Bank Acting Wrong? Please help

[m3man]

Hi fellow CAGGERS.

 

My wife has a credit card with Lloyds TSB and a current account. We are challenging them on the CCA1974 Section 77/78 rule. The card has approx £8k on it and the account was overdrawn by £150 approx. What we did was pay the overdraft off and leave the account/s dormant until resolved.

 

However, Lloyds TSB have taken the funds from the current account to take it back up to £150 overdrawn, is this legally right? Can they do this?

[flyingdoc]

Banks reserve the right to "offset" accounts against each other

 

if you have more than one account with a bank and they think you owe them money they will take it out of any account they have control over.

 

Whether it is legal or right seems not to matter to the banks - they do it - they control the money - nothing you can do about it.

[m3man]

OK, even if it takes the account back into overdraft?

[flyingdoc]

yep and they will continue to do so so that your current account will get more and more overdrawn as the payments are due to the CC.

 

That way even if the CC is unenforceable they have transferred some of the debt to the current account, which has no CCA agreement and they can then pursue you for the debt.

 

Personally I would clear the current account and CLOSE it.