Natwest Credit Cards Have Taken All My Money

LondonTom1982

Hi,

I'm after some advice, I was in shock today when I checked my account as the balance was zero! It turns out I have a defaulted credit card from 2009 but have never been informed about this. There is nothing on my credit file to say I have this credit card and have never been called by Nattiest about it.

The available balance was £2,300 in my account and £3,000 has been taken, obviously leaving me with no money and putting me overdrawn. I also have direct debits set up for tomorrow and the following day, so these will now potentially go unpaid and effect my credit score/file.

Can anyone advise, how my bank (also Natwet) could and have approved this payment to leave my account knowing it would leave me with no money, direct debits will go unpaid (including my rent) and putting me overdrawn.

Thanks

marleyboy

They are less interested in how much you will have remaining in your account once they take their debt out. They are more likely to take the opportunity of getting what they can to clear the moneys owed, rather than risk a potential of paying in dribs and drabs.

sinizterguy

Any bank can take any money from any of your accounts to use as payment against any debt you owe them without informing you.

These are a standard part of the terms and conditions of holding accounts / credit with them.

I think it is somewhat brutal, but that's how it is.


http://www.moneysavingexpert.com/banking/setting-off

fermi

You need to complain to Natwest ASAP.

See: http://fshandbook.info/FS/print/handbook/BCOBS/5/1

They should have not taken money needed for essential bills and living etc.

subsistence balance (in BCOBS) any sum of money payable by a firm to a consumer or standing to the credit of the consumer in an account with the firm where that sum is needed by the consumer to meet essential living expenses or priority debts (whether owed to the firm or a third party).

Set-off

BCOBS 5.1.3A
06/03/2011
FCA

To ensure compliance with its obligations under BCOBS 5.1.1 R and Principle 6, on any occasion where it proposes to exercise a right of set-off, a firm (other than a credit union) should, with respect to its dealings with consumers

(1) review the information available and accessible to the firm relating to the consumer's account, on an individual basis, and estimate the amount of any subsistence balance;

(2) refrain from seeking to set off or combine: (a) any debt due from, or a debit balance on an account held by, a consumer against or with that subsistence balance;

(b) any debt due from, or a debit balance on an account held by, a consumer in a personal capacity against or with any sum of money payable by the firm to the consumer or standing to the credit of the consumer in an account held with the firm, where the firm knows or reasonably ought to know that:

(i) a third party is beneficially entitled to that money or that the consumer is a fiduciary in respect of that money; or

(ii) the consumer has received that money from a government department, local authority or NHS direct payment body for a specific purpose or is under a legal obligation to a third party to retain and deal with that money in a particular way.


BCOBS 5.1.3B
06/03/2011
FCA

(1) If it becomes apparent to a firm after it has exercised a right of set-off that it has set off or combined a debt due from, or a debit balance on an account held by, a consumer against or with:

(a) the consumer's subsistence balance; or

(b) money payable by the firm to the consumer, or standing to the credit of the consumer in an account held with the firm, that falls within BCOBS 5.1.3AG (2)(b)(i) or (ii);

the firm should refund to the consumer the sum debited from the account of the consumer in exercise of the right of set-off unless it is fair not to do so.

(2) If, in the circumstances referred to in (1), the firm does not provide a refund of the sum debited from the account in exercise of the right of set-off, the firm should be able to justify that it is fair not to do so and should consider taking other remedial action having regard to its obligations under BCOBS 5.1.1 R and Principle 6.

fermi

Also see: How to ask for a refund

LondonTom1982

But my point was more so towards the banking side of Nattiest, how can they allow a payment to leave my account when I haven't got the money available, will put me overdrawn and means other bills including my rent will go unpaid.

LondonTom1982

Thanks Fermi

LondonTom1982

Who would or should I make my complaint to - Natwest bank or Natwest Credit Cards?

fermi

LondonTom1982 wrote: »

But my point was more so towards the banking side of Nattiest, how can they allow a payment to leave my account when I haven't got the money available, will put me overdrawn and means other bills including my rent will go unpaid.

They shouldn't, basically.

If they have they are in breach of the FCA rules above and you can ask for it to be reversed.

Take them to the FOS if they refuse.

fermi

Also be useful to read in formulating a complaint.

http://www.financial-ombudsman.org.uk/publications/ombudsman-news/84/84-banking-complaints-involving-setoff.htm

LondonTom1982

Fermi - thanks again for all your help on this - I managed to get all my money back and the bank admitted it was an unauthorised transaction.

As it left me with zero money for nearly 48 hours, should I be in line for some compensation?