Payments into closed accounts

[vegyjones]

In the Nationwide section, there has been an occurance

whereby a claim has gone the full 28 days with Nationwide

giving a defence!

 

The defence claimed that they had already paid the full settlement figure!

 

The claimant is now wondering if the refund went into his account

which has been closed for the last 2 to 3 years!

 

He has no access to that account any longer!

 

Should people with closed accounts be getting in touch with the bank

to reinstate their accounts, and is it fair for the banks to refund funds

into previously closed accounts.

 

This could affect people who have overdrafts that are outstanding,

in that the refund will be used by the bank to pay off the debt from the closed account.

[isie1980]

I will be claiming from the Nationwide later this year.

When I closed my account I was £800 overdrawn and repaying it through a debt management plan. Nationwide then offered to accept £400 in full and final settlement which I paid.

If I claim my £200 or so back in charges from them, they couldn't possibly credit the closed account with it, could they?

 

Think I'll need to specify payment by cheque in my letter somewhere.....

[Glenn UK]

The defendant cannot make a payment in secret and then enter a defence saying the claim is paid, especially into a closed account. If they are making a full settlement then they should have no problem sending the money to the claimant directly, not withstanding outstanding debts.

 

No the claimant shouldnt bother to re open or contact a bank where there is a closed account.

 

When it gets to the settlement stage the claimant should specify how they want the money paid. End of.

 

HTH

 

Glenn

[PhantomReclaimer]

In the Nationwide section, there has been an occurance

whereby a claim has gone the full 28 days with Nationwide

giving a defence!

 

The defence claimed that they had already paid the full settlement figure!

 

The claimant is now wondering if the refund went into his account

which has been closed for the last 2 to 3 years!

 

He has no access to that account any longer!

 

Should people with closed accounts be getting in touch with the bank

to reinstate their accounts, and is it fair for the banks to refund funds

into previously closed accounts.

 

This could affect people who have overdrafts that are outstanding,

in that the refund will be used by the bank to pay off the debt from the closed account.

 

If the account is closed then their defence will fail as he has no right to the money in it so he hasn't in fact been paid at all. In fact, I don't think money can even be paid into an account that has been closed.

 

P.

[PhantomReclaimer]

I will be claiming from the Nationwide later this year.

When I closed my account I was £800 overdrawn and repaying it through a debt management plan. Nationwide then offered to accept £400 in full and final settlement which I paid.

If I claim my £200 or so back in charges from them, they couldn't possibly credit the closed account with it, could they?

 

Think I'll need to specify payment by cheque in my letter somewhere.....

 

I don't think they could anyway because you have a contract with them to pay it off in installments. They can't just change their minds and take whatever they want from you.

 

P.

[ppauls150]

What people have to look at is several things. 1, this is your money and when they say they will pay you out make sure you tell them it is on your terms and not theirs how or who the money is paid to. If you have outstanding loans they cannot just offset this against what they owe you as long as the loan is not in default or with a dca as this is YOUR money and not theirs to do with what they like.

[brecken]

My account with Lloyds was closed with a balance outstanding of £402, when Lloyds settled they paid the £402 into the closed account to settle this fiqure, ( after all it was their money ) then sent me the balance by cheque.