Are they allowed to do this?

louise1234_2

Its likely the terms and conditions of the current account will say they can take money you owe them from the account to cover outstanding balance on other accounts within Halifax. I'd move any money asap.

You never included any salary in your details. What are you getting at the moment? Is it full pay or reduced sick pay?

MM3_2

There is no salary. We are both self-employed and I don't have any salary or sickness benefits coming in.

jackywhizz

Hi MM3. I work for a bank(not HBOS but that doesn,t mean my company's any better). banks usually have a 'Right of Setoff' written into credit agreements but I've not heard of one involving a current account and credit card before. usually this is because the credit card co is run separately i.e. you don't have to have a current account with HBOS to have a credit card with them. I'd pop into the local branch and pick up their account and credit card terms and conditions just to make sure they're not just taking a liberty.
If nothing is mentioned don't mess about write to the Chairman at their registared office to complain. If you get no joy follow their complaints procedure then you can take it to the Banking Ombudsman. make sure you keep copies of correspondence and send it recorded delivery if you can.

Good luck

MM3_2

I called Halifax Collections this morning and ended up in tears. It is so frustrating and they say that they won't refund the money. They questioned why we'd been drawing cash out of our accout, why our rent was as much as it was and said unless I could prove the arrears on my rent and that the money was supposed to be for rent, they wouldn't pay it back. But they wanted proof on letterhead that there are rent arrears and my landlord is a private individual, so doesn't have a letterhead. I asked for a complaints number and was told I wasn't allowed to complain! They said I should have made an arrangement with them, but they wouldn't let me becuase they said I'd had a previous arrangement. I also explained that we hadn't got any money coming in as we were waiting for housing benefit to be assessed and what they have taken money from was some of the back dated housing benefit.

They were just so argumentative and rude to me and I kept explaining about my health problems and that I'd been trying to sort it out. I've ended up uncontrollably crying again and it just frustrates me because they shouldn't be allowed to be like this. If they were just understanding and nicer on the phone it would make it so much easier.

I have phnoed the halifax general complaints line and they are going to register my complaint. I've called Payplan and am waiting for them to call me back. Halifax complaints said I should go to the CAB, which I now need to try and do. Trouble is, the state I'm in I don't feel up to leaving the house.

matrix999

Thats terrible the way you have been treated!!

Give yourself sometime to calm down and get yourself together and make an appointment at the CAB, they will assist you greatly and may even speak to the Halifax on your behalf!

Keep the post up to date with how things go

MM3_2

Thanks Matrix. Luckily I'm not normally a person that takes things lying down! So, I was determined not to let this get to me and to keep on. I've been much better lately (certainly couldn't have dealt with all this a couple of months ago) and although I've had to keep asking people to hold whilst I regain my composure, I've managed to get somewhere on the phone! I've spoken to Payplan, who gave me something to quote to them regarding the 'first right of appropriation'. The woman didn't seem to know that much about it, but at least I had something to go on. So did a quick Google to find out a bit more about it and called the Halifax back. First attempt they cut me off! Second attempt I got through to someone and I could tell straight away that they were more civil than the others I'd spoken to. So I ran through everything with him briefly and asked if my housing benefit correspondance was enough to prove the money was for rent. Although the previous people I'd spoken to (including a manager) insisted this wasn't enough and that the council only pay the rent to the landlord (not true - it's paid direct to me) this guy said that was sufficient and if I pop into the branch with all the correspondance and as much other paperwork as I feel is relevant, they will arrange to refund the money. He also went on to say that if I carry on as I am with Payplan, make a minimum payment to them that I can afford (probably a £1 per month!), they won't be able to accept this because they can only make one arrangement with me, which has ended. But, he said this was a good thing because it will then transfer to an external collection agency who will take the reduced arrangement and will be more realistic when looking at my circumstances. He also said that if I did these things it would stop the harrassing phonecalls from their department!

I was so impressed by this guy that I thanked him for being the only person with any decency and compassion that I have managed to speak to in his department and that I really appreciated his help and advice. Why can't they all be like that!

So it looks like I'm getting somewhere. I'm also just about to call the Co-Op about opening a Cashminder account so that I can get my money away from the Halifax. I'll probably also call CCCS and see if they might be more helpful when it comes to making the arrangements with creditors, as Payplan haven't been much help so far.

My husband also spoke to Housing Benefit toady as our rent is so much more than our benefit and they are sending us some forms - apparently we are elibable to claim another benefit that tops up the housing benefit. So things are looking much better.

I still HATE the Halifax though

Thank you all for listening to my troubles over the last two days and for your advice - it's really appreciated.

MM3_2

Just a quick update incase anyone is interested! I went into my Halifax branch armed with ALL my paperwork related to benefits, bills, etc - it's a big file and I think the sight of it frightened the poor woman! Anyway, I showed her the housing benefit correspondance that clearly showed that the funds credited to my account during the last two weeks were for backdated housing benefits from May to July. She called collections who were a bit arsey with her at first, but she kept repeating that the money going in the accout was for rent and basic living expenses. In the end, they obviously buckled, asked for my account number and processed the refund there and then. It should clear in my account within 3-5 days. So I got a result! I hope the horrid women that insisted I wasn't having it back find out I did get it - I told them my rent was more important than credit card arrears!

Xbigman

Brilliant. We love an update. :j
It sounds like your bank has some half decent caring employees. Now open that new account and bail out before one of the crappo employees tries this again.
Regards



X

TheBottomLine_2

Perhaps your paperwork file is so big the woman thought you might belt her with it.

I'm glad you got that sorted anyway. :beer:

MM3_2

Thanks guys - a heavily pregnant, hormonal mad woman brandishing a big, heavy file of paper - yep, she probably did anticipate a good beating if I didn't get my money back

I've called the Co-Op Bank but it takes three weeks to process the account application. I was going to see if any other banks do it any quicker....the sooner I move my money, the better. Espcially now I feel paranoid about using the account as the women was passing judgement on me because I'd been withdrawing cash from the account but not paying them! I feel like they are watching my every move looking for an excuse to grab my money again!