Can bank take my entire wages to reduce the debt on the account?

Varin

Hi there. The situation is as follows:

I have 500 pounds overdraft limit with Lloyds on my current account. Recently they allowed a cheque to go through, even though my balance was close to -£500. It was about -£750 pounds since then, where £250 debt is an unplanned overdraft.

Now, I asked my employer to pay my wages into another bank account as I need it in whole, and I am in bit difficult situation. They f***d up, and wages went into lloyds account only reducing the debt. Is there any way I can get some of this money and be able to use it? Is there anything I can say to the branch manager to make him give me this money, deducting lets say 15% for overdraft repayment? I need the money to pay the bills and buy food...

le_loup

Varin wrote: »

Recently they allowed a cheque to go through, even though my balance was close to -£500. It was about -£750 pounds since then, where £250 debt is an unplanned overdraft.

THEY allowed? Did you not write the cheque then?
Your redress seems to be with your employer who failed to follow your instruction. Maybe they will help, Or maybe you wouldn't want then to know.
Have you approached the bank to ask for an increase in your overdraft?

Varin

"They allowed" - I mean, there was no funds in the account, so cheque shouldn't really go through, should it?...
I'm just trying to find out if it is not against the law to seize whole wages as a reduction of the debt, and if I can still get at least part of this money as I have no money to support myself till next Friday. That's all I really want to know.

CLAPTON

you really haven't provided enough details of the situation but

overdrafts can be withdrawn at any time

presumably they have cancelled your overdraft so you can't go overdrawn or what?

this this the first time that this has happened?

you can ask them to reinstate a smaller overdraft especially if this is the first time but no you can't insist.

maginot

Yes of course they are allowed. They don't have to give you any overdraft!

Overdrafts should only really be used for short periods. Can you get a super balance transfer on a 0% credit card. This is probably the best and cheapest solution.

Or as mentioned by le loup, if you asked your employers to change payment instructions and they were unable to do this, perhaps you can can ask them for an advance on your salary.

pelirocco

I think the OP was ovber his overdraft , his/ her wages might only have covered the excess overdraft

izools

Varin wrote: »

"They allowed" - I mean, there was no funds in the account, so cheque shouldn't really go through, should it?...
I'm just trying to find out if it is not against the law to seize whole wages as a reduction of the debt, and if I can still get at least part of this money as I have no money to support myself till next Friday. That's all I really want to know.

You instructed the bank to take the money by writing the cheque. You also comitted fraud by writing a cheque that would be drawn on funds you knew wouldn't be there.

Your attitude stinks, seriously. The bank has made no error in this instance.

I'm not usually this blunt but you need to grow up and take responsibility for the mess you caused by your irresponsible and immature use of your bank account.

And yes, the bank are within their righs and within the terms you agreed to in taking your money to clear the debt.

You also agreed that the overdraft is repayable on demand. This means they'd be fully entitled to remove your overdraft altogether at no notice and charge you for being over it.

It's not their fault that you neither read the terms nor asked for clarification on terms you didn't fully understand.

david39

You wrote a cheque to someone that you fully expected would bounce to give yourself extra time before you had to face up to the problem of your lack of funds.

This could, quite possibly, have landed them with the same problem through no fault of their own.

Now you are complaining that it is you who are without funds because the bank actually obeyed the instructions you gave them.

The words chicken, home and roost spring to mind.

Varin

Very judgemental you are, my friends...
Fraud accusation - no, I lost my job, after I wrote the cheque, but it's funny to read how - not knowing me - you call me a fraudster.
Got a new job, gave them old bank details, then asked them to change it, and gave them details of another bank account, so I can actually use my money to buy food - I guess many will agree with me that buying food and paying for water/gas/electrics/rent is more important than just covering an unplanned overdraft.

Please save the comments of my maturity and responsibility to yourself, you are not helping tbh, and just poisoning the atmosphere as you don't know me, ok?

All I want to know is, if I can go to the bank and say: "Look, I have no money to live, can you give me my wages back, deduct small amount to cover some of the unplanned overdraft, and give me the rest, so I can go to Tesco and buy some mince and pasta."
I'm asking you guys if you know of any regulations that I can bring up when talking to them, to achieve my goal - eat today.

166million

Hi Varin, unfortunately I think you would be on very shaky ground with the bank on this one. I'm not an expert but I'm sure they are not obliged to give you anything back since what was paid in just covered your overdraft. I take it you cannot use the original £500 overdraft facility any more? You could ask your employer for a cash advance on next wages, or sell some of your personal belongings to enable you to see through to next payday. Then, make sure your wages gets paid into the right account next time, and be frugal until you are back on track.
x

opinions4u

You could ask them for mercy.

You could challenge them as to whether or not they believe they are complying with BCOBS 4.1.4A .

Personally I don't think it applies to this situation as it only involves one account and not right of set-off.