Help First Direct closing current account for credit card debt

[breakanegg]

Hi peeps,

 

Hoping someone could please provide some help and guidance.

 

I am unfortunately unemployed after being paid off this year. I'm receiving job seekers allowance.

 

I am unable to pay credit cards and struggling to make sure at least my mortgage and gas/electricity is paid. I wrote to all credit card companies using the template letter asking for freeze of interest and charges and setting up of a payment plan until I get a job.

 

I have a First Direct Current account, all my direct debts for the aforementioned come off that, my job seekers allowance is paid into it and I have a debit card. I have an overdraft which I am not using but obviously I need an account for my JSA and for my direct debits. If it was to be suddenly cancelled (which is what FD have threated), I'd be stuffed.

 

I received the following from First direct

 

'Whilst I appreciate your circumstances we are unable to agree reduced repayments to the above account due to the deficit income identified in your Personal Budget sheet.

 

At present there are arrears on the card. If do not bring the visa up to date a default notice will be issued and we will withdraw all of your banking facilities. This would mean the cancellation of all first direct cards, standing orders and direct debits as well as the removal of any overdraft. This would apply to all accounts held in your name."

 

They then go on to say they comply with the Lending Code which is a complete joke. I've read the lending code and Section 9 is really explicit in terms of financial difficulties, subscribe to it my butt, they've completely ignored it.

 

Can they do this? I'm really upset that they've refused to agree a payment plan but to threaten to close my current account, cancel direct debits, cancel my card etc seem cruel and in total violation of the code.

 

Any advice be much appreciated.

 

thanks

[blueda]

Im not sure if what the creditor is threatining to do is legal when you are unemployed, however it would be better to open an account with a bank that is not of the same banking group as first direct and move all your business there.

[jansus]

or take control of what income you have and open an account with a credit union. then complain to the FOS.

 

You may have signed an All monies clause without realising it which means they may be within their rights.

[dx100uk]

what about the notice of appropriation rule?

wont stop them closing things but it will stop them stripping your money by offset banking

 

dx

[vusys1]

they did the same to me,told me they are closing my account etc,get a new one asap and change your dd`s etc,try ltsb it can be done over the phone in minutes.

[breakanegg]

or take control of what income you have and open an account with a credit union. then complain to the FOS.

 

You may have signed an All monies clause without realising it which means they may be within their rights.

 

Thanks guys, yeah I've applied for another account. Problem is I'm not sure I'm going to be able to open another bank account because I'm unemployed at the moment which means I've been unable to pay credit cards which means my credit rating is extremely poor

 

My worry is that I'm going to be stuck with First Direct because can't open another account, they'll cancel DDs and my card and I won't be able to pay my bills and my mortgage is the most worrying.

 

Applied with Alliance & Lester. I just don't understand why banks need to run credit checks when you're not asking for any credit? i.e. I've said no to an overdraft.

[jansus]

credit unions dont run credit checks - but you have to check what is in your local area.

[cerberusalert]

Both NatWest and the Cooperative offer basic a/cs without chequebooks or overdraft facilities but includee direct debits, electron/visa cards. With the Cooperative you can use any Post Office to withdraw money etc.

 

If push comes to shove the DWP will open a Post Office a/c for you.

[maroondevo52]

Yep, I just opened an Basic account with Natwest and my Credit ratings garbage, but I had no problems

[breakanegg]

Yep, I just opened an Basic account with Natwest and my Credit ratings garbage, but I had no problems

 

Okay so I've applied for a Natwest basic account, said will send paperwork in the post, fingers crossed they don't turn me down

[maroondevo52]

Don't think you'll have any prob's, they'll send you a Visa Debit card, remember when they send you the 'pin' number, don't scratch it too hard or like me you won't be able to make it out

[breakanegg]

Don't think you'll have any prob's, they'll send you a Visa Debit card, remember when they send you the 'pin' number, don't scratch it too hard or like me you won't be able to make it out

 

Lol, I did exact same with most recent card, over enthusiastic scratching!