Do the Banks pay up by cheque or not?

dixie06

I asked for my settlement to be a cheque as the account I was claiming off is was closed, although they insisted that part of money I owed to debt collection service for o/draft was paid off. They re-sent the settlement letter to include that cheque payment would be sent, still not had it tho'!! funny when you owe them money they take it at the fisrt opportunity when they owe you money they eke it out for as long as possible. I think I read elsewhere you need to state that cheque payment is required on the particulars of claim.

Blushbaby

emmaroids wrote:

ok im just about to ask for my 6 years worth of statements from the hsbc, this is my old account and is now one of my creditors, i owe them 2.5 k for an overdraft,
my question is ,,,if i was to get some money back from the hsbc will the put it into the hsbc account or will they send me a cheque for my new account??
thanks

They'll prob pay your creditors the outstanding balance and anything leftover you'll be sent in the form of a cheque. I'm in the same situation with my Natwest account and that's what someone on here advised me.

imogen66

hi everyone, im a newbie so can someone please help???

Im was with Natwest, I have 2 account and a personal loan. I lost my job and struggled to keep up the loan repayments and they have now merged all accounts and handed over to a debt recovery company.

Im now paying the Natwest debt off with the debt recovery company however after following the step by step guide and sending the letters to natwest i have a letter from them advising that they will pay the full amount of the accrued chargeds (£1719.00) and put into current account.

I called natwest this morning to get a bit of info and they told me that the money owed will come off the total outstanding debt not to me personally. I really dont know what to do now, I realise that i do owe the money £8,000 approx, and that it will reduce payments however im happy with the payment plan set up with the Debt recov and could really do with the £1700 that the bank have offered in charges.

Any advice would be gratefully received.

stealther

Hi all

I've been pursuing Halifax for repayment of charges on my Halifax Credit Card. I am currently on a Debt Management Plan as my debt got out of hand a few years ago. I found that Halifax had charged me £250 in charges so I have gone after them for this plus interest. They have offered me the full amount back (£301.04) but are now refusing to send me the money in the form of a cheque, instead saying that it must be credited to my account as the account is still in arrears. I have asked for it to be returned as a cheque as I want to use it to pay for the court fees to take other institutions to court. Where do I stand legally? If they have deprived me of the money illegally, should I not be able to ask for it back in the form that I require?

Please let me know what you think!

Stealther

jillie1974

i was advised that the only time you will definitely receive a cheque is if you go through the courts.
my 4k was used to clear my loan as i was with credit management dept.they wouldnt budge on this no matter how much i argued with them on the phone! i was left with approx £300 for myself.

captain9

I have just received an offer from my bank offering a partial settlement, which I am considering. Can anyone tell me if I have to accept it being credited to my account, which they will use to clear my overdraft and so deny my other creditors a share, or can I insist on a cheque as payment?

Edinburghlass_2

You can try but I don't think you can insist.

Twinkly

Interesting question. I've had a little think and here is my two penn'orth.
My basic premise is:

If actual monies had not been taken unlawfully from the account it would have been the customers choice as to how to spend the money from their pockets/purses/wallets and nobody elses. Regardless of whether the monies were in the account initially it is my opinion that the customer should be given absolute authority on how to allocate them after a refund of unlawfully extracted charges. I'd not hand back my cash to a thief after it had stolen it but given it me back under duress regardless of how long they had held my money without stealing it previously. If unlawful charges alone caused the overdraft then it shouldnt just be about restoring the account to its previous state in credit.


In the case of a credit card refund being taken without customer consultation to pay off an account with the same institution that is tricky. Assuming arrangement is in place to pay the overdraft it may be worth negotiating with them to pay by cheque with the undertaking to pay some portion of the refund at least against the debt. The money belongs to the customer but the bank may have the legal right to allocate the full refund without customer having a choice. Please note that something being stated in the terms and conditions doesnt necessarily make it legal as we are all proving here.

Claralina

I have been reclaiming my bank charges from Barclays, and they finally made an offer to me last week, which I may accept, however they said the money will be used to pay off my existing overdraft debt I have with themselves. I rung them and argued that it was not fair of them to do this, as it is my money to do what I like with, but they said they are legally entitled to do this and it would be the only way I would get the money back!!! Is this right? Please can someone help me as I wanted the money for other things and don't think they should be able to do this!!! Hope this makes sense!

Zoetoes

Will you still have the overdraft facility? If they clear your overdraft with the reclaimed money then surely you can just go overdrawn again to the same amount?