Gonna cut a long story very short and I would appreciate someone with proper knowledge to answer this please :) I have a loan out with HSBC and missed a few payments. After a lump sum went into my account, they then took 3 payments out in a lump sum, leaving me wiped out. I received no notification that they were going to do this. Is this legal? If it is not legal, could someone please let me know of any legislation about this, as I am intending to take this further with the bank and (if anyone here banks with HSBC) knows that they can be little bu**ers! Thanks in advance :)
2007-08-30 14:43:41 · 11 answers · asked by Louise 2 in Business & Finance ➔ Personal Finance
Oh, I'm in the UK .... that might be important!!
2007-08-30 14:44:18 · update #1
I'm afraid I'm going to agree with the other respondents in that I doubt you have any grievance against the bank in law.
When you opened the current account you would have agreed that they could use any money in that account against other monies owed to them, either existing at that time or at anytime in the future.
In the loan agreement you signed to agree to make repayments according to a set schedule. You did not, for whatever reason, keep up these repayments and so the missing ones are a debt due to the bank.
So, unfortunately, they are only acting in accordance with agreed terms.
Check your copies of the agreements to make sure that these clauses were included. They are pretty standard but you might be lucky if they are not there.
Having said that, it's pretty mean not to tell you they were going to do that.
2007-08-30 20:36:55 · answer #1 · answered by tringyokel 6 · 0⤊ 0⤋
I don't know about the UK, but in America, if you owe on a loan and you have funds in an account with the bank (I'm assuming your bank account and loan is with HSBC?) they absolutely have the legal right to take the payments you owe. Sorry- you gotta pay your debts just like everyone else. . . . .
2007-08-30 16:17:31 · answer #2 · answered by darylsgirl1114 4 · 0⤊ 0⤋
I hate to tell you this but no you have no case what so ever. In fact they were being nice to you by refunding your money on the late fees. When you put your daughters name on the account you gave her permission to use the account ALSO you gave the bank permission to use your account to right any other account that she may have been on by herself. Its in the rules and regulations that you get when you open your account. They did not have you give you any kind of warning about it either since they already stipulated such in the rules and regs. I see this happen a lot sorry to say so you are not only one to feel wronged about this. I think its a horrible way for banks to make money but they are not non-profit organizations. At the bank I work at they would not have refunded the money. I would ask the bank you left to about their refund policies and see if you make the right choice. If anything your daughter should have told you that she was having problems with her account that way you could have quickly taken her off yours then they would have no right to "move" the monies over. You do however have a small claims case against your daughter since YOU actually ended up paying her fees.
2016-04-02 08:16:00 · answer #3 · answered by Anonymous · 0⤊ 0⤋
Most loan agreements do give a bank the right to access your asset accounts held in that bank if you are in default. If it was an HSBC loan and an HSBC checking or savings account, the loan probably gave them the right to do that.
2007-08-30 14:51:13 · answer #4 · answered by open4one 7 · 1⤊ 0⤋
They can only do that if you bank with them and even so they cant just take all the cash that goes into the HSBC account, if you do have an account with them close it and go to citizens advice
2007-08-30 15:32:16 · answer #5 · answered by Anonymous · 0⤊ 0⤋
You have a loan and missed a few payments - you are at fault. The bank has every right to take what is due to it. It has the law behind it, you are the defaulter.
2007-08-30 20:57:45 · answer #6 · answered by CountTheDays 6 · 0⤊ 0⤋
Well, if you have set up automatice payment for a certain account, they will just take the money and use it to pay the loan, If you issue a check and you have no money in your checking account but have enough or sufficient in your savings account, then they will use that to cover the checking account so that your check will not insufficient.
2007-08-30 14:50:37 · answer #7 · answered by earth angel 4 · 0⤊ 0⤋
General answer, there is soooo much in the fine print these days you might want to read you loan papers in their entirety and see if they have written in a right to take funds for the payments.
If no such statement exists ask them to send you the paper you signed that gave them the right to take funds out of your account.
2007-08-30 14:54:04 · answer #8 · answered by Anonymous · 0⤊ 0⤋
It is perfectly legal. Company's that you owe enough money to can and will put leans against accounts for back pay not all company's do it but there are a handful of company's that do it they think what you owe them is substantial enough to go after you and they dont care how much money is in your account they just take what you owe them.
2007-08-31 13:35:27 · answer #9 · answered by Anonymous · 0⤊ 0⤋
i would think you was paying with your account and maybe you signed a paper and didnt know it but i bet you said it was ok to take a payment out also bet you not going to get it back since you own the bank anyways
2007-08-30 14:52:06 · answer #10 · answered by infoman89032 6 · 0⤊ 0⤋