interim 3rd party debt order served on my ltd company bank account yesterday

[paulie100]

Hi,

an interim 3rd party debt order was served on my ltd company bank account yesterday for the amount of 1900.

 

I checked my account in the morning as I had 2 DD's for 800 and 190 going out which had been paid, this left my balance at 1300.

 

When i checked in the afternoon, this amount of 1900 was showing in my account therefore tipping it 600 overdrawn!!..

 

i do not have an overdraft facility so this has left me seriously compromised with payments of 1200 that are due out on Monday.

The bank would not normally let me go overdrawn so i do not understand how they could hold this payment.

 

I have the final debt order hearing on Monday at the court,

is there any way of me resolving this as it has put me in serious bother now....

 

the DD's i have coming out on Monday are on a loan secured by a PG on a new director that came in long after this case was originally brought and the commercial loan company will not take it nicely.

 

Anything that I can do?

 

Thank you.

[paulie100]

To add, I just spoke with the bank and they told me they received the order on the 5th December, there was not enough money in my account at that time, and now they have taken it on the 4th January...is that permitted? Thank you.

[sgtbush]

So you have a ccj which you have failed to pay or the agreed payment terms.

Its already been to court. The creditor must apply for a third party debt order and a judge has awarded it.

The bank must comply with the courts orders and have done.

 

But I think you know more than your saying on here as their is a vast paper trail and warning letters sent. Including a 7 day warning of the bank freezing your accounts up to the amount on the order

[paulie100]

Yes, but isn't it correct that the bank must act on the order on the day they receive it, they cannot take the money afterwards?...

[sgtbush]

I dont think the money has been paid, its frozen..

 

If your creditor wants to get a third party debt order, they will first apply for a temporary order called an interim third party debt order. This order tells your bank or building society to freeze your account. At this point, your account will be frozen but no money will be paid to your creditor until the judge has decided what to do at the final hearing. The final hearing should take place at least 28 days after the interim order is made.

 

paulie100 said:

Yes, but isn't it correct that the bank must act on the order on the day they receive it, they cannot take the money afterwards?...

 

 

You may be right. You'll need to argue this point on your hearing.

 

 

If the third party debt order is made final and the money is being taken from your bank account, the bank has to pay your creditor either:

•the amount in your bank account at the date of the interim order or

•enough to pay the balance owing on the county court judgment or other court order.

 

The third party debt order can only affect money actually in your bank account at the date when your bank received a copy of the interim order. It doesn’t freeze money paid in at a later date.

[paulie100]

Thank you. Yes, so on the day the bank received the order there was under 100 in my account. They froze the account yesterday, I just wanted to clarify if this was legal or if the bank had no right to do this?

[sgtbush]

From reading I think the bank are not in compliance with the order, it should of been on the day of the order.

 

 

Do you have your copy of the N84?

[paulie100]

Yes i have that.

[sgtbush]

And what date is on the N84

[paulie100]

The order was made on the 5th December and the bank confirmed to me that they received it that day.

[sgtbush]

Then it freezes your account for the judgment plus costs and up to £55 for the banks admin fee.

Your sent a copy of the N84 7 days later.

Your then given a further 21 days to apply for a hardship payment or prepare your defence to it going final.

 

So you need to get bank statements showing your balance on the 5th Dec.

Statements showing they froze the account on Jan 4th ( I think you said).

 

You need to Say the order was not carried out on Dec 5th and it must be only on that date. The bank has acted not in accordance with the order by doing it on Jan 4th.

This has also not given you the required 28 days notice ( 21 in reality)

[paulie100]

OK, i have all the statements. So, do you mean they have only given me 27 (20) days notice...is that important?

[paulie100]

No, sorry, they have given me 28 days notice from the 5th Dec haven't they, do you mean from 4th Jan?

[sgtbush]

The 21 days is the time they freeze the acount to your hearing. Ot gives you time to prepare or apply for hardship.

 

The bank should of frozen account Dec 5th AND ONLY DEC 5TH.

There is no order for Jan 4th so its a two pronged attack.

Shouldn't of frozen account on Jan 5th as no authority too and even if they did, you have not had the required Time to prepare

[paulie100]

OK, thank you for your help sgtbush, will let you know the outcome.

[sgtbush]

The creditor may apply for another order but that does not stop you from opening other accounts with another bank and using that one

[paulie100]

Thank you, I will pay it, but it has just hit me in one lump and cocked up my bank.