ReikiAnge Posted June 16, 2009 Report Share Posted June 16, 2009 We're not having the best time financially. Understatement. Our bank haven't exactly been great recently either. We've been paying what we can afford, when we have it and trying to keep companies up to date. Anyway, despite us advising Rob's c/card company, which is also our bank, that we're having problems, and sending them a minimal payment last week, they have taken a payment from his account today for way more than we can afford He has never paid a direct debit to them from this account and there is no direct debit set up, they've just taken it. Can they do this? The money is owed to the credit card company, but can they just take money from a current account like that, without his permission? I'm furious, we're screwed. I don't get how they can just take money like that Most of what he paid in last week in earnings, which we'd have used for all sorts of things, has now gone. S**t. If they can, we're going to have to try to move everything to a different account where the bank is not associated with anything we owe. It's only because the bank and card company are associated that they've been able to do this. Link to comment Share on other sites More sharing options...
cycas Posted June 16, 2009 Report Share Posted June 16, 2009 (edited) Ange, have you talked to the bank about this - it's definitely not a mistake? Banks do (or did) have more cross-fertilisation between accounts than I am comfortable with, personally : my mother in law worked for a bank branch, and I was a bit when she mentioned that she'd had a look in his account and at his credit card (which was not even with the same bank branch, but was with a distance banking service run by the same company) Edited June 16, 2009 by cycas Link to comment Share on other sites More sharing options...
owl Posted June 16, 2009 Report Share Posted June 16, 2009 Unfortunately, yes, they can. Safest to move to a different bank. Link to comment Share on other sites More sharing options...
ReikiAnge Posted June 16, 2009 Author Report Share Posted June 16, 2009 Ange, have you talked to the bank about this - it's definitely not a mistake? Not yet as I've just noticed and Rob's out tonight and it's his account/card so they won't talk to me. Which is probably a good thing the way I'm feeling! I don't think it's a mistake though, he's never made a payment to them from this account other than by cheque, we used a different account previously for direct debits until we had problems with that one. Unfortunately, yes, they can. Safest to move to a different bank. Even without telling you they're going to do it? B*st*rds. Link to comment Share on other sites More sharing options...
celeste Posted June 16, 2009 Report Share Posted June 16, 2009 Even without telling you they're going to do it? B*st*rds. I always thought they had to give you notice too ......bunch of feckers. Link to comment Share on other sites More sharing options...
blackmagic Posted June 16, 2009 Report Share Posted June 16, 2009 I think when it is their own debt ( same bank) they can. It may say so in the terms and conditions for the credit card. If a direct debt is increased then yes, you have to be told in advance, but this is not a DD. Link to comment Share on other sites More sharing options...
Happylittlegreensquirrel Posted June 16, 2009 Report Share Posted June 16, 2009 (edited) If you are struggling to pay off a credit card and getting into debt please consider closing the Credit Card account and and get the interest frozen as it can really run away with you quickly A couple I know started off having problems with Credit Cards payments about 5 years when they had about 4k spread over a few cards , they started making minimum payments, moving money from one card to another and defaulting some months. I know they said that the bank did start taking money direct from her account ( was the same bank that issued the card ) and that made it worse as they had to use other cards to pay household bills By late last year the debt had grown to nearly 30 k and most of it had been sold on to debt collecting agencys ( thankfully with all the interest stopped ) and they had to arrange multiple payment palns which is going to take years and year to clear it all and so much of it was charges and intrest I know Martins Money saving site has a section on credit cards and he like me is a not a great fan of them unless you can clear them each month but it may have some helpfull advice http://www.moneysavingexpert.com/cards/ I know its hard when money is tight ( I really do ) but please please don't let credit card debt get out of hand Sam x Edited June 16, 2009 by Happylittlegreensquirrel to add link Link to comment Share on other sites More sharing options...
houndzrus Posted June 16, 2009 Report Share Posted June 16, 2009 I didn't know they could do that Hope it gets sorted Link to comment Share on other sites More sharing options...
Hayley Posted June 16, 2009 Report Share Posted June 16, 2009 I know from personal experience that this can happen. It is called right to off-set which means that when you have fallen into arrears with payments to a credit card or loan and you also hold a current account with the same company, they can use the "Right to Off-Set" to take funds from your current account (without your permission!) to bring the debt back up-to-date. This definition is from Payplan's website which also has a wealth of other debt related info. http://www.payplan.com Link to comment Share on other sites More sharing options...
snow Posted June 16, 2009 Report Share Posted June 16, 2009 Sorry Ange yes they can, which is precisely why we have 2 bank accounts and 5 savings accounts spread over different banks & building societies, we lose out on interest that way but having had similar happen to us many years ago (they cleaned out our savings account to pay off an overdraft facility they withdrew with 1 weeks notice) I will never ever again have my credit card with my bank or my savings with my bank. It's also one of the reasons why I have been appalled recently by the huge take overs going on giving us customers less choice and far less protection from this kind of behaviour - and is another reason why the savings are split between 5 different accounts as we had our savings all in one place with Portman and they got taken over by Nationwide who is our main bank account holder - needless to say we whipped the cash out instantly and split it up so that it's not at risk again. (That makes it sound like we have thousands - and we most certainly don't *laughs* its a few hundred or so, mostly my or hubbys birthday/xmas pressies which we both like to save up towards expensive purchases - in my case it's replacement/upgraded pc money). Link to comment Share on other sites More sharing options...
K9Fran Posted June 16, 2009 Report Share Posted June 16, 2009 As others have said, yes, under the right terms and conditions I believe they can do it. I manage our joint account very tightly - only direct debits and standing orders go out of it and I transfer the balance to another account with a different bank where it is the only account I hold with them. Link to comment Share on other sites More sharing options...
Mrs B Posted June 16, 2009 Report Share Posted June 16, 2009 (edited) Sorry about your problems Ange. From my understanding of these things, the best advice to anyone with a Bank Account and a Credit Card is never to have both with the same "organisation". And I've heard discussions on money type programmes about money being taken from accounts and put towards debts - and this being legal. Must admit that it's not something I have a problem with, but even so I am careful to keep everything separately so nothing can be used between accounts. Reiterate Sam's advice too, get yourself over to MoneySavingExpert and read up/ask questions there. The information given on the main site is sound, and on the Forum it's the usual experts and novices - but many people have been there, done that, and can give really helpful advice. Edited June 16, 2009 by Mrs B Link to comment Share on other sites More sharing options...
ReikiAnge Posted June 16, 2009 Author Report Share Posted June 16, 2009 Thanks for the info We know credit card debt isn't a good plan - but sometimes life doesn't quite go to plan. Link to comment Share on other sites More sharing options...
Brenda Posted June 16, 2009 Report Share Posted June 16, 2009 Thanks for the info And yes we know credit card debt isn't a good plan - but sometimes life doesn't quite go to plan. I understand, we got into the same mess. We used credit cards for food shopping and petrol after OH was made redundant and in a far lower paid job, just wasn't the money coming in to pay for everything. I wouldn't have used credit cards if I didn't have to, but at the time, needs must. Thankfully things are easier for us now, but you do have my utmost sympathy & understanding. Link to comment Share on other sites More sharing options...
rufus the wonderdog Posted June 16, 2009 Report Share Posted June 16, 2009 Thanks for the info And yes we know credit card debt isn't a good plan - but sometimes life doesn't quite go to plan. I know how it feels when life jumps up and bites you Ange - credit cards get used even if you wouldn't normally. And sorry to say, if the card and your current account are with the same bank they do usually have the right to take money from your current account, without giving you notice, if the credit card payments are falling into arrears. I paid ours a week late a couple of months ago, I just forgot the date, and the same thing happened to us. What was really annoying was that I had made the payment and while it was reaching the account they took the payment direct from the current account meaning they got double money that month - and they wouldn't refund it Unfortunately all this stuff is contained in the very small print and if we're honest, which of us does trawl all the way through that stuff. But, and it's a big but - if you have already spoken to the bank and to the credit card company and have informed them of your current financial situation and have made an arrangement to pay a lesser amount than the minimum monthly payment, this should not have happened. In that case, contact the bank first thing in the morning and give them hell In the meanwhile all I can do to help is give you a Link to comment Share on other sites More sharing options...
Recommended Posts