and today been offered £900 :T (total charges £1400).

Trouble is, Barclays have closed my accounts this week as I've had trouble with my Barclayloan repayments thanks to my husband leaving... they did agree I could pay £10 a month until financial statements sorted, then suprise suprise, when they got my bank charges letter they changed their minds and just closed the accounts and obvioulsy withdrew overdrafts (totalling £1800).

I already have a new bank ac (but no overdraft), so can Barclays just use the refund to pay off the od/loan, or do they have to apply to the court to do that? Ideally I'd like them to pay me a cheque which I can pay into my new bank account.

Any advice please!
Melizzard

batgirl_2

Hi Im new to this, I have won the battle with my bank charges and they have agreed to pay me £1439.00, but i havent used the bank account for nearly 2 years and it is overdrawn by £900 which i am paying it off £30.00 per month. Natwest have said they will clear of overdrawn amount then send me the rest via cheque, i said i would prefer the money to be paid into my barclays account and i will continue with my current arrangement of £30.00 per mth, they have point blank said no they cant send it to any other account or a chq for the full amount, i will be sent whatever is left after they have taken what they are owed, are they allowed to do this, i feel as though my battle was for nothing now. PLease help .....

MSE Martin

mnop_2

Sounds right I'm afraid you owe them the overdraft (£900) which they have accepted repayment at a rate as its all thats resonable for them to demand but if they know you have £1439 because they having to repay it you have to see their point that they want their money back too. I might be wrong in which case someone will no doubt put you right

On the bright side you have that debt payed off so you have £539 back in your pocket now and save £30 per month moving forward

batgirl_2

Thanks i wasnt sure its just they were really rude and abnoxious on the [hone today, do you know if they can tranfer the remainer to another account or does it have to be by cheque....

Julieoolie

batgirl wrote: »

Hi Im new to this, I have won the battle with my bank charges and they have agreed to pay me £1439.00, but i havent used the bank account for nearly 2 years and it is overdrawn by £900 which i am paying it off £30.00 per month. Natwest have said they will clear of overdrawn amount then send me the rest via cheque, i said i would prefer the money to be paid into my barclays account and i will continue with my current arrangement of £30.00 per mth, they have point blank said no they cant send it to any other account or a chq for the full amount, i will be sent whatever is left after they have taken what they are owed, are they allowed to do this, i feel as though my battle was for nothing now. PLease help .....

MSE Martin

As you are paying the overdraft off by arrangement I would imagine they are able to do this. I don't see how your battle has been for "for nothing" - you are £539 better off and the debt which you owed them is now cleared.