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Bank have used Compensation to pay off Overdraft
I have received some money back from Natwest for my Advantage Gold packaged account that I took out 15 years ago when I moved out of home. It was for the monthly account fee.
The was transferred straight into my current account. £500 has been sucked up in Overdraft fees. (I'm in a total mess with this account) I was going to close the account but couldn't as I owe money on the OD.
Can they use this compensation money in this manner?
If I had claimed back Overdraft fees or bounced direct debits that had increased my OD and they wanted to use that to clear the OD then I could understand that.
I'm on maternity leave and desperately need this money.
Many Thanks for any advice
Comments
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The bank can call in the overdraft any time they want. Paying off the OD and reducing your fees / stopping future charges will save you money and allows you to close the account.
If you are in hardship, speak to the bank about getting help on thatSam Vimes' Boots Theory of Socioeconomic Unfairness:
People are rich because they spend less money. A poor man buys $10 boots that last a season or two before he's walking in wet shoes and has to buy another pair. A rich man buys $50 boots that are made better and give him 10 years of dry feet. The poor man has spent $100 over those 10 years and still has wet feet.
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As per the above, other than in serious financial hardship cases, which need to be argued on an individual basis, banks are generally entitled to set off redress against any arrears owing on the debt. If you think your case qualifies then I would contact the lender and inform them of this. It may not change their decision and if you are still unhappy then you can consider referring the matter to FOS.0
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Thanks all. I'm just about to file for bankruptcy and needed that money to pay for it. I'll go back to Step Change.0
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Idle speculation but if you're already in a debt plan, struggling for money AND have a kid coming along which you clearly will struggle to pay for, there is a fair chance the bank is simply covering their bases as they probably expect they won't get anything more from you
Sam Vimes' Boots Theory of Socioeconomic Unfairness:
People are rich because they spend less money. A poor man buys $10 boots that last a season or two before he's walking in wet shoes and has to buy another pair. A rich man buys $50 boots that are made better and give him 10 years of dry feet. The poor man has spent $100 over those 10 years and still has wet feet.
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