They did it a year ago, keeping my money for weeks. Now they're doing it again because of my overdraft. I've been told this is illegal. If so, how can I recover my money quickly? Thanks in advance :)
2007-01-24 20:05:42 · 11 answers · asked by Carrie 5 in Business & Finance ➔ Personal Finance
they should really keep it until you can prove your trustworthy enough to handle your account. i would.
2007-01-24 20:14:08 · answer #1 · answered by Troubled Joe(the ghost of) 6 · 3⤊ 0⤋
It isn't a case of 'is it legal...?'. The Halifax operates a banking facility for your benefit and may or may not agree an overdraft. When money, from any source, is paid in to your account if you have exceeded any overdraft limit or gone overdrawn without permission the funds received by them on your account will be applied to regularising the situation. This means that if you are outside of your agreement with them they will automatically seek to restore order on your account. My suggestion is that you go and see them and ask for a bigger overdraft limit. They will want to go through your financial 'ins and outs' because they have to by law.
The other alternative is to attempt to open a new account elsewhere and have future benefits paid in to it. At present the Post Office will accomodate you, but even that facility is closing down. Be warned though, if you are not operating a current account within your agreements with the Halifax it is unlikely, when they do the credit checks, that any other bank or building society will be interested in taking you on.
Sorry.
2007-01-25 00:26:09 · answer #2 · answered by Anonymous · 0⤊ 0⤋
When you go to the bank again offer to pay so much a month. See if they will freeze the interest. Someone I know has the same situation but she is working and all her wages were put into bank and they kept putting the interest on each month and then she went in and offered a payment plan and they have agreed to it.
The other thing is get your benefit paid into a post office if you have one. It isn't easy to cope when you are on benefits I know and when you are offered what seems an easy way out you are tempted to take it.
Have a budget plan as well and write down everything you spend your money on to see where it goes. It is hard to keep out of debt and I can sympathise. I've been there and done all that and got the t.shirt. Best of luck
2007-01-24 23:26:59 · answer #3 · answered by Margaret D 1 · 1⤊ 0⤋
Its not illegal, and I don't know how you can get an overdraft if on benefits,
Open a post office account and it can go in directly,
Make an arrangement with the halifax to pay off your overdraft.
2007-01-24 21:37:30 · answer #4 · answered by Elle J Morgan 6 · 0⤊ 0⤋
Is your overdraft pre-agreed ?
If not, I don't think its illegal. If you have an overdraft and pay money in, the money can be used. In essence, i think all they are doing is replacing money you took from them.
I'm sorry you are in a financial tight spot, but going overdrawn without permission means you are now using other peoples money, so they are entitled to claw it back.
If your overdraft is pre-arranged then they should not be clawing it back, they should be leaving the account overdrawn and charging you interest on it.
They cannot move money from one account to another if they see you have money somewhere and move it to pay off an overdraft - that would be illegal.
CAB woudl be worth a call, as would the bank,
2007-01-25 01:37:41 · answer #5 · answered by Michael H 7 · 0⤊ 1⤋
I would speak to the bank & offer them a payment plan to clear the overdraft they may then release your funds because you need access to you money to offer a payment. The bank may be more understanding than you think. Good luck & hope it works for you.
2007-01-24 20:24:23 · answer #6 · answered by richardwales79 3 · 1⤊ 0⤋
It's not illegal, they're entitled to apply any monies received into your account towards repayment of any unauthorised overdraft.
I'd go and have a chat with them with a view to setting up some sort of repayment scheme. If you make that effort, they might be more understanding.
2007-01-25 03:19:23 · answer #7 · answered by champer 7 · 0⤊ 0⤋
If you are on benefits WHY are you using the overdraft, you know you cant afford it, so why use it and then moan about having to pay it back. you are obviously living above your means, sort your self out, tell them to cancel your overdraft facility, and start using your head, instead off your card.
2007-01-24 20:26:10 · answer #8 · answered by Anonymous · 3⤊ 1⤋
Banks have an amazing amount of terms and conditions that they get people to sign when they open their account etc, when if in fact you understood (or read) these terms you probably wouldn't sign. usually everything banks do, including withholding your money if you owe them money is totally within their rights as you have agreed to it previously.
Get hold of a copy of the terms you agreed to to make sure.
2007-01-24 20:13:50 · answer #9 · answered by Anonymous · 1⤊ 0⤋
All they want is their money - they don't care where it comes from, so if your benefits are being paid directly to your account, they will keep it, regardless of whether you can afford to live or not. I suggest you open another bank account, pay off your old one and close the account. Best of luck/
2007-01-24 20:12:59 · answer #10 · answered by Roxy 6 · 1⤊ 2⤋