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Query re: Debt and Child Trust Fund??


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Bank called me up yesterday chasing after my joint loan repayments, I said I can give you £4!! So they woman said 'oh I notice you have a considerable amount of money in your daughters Child Trust Fund... can we take a payment from that?'!!! Anyway I said absolutely not, but can they use that??

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I wasn't aware I could move it after its set up. I thought with it being a government set thing that it had to stay wherever you invested it.

 

I am seeing CAB on Weds, so will talk to them about moving it ASAP!

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I hope they don't touch it in the time between now and next week. But I have made a note of the telephone conversation and also mentioned when I went in branch yesterday to pay my £4 in.

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From the child trust fund web site :

Accessing the money

 

Your child will not normally be able to take the money out of their Child Trust Fund (CTF) account before they are 18 and it cannot be taken out by anybody else. The only exception to this is if the child is terminally ill.

Lula

 

Lula v Abbey - Settled

Lula v Abbey (2) - Settled

Lula v Abbey (3) - Stayed

 

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Ring them now and talk to them and tell them your predicament

afro_caribbean_1_067.jpg

Contact Us

 

Please use the details below to get in touch with us about the Child Trust Fund (CTF). We welcome your enquiries and aim to deal with them as quickly as possible.

You can contact us in the following ways:

 

 

By Phone

 

 

Call the CTF helpline between the hours of 8am and 8pm every day except Christmas day, Boxing day and New Years day.

0845 302 1470 (from within the UK),

Lula

 

Lula v Abbey - Settled

Lula v Abbey (2) - Settled

Lula v Abbey (3) - Stayed

 

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The fact that they have even suggested shows 2 things 1st they don't care to what depths they stoop I mean would anyone with any decency suggest taking a child's money for anything even if they could & 2 they don't understand the law.

 

Move the trust elsewhere & complain most profusely to the FSA........& tell the press............scumbags

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Could it have been a scare tactic?

 

she did say 'can we?' and not 'we will'

 

The account is in somone elses name so surely taking that money would be like my bank taking money from my friends account?

 

I'm not questioning the replys given but more just asking because I have a trust fund account for my daughter and the idea that this could happen is disturbing.

Edited by Happyfeet24

Capquest - No cca yet - OC sent what they think is a CCA - account on hold - no contact since

 

Lewis - Lost their tongue after cca request:roll: -

Now in default of my CCA request - still no contact since:D

 

Fredrickson - No cca yet - Now in default of my request - now stopped contact with me:rolleyes: **UPDATE** April - Sent back £1 p/o and gave up!!!!!!!!!!

 

1ST Credit - CCA request sent - now stopped contact with me

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Bank called me up yesterday chasing after my joint loan repayments, I said I can give you £4!! So they woman said 'oh I notice you have a considerable amount of money in your daughters Child Trust Fund... can we take a payment from that?'!!! Anyway I said absolutely not, but can they use that??

 

 

 

:eek: Thats disgusting!...what bank is it?

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Hi Vimto,

 

I would call the Financial Ombudsman Service first thing on Monday and report them. At the beginning of January barclaycard took money from my Barclays account to offset against my barclaycard account even though the account is in dispute. They took the money on the same day my child benefit arrived (for almost exactly the same amount). I hadn't even paid the mortgage. I called the FOS immediately and they were appalled and gave me a reference number (and the direct Barclays complaints number), and Barclaycard had to refund the money. Exactly the same thing happened to another CAG member in the same week. It's in the Terms and Conditions that they can offset funds if you have enough 'disposable income', but I am absolutely sure they cannot touch the CTF and the fact that they even suggested this should definitely be reported to the FOS.

 

DD

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I haven't managed to get through yet so no update... however I am going to look into making a complaint as I am scared witless that they would even consider taking my childs money to pay of debt mysellf and my ex made!!!

And to clarify, yes they did actually ask if they could take the money... but I am disgusted with even the suggestion!

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Could it have been a scare tactic?

 

she did say 'can we?' and not 'we will'

 

The account is in somone elses name so surely taking that money would be like my bank taking money from my friends account?

 

I'm not questioning the replys given but more just asking because I have a trust fund account for my daughter and the idea that this could happen is disturbing.

 

It does not matter in what terms they couched the request the fact is they did & it's still wrong & unlawful & to even suggest it is unconscionable

 

You MUST report them

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It does not matter in what terms they couched the request the fact is they did & it's still wrong & unlawful & to even suggest it is unconscionable

 

You MUST report them

 

I completely agree. I was just pointing out that it won't happen.

 

The person that asked was completely in the wrong to do so and action should certainly be taken.

Capquest - No cca yet - OC sent what they think is a CCA - account on hold - no contact since

 

Lewis - Lost their tongue after cca request:roll: -

Now in default of my CCA request - still no contact since:D

 

Fredrickson - No cca yet - Now in default of my request - now stopped contact with me:rolleyes: **UPDATE** April - Sent back £1 p/o and gave up!!!!!!!!!!

 

1ST Credit - CCA request sent - now stopped contact with me

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Agreed but I think the point should be reinforced that this 'person' wanted to take money from a child's account (Child Trust or not) to pay another family members totally unrelated debt. What would have happened had it just been simple deposit account

 

It's an utter disgrace & MUST be reported

 

Myself I would be demanded their head on a platter because they are not a fit person to have access to someone's else's money

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The banks do write it into their T's & C's that they can move money from one account to another if there is a shortfall. They don't have to tell you they are doing it either. BUT, a trust fund is not your account, you are holding it in trust for a child, even if you make contributions towards it.

 

I would contact my MP's office and make a fuss. You don't need to speak to your MP, jut give the people in their local office the tale, and ask them to contact your bank and tell them to STOP this course of action.

 

It's nothing less than intimidation, which goes against the OFT guidelines, and the bank could do with a strong letter to go over the call and what was said, under their own complaints procedure.

 

Grab 'em by the short and curlies, and keep pulling until they pack in being such silly sods!

Be good to those who give you advice that helps - click the star to give them your thanks by way of a reputation credit.

 

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The bank will surely require the consent of the trustee to access money. The money does not belong to the trustee but to the child. I think they are trying it on and under no circumstances agree to let them have a penny. Move the money as you have been advised to do to at least remove the worry that the bank may take it. There is no rule imposed by the government that prevents you from moving the account

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Correct Agent Mulder However even if the trustee DID give such consent they could be in breach of their fiduciary duty.

 

The point is that no matter what sort of account it is it was disgusting that they even asked for money to be transferred from a kids account to pay debits on another account albeit a relatives

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For those of you that I asked last week I have called the CTF Helpline. There is no way HSBC can pay my debt using my daughters trust fund. However I am still making a complaint and also moving the trust fund to another bank. I know someone asked how to do it, but not sure who... all you need is the unique reference number of your CTF, call up a new bank and give them the details. Apparently it'll be moved over after they have posted out a few papers to sign!

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