Alliance withdraw overdraft

[tlrose]

Hi I recently sent my DPA to Alliance and Leicester, only to recieve a letter about 4 days later that they were withdrawing my overdraft because funding does not amount to £1000 a month. In the six years I have had this account the funding has never been at this level.

 

This just smacks of childish behaviour to me they know whats coming and are trying to get in there first.

 

My overdraft is £500 which of course I cant afford to repay in a lump so I have made an offer to pay them £15 a month which they will have to accept as I have sent them a income/expenditure breakdown. And thats all I can afford.

 

Has anybody else had this happen to them? I'm not worried cos when I get my charges back the overdraft'll be gone anyway.

[BankFodder]

Be very caBecause the bank may decide to simply to default to, and we are finding that when they are under threat like this that they tend to shortcut the rules. There is never read any proof that they did or did not contact you and people are simply finding that they have been defaulted without any communication even though they are actually required to contact you and try and work out some scheme of repayment before they moved to a default stage. I would recommend that you keep the regular eye on your entry in the credit reference agency.

You don't say how much the charges are or how much they are likely to be in your opinion. I would suggest that you send them in immediate letter by recorded delivery putting them on notice that you will be claiming charges and that therefore your overdraft is in dispute -- make it clear to them however that in the interests of good faith you will be continuing to make payments towards your overdraft until the dispute is settled. Whole point is to make sure that the bank is officially on notice that there is a dispute because they are not entitled under the banking code to register a default against you in those circumstances. You could put the matter completely beyond doubt by also serving them with a section 10 notice which appears in the template library. They are required by law to respond to this and if they failed to do so that went ahead to default you this would give you a more than a fighting chance when you finally came to challenge the default

reful here

[tlrose]

Thanks for that advice I have sent notice of dispute to them today.

[Stuart Shields]

Hi tlrose

 

typical of A&L - but just in case your situation changes with them (and also for anyone else in a similar position) there is nothing in the terms and conditions of the A&L account that says you have to pay in £1000 in a single transaction.

 

So that means you could deposit say £500, on the first of the month, withdraw that same £500 a week later, and then pay it in again before the end of the month. i've done it a number of times with no problem.

 

good luck anyway

stuart

[tlrose]

This topic was closed on 09 March 2019.

If you have a problem which is similar to the issues raised in this topic, then please start a new thread and you will get help and support there.

If you would like to post up some information which is relevant to this particular topic then please flag the issue up to the site team and the thread will be reopened.

- Consumer Action Group