I have 3 accounts with FD.

Credit card, current account, loan account.

My credit card account is now £900 in credit due to a major refund.

My current account is within its £250 o/d limit

My loan account is in default by 2 months payments

As the CC is a Credit agreement am I correct in thinking they CANNOT use the credit balance to pay any other accounts with FD? i.e. they do NOT have the right to roll up accounts as it were but IF the credit balance was in my current account they could?

because I am behind on loan payments they have frozen my card so I cannot use the huge amount of credit balance on it at the moment.

What can I do?

cheers,

Lisa

Hi, Lisa.

I think they can 'offset' your accounts, and I'm not sure what you can do.

I'll have a look around.

Regards.

Scott.

they have just moved the credit amount this morning to my current account saying that they have authority to do so.

I think they can't as a credit card is a regulated account under Consumer Credit Act and cannot be subjected to 'free' movement of funds at their request.

any thoughts please?

FD have terminated my Current, Credit card and Loan account.

The payment I was making to the loan account is now 'bouncing'.

Have now had letter from MCS telling me I should deal with them ( I know they are actually FD in disguise ).

What is the legal situation now that they have terminated my account?

thanks,

Lisa

Everyone Should Either Call Jason Sharpe Head Of Customer Service Direct Number 0113 236 7070 Or Better Still The Big Boss Chris Pillings Direct Number 0113 276 6890 And Let Them Know How They Are Terminating Peoples Accounts. Call Now!!!!!

It would appear that they close all accounts then bundle any loan or credit card debts into being an overdraft on the current account.

This way they think they are able to bypass the CCA 1974, I am not sure if this is legal or they are chancing their arm.

Hi - this happened to me just over 3.5 years ago. Does anyone have an update on whether this was legal? Thanks

It would appear that they close all accounts then bundle any loan or credit card debts into being an overdraft on the current account.

 

This way they think they are able to bypass the CCA 1974, I am not sure if this is legal or they are chancing their arm.

How can they close all accounts and yet have an overdraft on a current account?

I have a few accounts with First Direct and haven't yet had any problems with them, but you never know do you.

They've closed my current account this morning- just about to start a separate thread. Have had some serious financial issues in the last 18 months, with my wife having cancer and me losing my job due to having to take time off. The bank have been made aware of this on several occassions.

hi all, I defaulted on First Direct Loan and a FD credit card because of ill health.

FD have lumped both debts together and sent to HSBC in-house collection people MCS who are now demanding payment.

This is not acceptable, is it? How can they be allowed to consolidate into one account?

I have an incurable life threatening illness - what can I do about this please?

thank you

Lisa

matters not

dca's have no powers anyhow.

dx

thank you,

so can I ignore there demands for payment and demands for income and expenditure reports now?

I am too ill to deal with this to be honest

thank you

Lisa

This is something that HSBC likes to do. Usually they would insist you have a Managed loan.. but presumably because of your illness they are not able to do this. Both debts are covered under the CCA1974 so I imagine that yes, they can combine for collection purposes.

Questions:

Are there any charges (default/penalty/late payment) for either loan or cc.

Was any PPI added to either loan or cc

Have you made FD aware of your illness and lack of income due to this?

Do you have any assets, property, etc?

two threads merged

please keep to one thread per debt.

dx

I have a property with zero equity and my car and thats it.

Should I offer £1 per month and that is it?

There is no PPI on anything and I am unsure on penalty charges etc. I assume I will need to SAR to First Direct to find all this out?

thanks again and sorry for the double thread, my head is all over the place at the moment

Lisa

Yes, if you require statements and other data regarding your accounts then you would need to send SAR. This will cost you £10.00 - you will find a draft letter in the CAG library, which is linked at the top of each screen.

It might be an idea to write to Head office, explain your situation and offer the £1.00 at the same time - although this does worry me a little as it is likely that once they know of your terminal illness they might attempt to put a charging order on your property - lack of equity or not. I will flag your thread for more imput.

http://www.consumeractiongroup.co.uk/forum/content.php?827-Examples-of-unfair-treament

It has also been suggested that once you have your SAR data, you look into whether you have been a victim of unfair treatment by the bank.

Have a read of the article in the link above and also all the BCOBs articles that are listed in my signature and highlighted in green

Hi guys, me again, still hanging on and still paying MCS a £1 per month.

I can confirm that they have lumped all my accounts (credit card, unsecured loan and current account) into one for repayment purposes and classed it as an unsecured loan on my credit file.

Now, am I not right in thinking that an unsecured loan is just that, not secured on anything? So, can they really go for a charging order on a property with no equity?

I am going to be paying this £1 per month for the next 8000 months. Should I just sit back and let it happen at £1 per month?

thanks,

Lisa.

did you ever fire off any CCA's ?

dx

I got the Loan Agreement document for sure, I will need to check files regarding the credit card application and let you know.

thanks, Lisa

Hi guys, me again, still hanging on and still paying MCS a £1 per month.

 

I can confirm that they have lumped all my accounts (credit card, unsecured loan and current account) into one for repayment purposes and classed it as an unsecured loan on my credit file.

 

Now, am I not right in thinking that an unsecured loan is just that, not secured on anything? So, can they really go for a charging order on a property with no equity?

 

I am going to be paying this £1 per month for the next 8000 months. Should I just sit back and let it happen at £1 per month?

 

thanks,

 

Lisa.

Unsecured is just that.. unsecured against any asset. However, it has been known for creditors to apply for a charging order, but they can only do that if they issue a claim first and then win.

If at any time you are in a position to increase your payments, then do so. If they are not going to get anything back then I don't think it would be in their interest to try anything with regard to your property. But whilst you are making the token payment then you are acknowledging liability for the debts.

Okay, My current account was in credit, my credit card was in credit (due to a refund) and my loan account was behind.

So, they combined and offset the loan account balance with the credit card credit balance, and my current account credit balance.

The unsecured loan paperwork I have, and it looks ok.

It seems that the best thing to do is lie low and keep paying the £1 per month - yes?

Lisa

hi all, me again.

MCS are now telling me that the £1 per month agreement has expired. Funny that as I am paying £1 per month automatically by standing order, and they are still accepting it.

Do I just keep plodding on and paying this £1 and leave it up to them to take any further action should they be so inclined?

thanks, Lisa

yep doing ok

dx

Hi All,

So First Direct can combine loan and any other account if one is in default without consent, call it an overdraft and its still legal?

How does that work?

AA