LTSB taking money for card payments out of acct whilst O?D

[Needabreak]

I have a credit card with LloydsTSB.

 

I have a £500 overdraft limit on my current account.

 

Whilst I was overdrawn they took more money out of this account to make a card payment.

 

I am on Job seekers allowance.

 

They have done it before (last month) and I had that refunded back after a fight.

 

Are they allowed to do this in my situation i.e on benefits and already in overdraft. I will now have interest charges added on my overdraft for the payment they took.

 

I am fuming and want to sort this once and for all.

 

PLEASE HELP

Edited February 27, 2009 by Needabreak
typo

[Needabreak]

Polite Bump

Please, if anyone has any known rules or something I can throw at them if this is not allowed or deemed to have broken any rules. I would like to phone them this afternoon and have a right go at them with ammunition I can back up.

[beavis123]

Yes they are allowed to do it, they call it "right of set off"

 

however, under Banking Code guidelines, it should not be used to the detriment of someones ability to pay priority bills.

 

This is an issue that has been highlighted in the media recently and there are related articles here....

 

BBC NEWS | Business | Banks taking 'payments by stealth'

 

BBC NEWS | Programmes | Moneybox | Have Your Say: Banks help themselves

 

BBC NEWS | UK | Banks 'take payments by stealth'

[gizmo111]

Yes they can do this under the right of offset. I suggest you open a bank account somewhere you do not owe money, and have your income paid in there.

[PeterAnderson]

A few weeks ago they did the same to me. I have about £9k on two cards and told them I could no longer afford the montly payments and offered them £5 per month; so 3-months later they just took the monthly payments anyway. I sent them a very 'tart' letter, they not only appologised, told me it would not happen again but gave me compensation.

[Needabreak]

A few weeks ago they did the same to me. I have about £9k on two cards and told them I could no longer afford the montly payments and offered them £5 per month; so 3-months later they just took the monthly payments anyway. I sent them a very 'tart' letter, they not only appologised, told me it would not happen again but gave me compensation.

 

Well done to you Peter. But I personally don't trust them to do anything they say they will do. I have been lied to and mislead in the past, they don't care as much as they purport to.

 

I Phoned them today and laid it on thick. They said they would refund the latest one within 7-10 days. They did this last time but I had to chase it after ten days but they did give it all back. I am paying them a token £1 a month at the moment.

 

I told them they were giving themselves preferential creditor status, and as I was on JSA they were taking my benefits that I had to live on.

 

I have set up new "Basic Bank account" with another bank and as soon as I have this refund I am going to put this account in a dormant state then SAR them with the intention of going for past bank charges. I have been with them for years and have paid loads of OD fees & charges in that time, so could mount up to a fair bit.

 

Now I'm on the war path with them. They caused it with their absolute disregard to my current difficult situation, after years of being a loyal customer.

 

NAB