Bank To Creditor Relationships

[TheAjudicator]

Hi

 

First posting here and I hope that I may find the answers:

 

I have several creditors and I have heard some rumblings from a friend who works for one that they would like to try a 3rd Part Debt Order (as I understand this is a one shot chance of clearing my bank account but they also have to have an association with my Bank but please correct me if I have been mis-informed).

 

My query is ....

 

I bank with the Coop

 

Due to a break up of a relationship and the unknowing use of certain financial facilities by my ex I have debts with Santander, Capital One, Marbles, JD Williams, Barclaycard, Bank of Scotland and Provident

 

Do any of these creditors have an association with the Coop Bank?? If not then can I rest easy until they obtain a CCJ ... I am currently paying via Payplan

 

Thank you in advance for any help or information that you provide

[cerberusalert]

The Coop is totally independent of them all. However a Third Party Debt Order can still be used.

 

This is most often used to ring-fence your bank account -- the order instructs your bank or building society to act as the third party here with the aim of using your funds to pay off your creditors. During this process you won’t be able to withdraw money from your account without permission. This method of debt recovery cannot, however, be used on a joint account unless all parties listed on the account are responsible for the debt in question.

 

This process can involve having your account(s) frozen for a period of time until a court decides whether to pay the money to your creditor. The judge here will be looking to see whether you have made all your order/judgement payments. If you haven’t met your commitments here then they may well approve the Third Party Debt Order to release your funds to your creditor.

 

The main problem that many people have with this route is that they don’t find out that their account is frozen until it actually happens. They won’t be notified until the deed is done to prevent them from withdrawing their cash and cleaning out the account. Once the account has been frozen there will be a court hearing where the judge will make a final decision on the case.

 

You will be allowed to dispute the order up to 3 days before your hearing if you do not agree with your creditor’s claims. If you do dispute what has happened then you should attend the hearing as well where you may be asked to state your case. You are also allowed to ask for funds to be released from a frozen account in some situations.

 

This is known as a Hardship Payment Order. The judge will, in this instance, tell the third party holding your account to give you some of the money in the account. You will have to prove that you (or your family/dependants) will suffer hardship without the money, however. If the judge ultimately finds in favour of your creditor then he/she will order the third party to release the necessary funds to them. This may also include extra money to cover their costs. If, however, you do not have enough funds in your account at the point that it was frozen to cover your debt then the third party can only pay out what was there at that point in time. If funds went in after the account was frozen they have no legal right to use these for this purpose.

[TheAjudicator]

cerberusalert

 

Many thanks for the quick reply. I have two further question

 

You have said that if I have not maintained payments to orders / judgements. Do I assume that the creditor is required to obtain a CCJ or such through the courts before he can use the 3rd party debt order and cannot do so without one.

 

I am now in a relationship with someone who lives in SE Asia and have had her name added to the bank account as she intends to move to the UK in the very near future, therefore does this means that they are still unable to use this sort of order

 

I ask this as I am now close to one of my creditors taking legal action

 

Again thank you very much for the help so far

[cerberusalert]

The creditor would first need to obtain a CCJ against you which you haven't settled or maintained payments on. If it is now a joint a/c they cannot use a 3PDO.

[TheAjudicator]

Many thanks cerberusalert, this has put my mind at rest.

 

I was a little worried that one creditor to whom I have a huge debt due to front loaded interest would have tried this option as I am about to retire and have a fairish size lump sum from my private pension being paid into the account.

 

Again many thanks