payment to closed accounts? *mods?*

**lelole** · 21st July 2006 12:35

Hi

I know that Halifax icon

have a tendancy to pay money into closed accounts and see that as settled, and I know that some people have been able to withdraw this when it is a bank account, by going to the counter and providing ID. This would be clearly quite difficult if the account is a credit card.

In my mind though, placing the money in to a dead account, esp a credit card one, is the equivalent of me owing them money and telling them I have put it in my kitchen drawer and they should come and get it when they have a moment.

It's clearly not acceptable as a form of payment. Has there been any definative answers on the legality of this yet? Where do we stand if we enter judgement or something, and they put the money in an account we cannot access? Does the court see this as reasonable?

Thanks

lelole

Similar Threads:

**LondonPam** · 21st July 2006 12:40

I had money paid to me for an account that was closed but they simply sent me a cheque. I work in I.T., designing banking systems for my sins lol and have never come across being able to post money to a closed account. The money usually goes into a suspense account and someone moves it to the appropriate place from there ie a cheque etc My daughter's account with MBNA icon

was closed and they sent her a cheque as well. Puzzled by those companies that don't do this

**thewifeandI** · 21st July 2006 14:04

Also make sure you don't inform the court that the claim is settled until you have your sweaty mitts on the money (but delay attempting to get it)!

**lelole** · 21st July 2006 15:02

They made me a small offer back before I went throught he court system, and they DID deposit it to my account which has been closed for 2 years! This was despite me accepting it as part payment and asking for a cheque specifically...

I only found out they had done this as I happened to call the customer service line while filling in MCOL claim form to find out what date my account opened!

Is the consensus then that anything other than a cheque in grubby paws is not a payment of the monies owed?

lelole

PS WIFEANDI what do you mean by delay attempting to get it?

**thewifeandI** · 21st July 2006 15:20

Sorry - it should read "DON'T delay..."

**thewifeandI** · 21st July 2006 15:23

Can you get to a branch with proof of ID and address and ask them to transfer it to your new account, or they can provide banker's draft for that amount that you can pay in yourself?

**lelole** · 21st July 2006 15:41

The trouble is is that the account is a credit card, so I expect the situation is slightly different - I don't think that the branches tend to deal with that. It may not be a problem in the end, because when I didn't recieve a cheque for the part payment I went ahead and claimed the full amount.

I am asking because (without going into too many details) they did make an offer (of settlement during claim) which I accepted with a time limit and a request it appear by cheque. It did not materialise and I have put a judgement through. I am just trying to find out the legalities because I have a feeling because of the way they have already been, and the things I have read, that they MAY have credited to the account, or may still do so, and wonder how that stands legally? After all I have not received it or any further communication?

lelole

**thewifeandI** · 21st July 2006 15:59

If it's a credit card and there's a balance on that card it would be usual to reduce the balance by the amount of the settlement. I'm not sure if you can force them to pay you directly in this situation.

Thinking about it more, I could see an argument for them to pay you the 8% s69 interest icon

and costs directly, but the charges and interest on charges used to reduce the balance, as this would restore the status quo. You should at least be able to get the first part as it refunding money that you have paid out to pursue the claim and the interest awarded by the court.

**dan-rides-bikes** · 21st July 2006 16:04

Originally Posted by thewifeandI

If it's a credit card and there's a balance on that card it would be usual to reduce the balance by the amount of the settlement. I'm not sure if you can force them to pay you directly in this situation.

why not ? its YOUR claim YOU should dictate where the money goes and not state the claim settled until it is where you want it, be that via cheque or a reduced balance

**dan-rides-bikes** · 21st July 2006 16:11

see

http://www.consumeractiongroup.co.uk...ghlight=cheque

**thewifeandI** · 21st July 2006 16:31

But bear in mind that the cases quoted in that thread were for current accounts, and appear to be ones where there is little or no outstanding amount due to the bank before settlement.

We're talking about a credit card here where the balance owing is usually (but not always) greater than the amount claimed. By repaying the charges and interest icon

back into that account the card balance is back where it should be (if the charges hadn't been applied in the first place). Of course, if there is little or no outstanding balance on the card account, then I fully agree with you.

I don't personally know if any people have managed to get a direct cheque payment in this situation. It's my personal view and I'm happy to be proved wrong.

**lelole** · 21st July 2006 17:46

Hi all

Actually in my case the Credit Card was closed by myself 2 years ago, after I (finally) paid off the outstanding balance.

So I have already restored the status quo myself!

I guess what we are saying in that case is that I am within my rights expecting a cheque, in my circumstances.

I must admit I hadn't even thought about a circumstance in which someone still owed money. I guess as you say in that situation it might be more acceptable for Halifax icon

to do that!

I will stand my ground and let you know what happens...

lelole

**Keithowedalot** · 21st July 2006 19:24

hey Lelole,

I am in a similar situation, Halifax icon

owe me money on a closed account, there 28 days ends on Monday and I've no idea what they are doing about settling the claim, I got a letter a few days ago stating they'd write to me seperately regarding my Credit Card, theres no sign yet!

**Keithowedalot** · 22nd July 2006 08:32

Letter received from Halifax icon

today to say they will settle by sending a cheque.

**thewifeandI** · 22nd July 2006 16:33

Originally Posted by lelole

Hi all

Actually in my case the Credit Card was closed by myself 2 years ago, after I (finally) paid off the outstanding balance.

So I have already restored the status quo myself!

I guess what we are saying in that case is that I am within my rights expecting a cheque, in my circumstances.

In that case a cheque is in order...!

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