DMP & Mutual Support Thread - Part 11

Sazzie23

sourcrates wrote: »

Hi Carboot,

I would be extremely careful here if i were you.
Banks have a legal route open to them to recover any money owed on one account with that company, from any other account held with the same company, its called "right of set off".

Now this is supposed to only be done within strict limits, for example, off the top of my head, i think they can only take money from an account if it has at least £5000 in it, they cant just wade in willy nilly.

To be 100% safe, its best to close any secondary accounts you may have with a creditor, that you still owe money too.

Hi,

I may have misunderstood Sourcrates but NW used the offset rule to take the £12 we had left in our savings account towards the £5k OD.
I didn't really care at the time I was grateful to start the DMP.

If you didn't have same lender debt, I'd be less concerned. Can understand why you'd want to keep hold of the account though, just maybe don't use it until your CC debt is gone.

Saz

[Deleted User]

Sazzie23 wrote: »

Hi,

I may have misunderstood Sourcrates but NW used the offset rule to take the £12 we had left in our savings account towards the £5k OD.
I didn't really care at the time I was grateful to start the DMP.

If you didn't have same lender debt, I'd be less concerned. Can understand why you'd want to keep hold of the account though, just maybe don't use it until your CC debt is gone.

Saz

Thanks:T.

I want to keep it for future use in case I find it difficult to get a 'real' account post DMP. My credit file will be clear of the defaults a while before then but there will be a couple with AP markers on unless I can get defaults and more importantly get them backdated . Other banks may not want me:(. I really need one with a branch more local to me.

The bank account I opened when I started my DMP was all organised online. They do have branches but, being very rural, the nearest bricks and mortar branch is about 17 miles away. The other one (that I have CC debts with) has a small branch in my local town. I visit that town several times a week for shopping etc.

I do car boot/table top sales to try to make a bit of extra cash . I keep the notes but often have loads of small change that I need to pay in somewhere (pretty sharpish as I need the money:o) and on occasion have paid it into my local bank and rushed home and transferred it electronically to my 'clean' account. Never had a problem but then it was never in there long enough to be seized and it is normally such a piddling amount anyway that I expect it wasn't worth the hassle to them.

I'm sorry as this is such a minor problem in the scheme of things but it is nagging at me:o

sourcrates

Sazzie23 wrote: »

Hi,

I may have misunderstood Sourcrates but NW used the offset rule to take the £12 we had left in our savings account towards the £5k OD.
I didn't really care at the time I was grateful to start the DMP.

If you didn't have same lender debt, I'd be less concerned. Can understand why you'd want to keep hold of the account though, just maybe don't use it until your CC debt is gone.

Saz

Its actually a very gray area in banking law, the source of this law is slightly unclear, though many believe it stems back to a case from the 19th century. Nowadays the rules are in the Lending Code. While this is a voluntary code of practice, most banks subscribe to it, and the rules are binding.

From doing a little research they can pretty much take whats owed from any other account held by you, in the same capacity, with the same company, the option to use setoff is down to each banks own operating procedures.

So best not to bank where you have debts everyone !!

NewcastlePaul

After finally completing my DMP last month.
It was nice yesterday that the last letter received from Stepchange was a congratulations card.
Very nice touch

racht

carbootcrazy wrote: »

Thanks:T.

I want to keep it for future use in case I find it difficult to get a 'real' account post DMP. My credit file will be clear of the defaults a while before then but there will be a couple with AP markers on unless I can get defaults and more importantly get them backdated . Other banks may not want me:(. I really need one with a branch more local to me.

The bank account I opened when I started my DMP was all organised online. They do have branches but, being very rural, the nearest bricks and mortar branch is about 17 miles away. The other one (that I have CC debts with) has a small branch in my local town. I visit that town several times a week for shopping etc.

I do car boot/table top sales to try to make a bit of extra cash . I keep the notes but often have loads of small change that I need to pay in somewhere (pretty sharpish as I need the money:o) and on occasion have paid it into my local bank and rushed home and transferred it electronically to my 'clean' account. Never had a problem but then it was never in there long enough to be seized and it is normally such a piddling amount anyway that I expect it wasn't worth the hassle to them.

I'm sorry as this is such a minor problem in the scheme of things but it is nagging at me:o

Have you got a post office more local to you? When I started my DMP I opened a basic account with Co-op- It actually works out better for me as I can pay any money or cheques into my local post office without having to go into the nearby town.

[Deleted User]

racht wrote: »

Have you got a post office more local to you? When I started my DMP I opened a basic account with Co-op- It actually works out better for me as I can pay any money or cheques into my local post office without having to go into the nearby town.

Thanks, racht:T

I do have a PO about 5 miles away:j but don't have a PO account. Do you mean it's possible to pay in cheques and cash to another (not a PO) account at a PO? Do you need some sort of paying-in book? My basic bank account doesn't provide one. All I have is a cash/debit card from the bank. If I've ever had a cheque to deposit I've printed off the online form and posted it off to the bank. Must check as not sure that would do for paying in via a PO. An elderly relative of mine has a PO account and says when she pays in cheques to it she needs a paying-in slip. The PO accept cash deposits just using her card though.

racht

carbootcrazy wrote: »

Thanks, racht:T

I do have a PO about 5 miles away:j but don't have a PO account. Do you mean it's possible to pay in cheques and cash to another (not a PO) account at a PO? Do you need some sort of paying-in book? My basic bank account doesn't provide one. All I have is a cash/debit card from the bank. If I've ever had a cheque to deposit I've printed off the online form and posted it off to the bank. Must check as not sure that would do for paying in via a PO. An elderly relative of mine has a PO account and says when she pays in cheques to it she needs a paying-in slip. The PO accept cash deposits just using her card though.

I don't have a PO account at all- just the basic Co-op account, I can pay cash straight into my account with the debit card - and its credited straight to account. I had to order a paying in book and envelopes to pay in any cheques- these do take a bit longer to be credited to account- but it saves me a bus trip into town, I sell a lot on facebook so easy to pay the cash straight in when needed.

[Deleted User]

racht wrote: »

I don't have a PO account at all- just the basic Co-op account, I can pay cash straight into my account with the debit card - and its credited straight to account. I had to order a paying in book and envelopes to pay in any cheques- these do take a bit longer to be credited to account- but it saves me a bus trip into town, I sell a lot on facebook so easy to pay the cash straight in when needed.

Thanks very much. That's really useful information:T. I'll see if my bank will supply me with a paying-in book:).

National_Debtline

Hi sourcrates

sourcrates wrote: »

Hi Carboot,

I would be extremely careful here if i were you.
Banks have a legal route open to them to recover any money owed on one account with that company, from any other account held with the same company, its called "right of set off".

Now this is supposed to only be done within strict limits, for example, off the top of my head, i think they can only take money from an account if it has at least £5000 in it, they cant just wade in willy nilly.

To be 100% safe, its best to close any secondary accounts you may have with a creditor, that you still owe money too.

I just wanted to clarify that there is no set "protected" level of funds in an account for the purposes of a bank exercising its right of set off. There are, however, other requirements on banks when considering doing this, which can be found within the Banking Code of Business Sourcebook:


https://www.handbook.fca.org.uk/handbook/BCOBS/5/1.html


HMRC have recently acquired powers to deduct money from a debtor's bank account for money owed to them - however the first £5,000 in any such account is protected from this action. Perhaps that is what you had in mind. The relevant legislation can be found at http://www.legislation.gov.uk/ukpga/2015/33/schedule/8 for anyone who is interested.


Of course, despite all the above, it always makes sense come what may to operate a bank account that is not connected in the slightest to one's debts.


Dennis
@natdebtline

sourcrates

National_Debtline wrote: »

HMRC have recently acquired powers to deduct money from a debtor's bank account for money owed to them - however the first £5,000 in any such account is protected from this action. Perhaps that is what you had in mind. The relevant legislation can be found at http://www.legislation.gov.uk/ukpga/2015/33/schedule/8 for anyone who is interested.



Dennis
@natdebtline

Think thats what i had in mind Dennis, not read up on it lately.