default on joint account yet taken all money (wages and tax creits )

[kat123]

A long story to tell. We (hubby and I ) have a joint account but I also have my own account both with natwest. We recently had a default notice on our overdraft for our joint account. I phoned them in the time frame given and arranged a payment fee monthly for our joint account. I then found out two days ago that all my wages and working tax /child tax credit everything paid in to my own account had vanished. All my direct debits and standing orders cancelled from my normal own account. When I phoned them they said because one account was non opperational it makes my account also. Anyhow to cut the story short I hadn't realised this was going to happen (even though the rude lasy on the phone from the bank) said it was all in the default notice! It wasn't all that was in it was a final demand on the joint account. So all my D.D standing orders, rent council tax everything has been cancelled. They have taken my whole months wage and tax credits which has left me with Zero, no rent, food, petrol, no normal day living for my 18 month baby. How can they take my whole months wage leaving me nothing and expect further payment? even to take my babies nursery and food money, I can't work if he isn't in nursery it is a vicious circle........... hope it makes sense? Can they do this?

[kat123]

yes I phoned them in the default notice time frame and arranged to pay back £100 per month for the joint account-this money came from my own account also natwest! at the time they said my normal account was opperational so accepted but all of a sudden it is now non opperational and they say it was on the original default notice. It wasn't the default asked for repayment of our joint account. When speaking on the phone they say that both accounts were stated and because one is in trouble the other gets taken in to account.. They also added that I was misinformed by other colleagues (how useful are they!)

[mrsfoot]

Kat, first thing monday you need to contact bank. they have full right to take

money from your personal account and pay off joint account, however they cannot take money

that is not there so contact tax helpline monday and change over bank details so you have your

credits paid inot another account. Contact DWP and explain the position, even of you are

working you can ask to aply for a crisis loan to cover the childcare fee's

[mrsfoot] 2:14 pm: crisis loan can be sorted within a day

[mrsfoot]

Have you any evidence for the repayment plan you agreed to?

[kat123]

No evidence as it was done through the same managemnt team at natwest and I have just paid monthly payments which show an ammount coming out of my account but no formal aggreement. It was all done on the telephone and I never recieved paperwork from them to suggest. To be honest I thought it was all sorted by that phone call so thought no wiser (silly me now) I can tell long stories of the difficulties trying to originally contact them before it all happening! I even got put through to an estate agent and only after me spilling my full name account details etc the guy sait it wasn't natwest and that this always happens when calls are transfered through natwest department! all confidence lsot there!

[MR MONEY]

Kat...

NatWest are not allowed to take any form of DWP (tax creds) money put into your account while at CMS (credit management services).

What Natwest should have done was told you your account was in trouble and needs repayment to bring it back into credit...

Right now it sounds like your account is in the "recovery stage" and you will no longer be able to use your account and you must then make alturnative banking arrangements during and after the balance is repaid.

As for the DWP money put into your account - you can ask for an encashment of these funds as they were paid in while you were not notified that your account was with Natwest recovery and by law you are entitled to these funds - The Bank can not hold these funds as repayment of the balance...

You must get some form of proof sent to the bank ASAP from DWP advising that the amount in question was put into the account in error and you are entitled to these funds by law.

Do not come to a formal arrangement with Natwest until the funds are released by the bank... you local branch should be able to arrange an encashment on the spot once you tell them you are legally entitled to the funds by law !

[Tristesse]

The DWP Payment should not have been taken this is the money the government decrees you need to look after your child and none of it is spare to repay debts. I have heard of someone who managed to get the DWP to pull these funds back from the bank and then sent it in giro form. I agree that wages the bank can use to offset but not the child tax credit, and anyway I would of thought they would have to clearly inform you of their intention to do so?.

When you contact the DWP about the crises loan explain that because of the bank you will not be able to buy essential things for your child and ask them if they can reclaim the money from the bank.

[MR MONEY]

Hi kat...

 

Just been reading the above posts...

 

You are still entitled to the DWP funds paid into your sole account even if you aren't in agreement with NatWest to make monthly repayments on the joint account overdraft - The Bank can not hold DWP payments.

 

As you say the funds from your sole account "vanished" - The Bank should not have transferred any (DWP) funds from your sole account to the Joint account even if you are joint and severally liable for the Joint account with the overdraft... they still cant use the DWP payments to off off set the balance on the joint account.

 

Wages they can use... but DWP payments No No No !!!

 

If they have transferred your wages & the DWP payment you may only be able to get the DWP funds back. I suggest you contact DWP as I previously stated and advise them of "the serious situation & distress" the bank has put you through by holding your monthly payment.

 

DWP should be able to arrange for a fax to be sent to Natwest explaining that they are not allowed to hold the DWP payment.

If DWP cant fax it... get it in writting from you local DWP office and take that to your local branch and "Demand" an encashment via branch !!!

 

Let us know your next actions -