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right of set off for old account


matt1983
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Hi

 

Posting in this forum as wasn't sure where else this would fit.

 

I'm a bit concerned about something that has just come to light for me

- the right for banks to 'set off', i.e. taking money from an account in credit to pay off a debt.

 

I had a student bank account with HSBC ten years ago and had an overdraft of £1000.

 

I defaulted on this and they closed the account when I got into financial problems.

 

I was with CCCS for a bit on a payment plan but after two years stopped paying.

 

I used to get the odd letters from debt companies about the account but from my understanding this debt (about £700) is now statute barred and no CCJ was ever issued.

 

Last year I got an account with First Direct and I am suddenly worrying whether HSBC will try and take the £700 from my current account.

 

They haven't contacted me about this, and I haven't told them, but surely they must know?

Or will HSBC have 'written off' the amount when they sold the debt on?

 

I didn't realise the set off rules when I opened FD account, not sure whether I should contact HSBC to make an offer of repayment on the old account? :???:

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How old were you?

 

 

(from my phone)

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no they cant.

 

to be doubly sure its SB'ed and sold

check your CRA file

 

dx

please don't hit Quote...just type we know what we said earlier..

DCA's view debtors as suckers, marks and mugs

NO DCA has ANY legal powers whatsoever on ANY debt no matter what it's Type

and they

are NOT and can NEVER  be BAILIFFS. even if a debt has been to court..

If everyone stopped blindly paying DCA's Tomorrow, their industry would collapse overnight... 

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Thanks dx, I have looked at my credit file with Experian online and the account is not showing. I remember getting a paper file a fe wyears back and the account was on there then, but with a different owner - a debt collection agency.

 

So because of the SB they definitely can't take the money now?

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no and i bet the lasttime you look

they were not listed as the owner anyhow?

 

dx

please don't hit Quote...just type we know what we said earlier..

DCA's view debtors as suckers, marks and mugs

NO DCA has ANY legal powers whatsoever on ANY debt no matter what it's Type

and they

are NOT and can NEVER  be BAILIFFS. even if a debt has been to court..

If everyone stopped blindly paying DCA's Tomorrow, their industry would collapse overnight... 

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no it was another company, mackenzie I think. does that mean HSBC sold the debt to them, and cannot now take it from me? Sorry if I'm being thick I'm just a bit concerned.

 

Yes they've sold it, MH specialise in unenforceable & Statute Barred debts. The bank will not be able to offset for two reasons, the first is it's statute barred & the second because they are no longer the owners of the debt.

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