warning re cahoot and direct debit

filigree_2

Warning: If you have a Direct Debit to pay money from another account into your Cahoot savings, phone Cahoot URGENTLY and demand to know how much money they will deduct, and when.

CAHOOT JUST TOOK £4000 FROM MY CURRENT ACCOUNT WITHOUT MY PERMISSION!!!!!! >:(

Further details if you're interested:

I haven't been able to draw any money from my current account all weekend because I'm allegedly £1800 overdrawn. This suggested that £4000 mysteriously disappeared at some point after late Friday night.

Panicked, came home and checked current account online. There is a £4000 Direct Debit due to go out tomorrow, so Barclays won't let me withdraw any more money.

Bah humbug to Barclays for not letting me access an account that still has a balance of £2000+, but Cahoot are really to blame.

Emailed Cahoot who basically said not their problem, sort it out with Barclays.

Tomorrow I have to frantically phone all concerned to either beg Cahoot for an urgent refund of at least £2000, or I have to withdraw money from other accounts and cram them into Barclays to cover the overdraft.

I've never been overdrawn by more than £100 in my entire life. My overdraft limit is only £250, so I'm looking at punitive interest and charges.

F*** the interest rate, that few extra quid has been utterly wiped out by overdraft charges and the time and hassle of sorting out this mess. If they don't compensate me for the losses, I'm shutting down the account.

Merchant *ankers, indeed.

filigree_2

Update:

Sent them a stroppy email saying I was disgusted that they'd washed their hands of responsibility for my £4K overdraft, will shut account etc etc.

They now say they won't take the DD after all!  ::)

I will still phone Barclays to cancel the DD authority, and any transfers to Cahoot will be made manually so I have control.

My advice still stands though - call Cahoot and check that they won't arbitrarily take substantial sums by DD.

Milarky

If cahoot took the money without authority then you would be covered by the Direct Debit 'Guarantee'.

You should be refunded the money to your current account and all fees waivered by Barclays....

However, can you explain how cahoot came to collect this amount? Did you request a lesser amount or no amount at all? They only debit on request, and you have longer than ususal (4 working days) to arrange to the cover any withdrawals by paying into your current account at least the day before.

If you at least increase your overdraft limit to the maximum Barclays will allow you, this creates a 'buffer' against which any debits can be taken. This is what I would suggest - even if you do not 'use' your overdarft, because you recredit negative account balances on the morning of withdrawal, say.

And the alternative you mention (of initiating transfers to cahoot yourself) seems quite sensible even if it loses you two days interest..

filigree_2

I did set up a Direct Debit mandate but only asked them to take £1000. Barclays won't even give me a credit card, I don't think they'll offer me an overdraft limit equal to my entire annual income!

I managed to stop the payment, and cancel the mandate completely and in future any transfers will be made manually. Losing a few pence in interest is worth it for peace of mind.

dunstonh

Cahoot were right to tell you to get it corrected via Barclays.

What was the reason given for cahoot requesting that amount?

filigree_2

Cahoot were right to tell you to get it corrected via Barclays.  

What was the reason given for cahoot requesting that amount?

Yes, theoretically the most appropriate solution was for me to approach Barclays which I did. Got a lot more sympathy from them! Considering the circumstances, I'd have hoped for some level of apology or explanation from Cahoot. Hah.