Help!

kpey

I am £900 in an unauthorised overdraft. The bank have now written to me to tell me they have cancelled all my banking services, DDs, cash card etc. They asked me to complete a financial statement and I assume they want to come to some sort of arrangement.

Fine I thought, I get paid 28th of the month I can transfer my payroll to my other account, set all my DDs up there (they all come out 1st - 5th of the month) and as First Direct (who have cancelled my DDs) owe me £1,000 in bank charges, which I am going to write to them about - they can have the unauthorised overdraft money out of that once they sort it, close my account, job done.

I have now been told by work that it's too late to change my bank details for this payroll run, the pay will go in to that account regardless (even though I told them the account was closed). They said if it bounces they will give me a cheque.

Obviously it won't bounce, out of the £1500 I get on the 28th First Direct will take their money and all my DDs that become due on 1st - 5th July won't get paid. I will no access to any money, and I won't have enough to even pay my bills (approx £1,000) even late when I eventually get the balance from First Direct.

And I am going on holiday 4th July so I won't even have the £200 spending money I though I would for that.

I am owed approx £1,500 in total bank charges, the letters for which I am doing this weekend.

What can I do? Please help. I understand it's all my own stupid fault but I need a resolution.

Thanks for any advice

Northernbird_2

Not sure how much help I can provide, but:

- Why can't your company change your bank account details? Most companies run payroll up to 2 weeks prior to the BACS payments being made, so you should have time. I would ask again.
- If the account is closed as your bank says, then it shouldn't be able to accept the money. Your wage is in your name, and the bank would only be able to take it if it goes into your account which it can't if the account is closed.
- You can ensure all DD's are cancelled. Phone the bank and make sure they have cancelled all DDs - you have the right to do this under the DD guarantee.

Other than that, it really is a case of wait, see and hope.

With regards the bank charges, I wouldn't rely on getting these back in the very near future. It can take a while (for me it was October when I received a 2nd 'go away' response from my bank, to mid-February when I could afford the £120 fee for a court claim, and then it took until the end of May for the court date to be set and my bank to eventually settle two days before the court date). Treat the charges as a bonus if you get them...

Is there aynthing you can sell on ebay to raise the £200 for your holiday?

Sorry I can't be of more help.

Good luck.

kpey

I work for a massive company, they send their payroll off 5th of the month, and they cannot recall 8,500 peoples info just for me (apparently). I am not sure that the account is actually closed, that's what I told work to see what they could do. Basically I think the account still exists for the purposes of the debt - and they will try to retrieve it any way they can.

First Direct have cancelled all the DDs so no more can come out of the account - my issue is that none of my bills will get paid whatsoever.

In all honesty I am thinking there is nothing I can do and I am going to get a black mark against my name for all the non-payments?

Shineyhappy

I dont know if there is anything you can do other than try and set up another account with an overdraft facility and transfer any bills over to that account and also try to raise as much cash as possible but getting refunds on anything you can or selling your unwanted goods on Ebay/Amazon/bootfairs etc

Conor_3

kpey wrote: »

In all honesty I am thinking there is nothing I can do and I am going to get a black mark against my name for all the non-payments?

It's looking like it. Just have to suck it up and learn the lesson that's been given to you. There's nothing to stop you phoning the companies concerned and telling them the bank has made a !!!! up and you'll give them new account details in a couple of weeks. Worth a go.

smudgemanc26

This is just an idea and i know its not very sensible and is very naughty but it might help.

Why dont you as soon as your wages get credited to your bank ie at 12 midnight or ASAP (first thing in the morning) on on the day of payday go to the bank and withdraw the money. Hopefully by then the bank wont have put in place its procedure for swallowing up your money paying back your overdraft as this might have to be done manually and no one will be working at this time.

Its a bit sneaky but just an idea. Then you can repay the money back to them when you have it after your bills have been paid.

kpey

Luckily someone has very kindly lent me the money (what are parents for). So I have escaped by the skin of my teeth, and will not be repeating this experience. Thanks for your help though