Blair Oliver Scott - Really Concerned

[Willo53]

Hi,

 

I have just been informed by Halifax that my Overdraft debt has been passed to their Recoveries team - Blair Oliver Scott. I had a feeling they would be passed it over to their recoveries team but did not know this was branded as another company.

 

The debt stands at £4012, my original overdraft was £2750 but had charges and went overdrawn andthe balance just grew.

 

I get paid on Wednesday into my Halifax Cardcash account and I worried sick they are going to snatch all my wages and transfer it against the debt. I had agreed to pay Halifax £100 a month starting from the 25th but I spoke to them today and they said the file was in the process of being passed over to BOS and could take 7-10 days and they will be in touch.

 

Should I:

 

1)Wait until Wednesday and draw all the money out in the hope they won't have had a chance to review

2)Sit tight and speak to BOS and agree an affordable payment plan e.g £75.00 a month

3)Open another account with new bank and dispute the balance with Halifax.

 

I have heard stories of BOS dipping into other accounts.

 

Really would appreciate some help on this.

 

Thanks

 

W

[Tingy]

Not sure - someone will be along who knows the answer. I do know if you have two accounts with the same bank they can legally take money from one to give to the other without your permission; whether or not this is the case here I do not know.

 

I would advise however that you open another basic bank account elsewhere just in case. It's better safe than sorry!

 

Apologies for not being able to answer your main question, but I'm sure someone will be along soon.

[Fred Bassett]

They can and do take money from other accounts. If I were you I would set up another bank account ASAP (not with another HBOS bank) and get your wages paid in there. There is potentially another option to ring fence your funds, but I'm not sure how this is done. Will you have time to open another account and get your pay directed into it though?

 

Regards.

 

Fred

[Fred Bassett]

Just noticed you've got 3 threads for the same topic. You'd be advised to ask the mods to merge these and keep them to one thread - hit the little triangle and the bottom of the thread to do this. If you need to get your post to the top of the pile, just type 'bump' in a new reply.

 

Regards.

 

Fred

[rebel11]

Hi Fred

 

The threads have now been merged.

[Willo53]

Cheers Fred,

 

Not enough time to open an account and get the wages changed unfortunetely.I have just gone onto my online banking and put a couple of standing orders to relatives on there, so that should detract them as they usually check to see whats due out of your account. I am going to have to try and get to the bank at 9 am Wed morning and draw all teh money out and then try and find another account.

 

I think I will really struggle to get another bank account set-up. Nightmare scenario this is!

[maroondevo52]

Hi, Willo.

 

I got a Natwest step account no probs and my credit score's worse than mince !!!

 

Oops going to delete this Hbos own them do they no !!!

[Willo53]

Pity Natwest closed my student account after I reclaimed bank charges in 2006 .

 

Might see if Barclays will set-up an account though.

[Deb T]

You should set up a parachute account away from Halifax etc. Some accounts listed will enable you to have a visa debit card without an overdraft and you'll be able to

pay bills from them and set up standing orders etc.

 

See here for which banks are connected. Remember to stay away from your own bank as they will and often do use 'setting off' as a means to obtaining some of what

is owed to them

 

The list http://www.payplan.com/pdf/bank_acc.pdf

[Willo53]

I've just done an online application with Santander and it gave me a referece number.It said I would receive a e-mail in the next few days statng the next steps in the process. It said once the account is opened would then receive my card, pin no and online bank details.

 

I am right in thinking that I have been accepted ha?

[Fred Bassett]

There is a way, but I'm not sure how, of formally telling your bank that the wages due to be paid into the account can not be used for any purpose other than what you intend them for. I've read on here of it being done, but I can't remember how. Anyone?

[Fred Bassett]

Could you ask your employers to give you a cheque on this occasion? It might work.

 

By the way, HSBC do a very good basic account with online banking facilities.

[Willo53]

Thanks.Just been through the santender application process and it ended by giving a reference number and advising I would receive an email in the next few days with the next steps.

 

I hope this is positive response and it means I have bee successful. I can deposit over £1500 per month into the account, so I guess they would want me to prove it.

[Willo53]

The cheque is a good idea but I doubt my company would do it without explanation and I don't really want to go there.I access to the money on Wednesday as I have got quite a few outgoings that need to paid.

 

Lets hope that the file takes a while to get to BOS and I get there first!

[harrassed senior]

If all else fails then I think this is what Fred was thinking about:

 

Banks are not allowed to use Housing Benefit or any other income related benefits to repay an overdraft as the law provides that a customer needs a minimum amount of money to live on.

This is called First Right of Appropriation

 

Even if an account is overdrawn, a customer can choose how any further money paid into the account is used (for example to pay rent) using this ‘first right of appropriation’. It is necessary however for the customer to contact their bank with new instructions, usually, each time they make a deposit.

Following further queries with Citizen’s Advice on the final sentence 'new instruction each time you made a deposit' they provided more detailed guidance: In the written instructions the customer gives the bank, the customer should ensure that s/he makes it clear if s/he wishes any regular payments or future deposits to the account to be used to pay for specific items. If the client does not make this clear, s/he will have to give the bank new instructions each time a deposit is made.

This "Right of Appropriation" allows a customer to assign any funds entering their account to specific events and needs, not just benefits.

This is something all the banks should be aware of, but are loathe to publicise. Some banks however do not understand this process since it is not very often used.

Further information is available at the following website http://www.adviceguide.org.uk/c_bank..._societies.pdf

Whilst a customer can try this, there are 2 possible problems;

1) Ideally, they should give the bank 7 days notice before the first Housing Benefit payment is due to be credited to their account. Otherwise the bank could disregard the request. 2) They may just disregard it anyway and swallow up the money. The customer would then have to complain and involve the banking Ombudsman etc and, eventually, get it resolved. This could take a few weeks and would not solve the immediate problem.

 

The Social Security Administration Act 1992 provides certain benefits such as Housing Benefit to be ‘inalienable’.

The legislation that can be quoted in any approach to or complaint to a bank should include section 187- "Subject to the provisions of this Act, every assignment of, or charge on-

(a) benefit as defined in section 122 of the Contributions and Benefits Act;

(b) any income-related benefit; or

© child benefit,

and every agreement to assign or charge such benefit shall be void; and, on the bankruptcy of the beneficiary, such benefit shall not pass to any trustee or other person acting on behalf of his creditors"

Information on the following website can help a customer claim back any resulting bank charges.

http://www.reclaimunfaircharges.com It is a free site – which also contains downloadable letters.

Please find below example letters – Right of Appropriation and Formal Complaint under the Consumer Credit Act 2006

Sample letter to bank

[Add Name and Address of Bank]

RIGHT OF APPROPRIATION

Dear Sir/Madam,

ACCOUNT NUMBER: xxxxxxxxx

I am writing to inform you that I am due to have Housing Benefit payments of £xxx paid into my account on xx/xx/xx, and I wish to use my first right of appropriation for this money, for the following purposes; Rent £xx

I have set up a standing order/direct debit/will withdraw the money for the above use, and I would be grateful if you would ensure that any other payments out of my account do not interfere with this withdrawal.

[Add details of the future regular payments if they will be regular payments of Housing Benefit.] Yours faithfully,

[signature]

[Enter your Address]

Sample complaint letter to bank

[Add Name and Address of Bank]

Dear Sir / madam,

RE: FORMAL COMPLAINT UNDER THE CONSUMER CREDIT ACT 2006

On DATE, I personally delivered the attached letter exercising my common law first right of appropriation in respect of payments in order to maintain my basic living requirements.

Instead of accepting this appropriation, your staff refused to abide by my common law rights. The bank has instead appropriated my payments for the purpose of paying an overdraft largely consisting of collection charges. I am aware of the FSA waiver (in respect of the current OFT test case), which expressly requires the bank to consider hardship. I am also aware of the Banking Code, which requires you to behave sympathetically.

Please consider this letter a formal complaint under your complaints handling scheme set up under the consumer credit act 2006. I request acknowledgement of this letter in a reasonable timeframe, with a copy of your companies’ complaint procedure.

Yours Sincerely

[signature]

[Enter your Address]

 

[harrassed senior]

If you are unable to get a basic bank account, one of these accounts is very useful:

 

http://www.mycashplus.co.uk/offers/cashplus/tabs/apbm.aspx?pc=GAW524C024BRA2&s_kwcid=TC|9845|cashplus||S||5309287829&gclid=CNSCsd2fkqUCFWr92Aod1S2lMA

[john 333]

they took my partners benefits out of her bank (Halifax) to offset a disputed overdraft. we ended up stuck in our tent in the rain with no money for petrol to get home.

 

Got it back a few days later though! (they picked on the wrong person when they stole her money!) lol

[Fred Bassett]

Thanks Senior, that is what I was after.

 

Regards.

 

Fred

[Willo53]

Thanks Guys.

 

Lets hope tomorrow goes smoothly and I should be safe. I will then need to concentrate on getting a new bank set-up before the December payday.

 

I guess BOS will be a difficult customer in agreeing a plan from what I have read already!

[The Debt Star]

they took my partners benefits out of her bank (Halifax) to offset a disputed overdraft. we ended up stuck in our tent in the rain with no money for petrol to get home.

 

Got it back a few days later though! (they picked on the wrong person when they stole her money!) lol

 

Good for you mate but just goes to show what horrible, horrible people these bankers can be

[Fred Bassett]

Thanks Guys.

 

Lets hope tomorrow goes smoothly and I should be safe. I will then need to concentrate on getting a new bank set-up before the December payday.

 

I guess BOS will be a difficult customer in agreeing a plan from what I have read already!

 

BoS can be as difficult as they like but ultimately, you can only pay back what you can afford. You decide that, not them, so if they try and get you to fill in expenditure and income forms tell them to get stuffed - they are not entitled to that information. Don't be dictated to. They won't like it but there's nothing they can do, so stop worrying.

 

Regards.

 

Fred