Account OD...can payments still be taken?

[danworg]

Hello...this is my first time on the forum,so i apologise in advance for not doing something correct.

To cut a long story short i have entered into a dmp with cccs who are setting this up now with my creditors.The problem i have is that one of my creditors..wonga...are due to take a payment from my bank account in the next few days.Now i am obviously not able to pay them as i have a dmp in process,but wonga insist they will try to take payment from the account.Knowing this would happen under advice from CCCS i opened another account with my bank (barclays),a basic account as the dmp will include an overdraft from the previous bank account that WONGA will try to take payment from....

My question really is when WONGA do try to take funds from my old account (which is maxed out with the overdraft) will Barclays transfer funds from my new account to the old account to satisfy WONGA or are they not able to transfer the funds without my permission?

 

Sorry for the long winded attempt but i am very worried that funds will be used from one account to satisfy a creditor on another account.

 

Thanks in advance.

[danworg]

Sorry....any help please anyone?

 

Many Thanks

[bluedogx]

Sorry....any help please anyone?

 

Many Thanks

 

Did you move banks or just open another account with the same one?

[danworg]

Under instructions from CCCS i opened a basic account with the same bank (Barclays)....they surely wont be able to transfer funds from the basic new account to the old account to satisy Wonga repayments...will they??

[bluedogx]

Under instructions from CCCS i opened a basic account with the same bank (Barclays)....they surely wont be able to transfer funds from the basic new account to the old account to satisy Wonga repayments...will they??

 

Possibly not but they can transfer funds between accounts as part of their all sums due clause. This means they can take minimum payments for their own debts - overdraft, loans, cards etc. so if the payment to wonga makes you overdrawn then they can cover that with funds from your new account.

You would be better with a completely new bank.

 

B

[danworg]

But Barclays have an agrrement with CCCS to include the overdraft (max £300) in the debt management plan of which i have agreed with CCCS a monthly total to pay my creditors.So presumably as i am maxed out on the overdraft and Barclays have switched all direct debits from the old account to the new account then when WONGA try to take funds out they will not be able to because i will have no overdraft limit left?

I got all my tax credits and rent benefit transfered to the new account,as instructed by CCCS,so that no creditors could take any money for bills etc....but i am just worried that WONGA will manage to access funds if the bank moves the money around???

 

Thanks for your replies by the way.

[bluedogx]

That's good of Barclays to do that. Not many banks will. The problem is that wonga take direct payments rather than standing orders or direct debits. You could check with Barclays that your old account has been frozen and that no more payments will be made?

 

B

[danworg]

Apparently it is an agreement they have with CCCS to deal with customers who have to include an overdraft in their DMP.

Surely no payments can come out of a bank account if it has reached the maximum overdraft limit?.....they would just refuse a payment...wouldn't they?

 

Or am i missing something?

 

Thanks

[danworg]

Hello,

I have an account with Barclays that is maxed out on an OD £300 and i am entering into a DMP with CCCS.

What i am worried about is that a creditor (WONGA) are due to take a payment of £800+ out of the account on Saturday (repayment date)...

Will Barclays honour the payment? which will obviously send me massively OD or will they take money i have in another account to pay WONGA?

Barclays are including the first OD account in the DMP and have allowed me to open a basic account so that i can recieve my benefits and make utility bill payments...surely they wont allow WONGA to take money from the account...will they?

[bluedogx]

If Barclays have this agreement then it shouldn't happen. Always worth checking though.

[slick132]

Hi Danworg,

 

I see this has already been discussed in the Paydayloans forum on another thread. Please keep to one thread or the other.

 

Are Wonga included in the CCCS DMP arrangements ?

 

I would write urgently to Barclays saying that you do not authorise them to make any payment to Wonga, from either a/c. They may say you have to speak to Wonga about this and that they cannot stop payments that are demanded through a "Continuous Payment Authority".

 

To keep your benefits money safe, you should really have opened the 2nd a/c at another bank. You should still consider doing this and you should be able to get a basic a/c elsewhere.

 

The other way to tackle the threat of Wonga getting your money is to:-

 

1. Send Barclays a letter of Appropriation confirming that the money in the 2nd a/c is from Benefits and must remain solely for the use of your priority debts (rent, Council Tax, food) for you and your family. See the LoA example here - http://www.consumeractiongroup.co.uk/forum/showthread.php?36790-Is-the-bank-taking-your-Benefits&p=289030&viewfull=1#post289030

 

2. Tell Barclays that they must not pay Wonga as it would take you over your £300 o/d limit.

 

3. Tell Barclays they must not transfer any of your Benefits money into the 1st a/c as that would put it at risk from Wonga's demands.

 

You must then decide how to deal with Wonga and this will best be discussed in the Paydayloans forum.

 

[dx100uk]

threads merged

 

dx

[danworg]

oopps...sorry about that...i should have realised not to open two threads about the same subject..sorry.

 

Thanks for the advice so far....

I still fail to see how Barclays will allow Wonga to take money(£800) from an account that has already reached it's maximum overdraft limit(£300)?

I mean if i go to the cash point now or try to transfer money via online banking it just says i haven't got enough funds to cover the transaction,so surely this is what would happen when WONGA try to take their payment?....

Edited February 23, 2012 by danworg

[danworg]

I have been in touch with CCCS and they have told me to save the worry by getting all my benefits paid into my wifes account,of which i have done straight away this morning.I will now close the new basic account down and deal with all the creditors via CCCS.

Thanks for all the replies .....this forum certainly has good information and people willing to give advice.