What Can I Claim

DINKY07

Hi All

I am just going through my bank statements highlighting charges, ive come across something listed called TRANSFER and next to it a large sum of money was taken from my account by the bank without my permission, this was due to missing a couple of loan payments i think, they left me with 10 pence in the account and i remember it well because it left me potless just b4 xmas.

Has anyone else had this problem

And can i reclaim this amount back since i didnt give them permission to take it

Twinkly

DINKY07 wrote: »

Hi All

I am just going through my bank statements highlighting charges, ive come across something listed called TRANSFER and next to it a large sum of money was taken from my account by the bank without my permission, this was due to missing a couple of loan payments i think, they left me with 10 pence in the account and i remember it well because it left me potless just b4 xmas.

Has anyone else had this problem

And can i reclaim this amount back since i didnt give them permission to take it

The banks have the right to exercise something called the Right Of Set Off. Please see here for more information:
http://www.financial-ombudsman.org.uk/publications/ombudsman-news/40/40_setoff.htm

Basically they have the right to set off any money in the account against a loan held with them and according to the article certain conditions would have to apply. The money taken would have to be 'due and payable' and they could only take the missed payments on the loan. They dont normally have to tell you they are going to do this or ask your permission so its well worth knowing about and preparing for. If the loan is still in effect I would open another account with a different bank altogether to prevent it happening again.

With regard to reclaiming the amount in question. If they took in excess of missed payments you can challenge it and complain to the Financial Ombudsman about the abuse of the Right Of Set Off. If all they took were the missed payments then they were entitled to, you have dont have any comeback and cant reclaim it I am afraid, sorry

Good luck with the rest of the claim