Is this "Legal Right" Legal??? Help Please

trubster

Hi everyone, the other day I noticed nearly £300 was drained from my Barclays Bank Account, and it was paid to "Barclaycard"

I had a barclaycard a year ago and when I got bank charges for making a payment 1 day late, I stopped using it and refused to pay until the charge was refunded and also I was made redundant and my ppi did not want to know.

I called them up and they say that "we have excersised our legal right to offset part of the balance owed by recovering it form your barclays account" and they would not budge, I explained my offer was not acknowledged and all my letters ignored. He was not interested and said nothing could be done.

The main problem is that the money they took off me was my tax credits and I have rent due within a week.

Is there any way I can get this money back, and would this fall under the "Social Security Administration Act" as the money was taken from a benefit.

Any help gratefully recieved.

Thanks

Kev

jonesMUFCforever

Barclays have what is called a right of setoff (As do all banks).
As to whether they can take off all of your benefits (if that is the case!) then this is a mute point.
Legally (despite what others on these boards will tell you) they can!
You decide to play judge and jury by refusing to pay up - now you can see what it can lead to.

I suggest that you phone the bank up and arrange a repayment plan, stick to it and they might give you some of the money back.

CLAPTON

make sure you open a new bank account (with someone you owe no money to) and have all your income paid into it so Barclays can't do this again.

trubster

So wouldnt this information be useful or applicable to this case?

The article of law is:

187.—(1) Subject to the provisions of this Act, every assignment of or charge on—

• (a) benefit as defined in section 122 of the Contributions and Benefits Act;

• (b) any income-related benefit; or

• (c) child benefit,

and every agreement to assign or charge such benefit shall be void

Link http://www.opsi.gov.uk/acts/acts1992...0005_en_16.htm

Dylanwing

Just in case - If card is in sole name and Bank Account joint, they legally cannot take the money.

bengal-stripe

trubster wrote: »

So wouldnt this information be useful or applicable to this case?

I believe the legal meaning of the word ‘Charge’ (charge against property = priority claim at some point in the future) is different from everyday speech (“charge it to my credit card”).

Only a court can decide whether a ‘bank charge’ is a charge in the legal definition of the word or just any old transaction.

jamalfatty

You would have needed to use the 'right of appropriation' which I think is what you are referring to above. However, you need to advise them of this 7 days before each and every deposit into your account - which is not possible here as money already in your account.

http://www.adviceguide.org.uk/c_banks_and_building_societies.pdf

jonesMUFCforever

jamalfatty wrote: »

You would have needed to use the 'right of appropriation' which I think is what you are referring to above. However, you need to advise them of this 7 days before each and every deposit into your account - which is not possible here as money already in your account.

http://www.adviceguide.org.uk/c_banks_and_building_societies.pdf

LTSB will let you do this once and once only!
The second time you ask the account will be closed - so overdrawn accounts would have to be paid back.