Debt

Yashwey

Hello,

I've got a query about some debt I've built up in the UK and thought I would put it out there.

I'm from the UK and I'm a customer with one of the major UK banks. About 6 years ago I moved to Australia. I have an ISA with this bank (I haven't checked the balance in about 4 years, but it was last at £14k) and I also have a credit card with them - which about 3 years ago had £300 on it. Stupidly I fell out of the habit of paying the credit card off and haven't don't so for about 3 years now.

I've also forgotten all of my UK bank details and website logins, so the other day thought I should get on top of this and realise I have no way of accessing my account.

Does anyone here know if it's likely the bank would have taken money from my ISA to pay whatever debt I've built up on my card? Can banks do that? Or is my ISA untouchable?

My UK bank doesn't have my address in Australia so they've never been able to chase me. I've heard people say debts gets written off after 6 years - should I just wait now for another 3 years?!

LJB290

I don't know about banks taking money from an ISA to pay a credit card with the same bank but I would be incredibly surprised if they did.
ISA's, credit cards and bank accounts are all different sections under a bank "banner" and although you would think that they communicate - they don't.

Get in touch with them about your ISA asap though!

National_Debtline

Without getting in touch with the bank and checking the history/ balance there is no way to know for certain at this point but it is possible that the bank has exercised their Right of Set Off against your ISA, I am afraid an ISA is not an exempt bank account.....if you owe debt to the bank and that is not being paid, the bank can go into any other account that you have with them to take the money that is owed. With an ISA this could have caused you additional problems with the interest.


You need to try and get in touch with the bank ASAP to find out how you can release this money and move it to something more local/ effective.


Laura
@natdebtline

Yashwey

Thanks.

Also, do you know if my bank could close down my ISA? As I've not been in touch for a few years, could they say assume I've passed away or something and shut it down?

sourcrates

Yashwey wrote: »

Thanks.

Also, do you know if my bank could close down my ISA? As I've not been in touch for a few years, could they say assume I've passed away or something and shut it down?

When there has been no financial activity for a long period of time, other than posting of interest, an account can be classified as dormant. Statute of limitations usually does not apply to dormant accounts, and funds can be claimed by the owner or beneficiary at any time.

poppasmurf_bewdley

Banks can set-off a debt with them if you have an account in credit that will cover the amount. This is usually covered by the terms and conditions you agreed to when you opened the accounts.

Once the statements for both accounts started to be returned to the bank, the ISA will probably have been put into the dormant category and the credit card debt defaulted and sold on to a Debt Collection Agency. Unless, of course, they took the debt from your credit balance.

Hopefully they did this, leaving you with just the balance (and a clean credit file).