Money into closed overdrawn account

uselessmoneysaver

Need some advice and reassurance please!

I had an account with Barclays which went £1700 overdrawn (!!) and so I set up a DMP with Step Change to clear my debts. The bank account was subsequently closed. However, I had a student grant paid into the closed account today and now I am seriously worried about what is going to happen to that money.

I spoke to Student Finance who said that when money is paid into a closed account, it is returned to the sender and so I gave them my new bank account details. Barclays also confirmed with me that the account is closed. But I'm worried as the account was overdrawn before they closed it and so I don't know whether they will take that money anyway?

Has this happened to anyone before? And if money is returned to sender, how long does that take?

Thanks in advance!!

mgdavid

I cannot comment on your particular circumstances but usually an overdrawn account cannot be closed, this was mentioned in another thread a couple of days ago. Bank may sloppily call it closed when they mean it is marked as inactive except for deposits.

uselessmoneysaver

mgdavid wrote: »

I cannot comment on your particular circumstances but usually an overdrawn account cannot be closed, this was mentioned in another thread a couple of days ago. Bank may sloppily call it closed when they mean it is marked as inactive except for deposits.

Yes, that's what I thought but I called Barclays and they said the account has been closed and passed to a debt collector (who go through Step Change) so therefore they don't have an overdrawn account for me. I'm so confused and really anxious now :huh:

James_B.

There's definitely a chance that it's still open and that they are now using your grant to offset your debt to them. Best thing to do is to call again and ask about what they will have done with the deposit.

McKneff

Yes, I think I would definitely be ringing them/


At least you will know one way or another.