Can they do this?

[Skippy]

I'm asking this for a friend of mine. Her neighbour is on benefits and has a basic bank account. Her parents transferred £200 into her account so she could have a new gearbox put in her car. When she went to the bank her money was gone, and when she rang the bank she was told it was taken for an unpaid credit card debt from 7 years ago.

My question is, can the bank do this? I understand that she owed money, but can they really take every penny out of her account and leave her with nothing? She has 2 young children.

Thanks in advance for your advice.

Yesterday is history, tomorrow is a mystery, today is the present - a gift to make the most of.

View my blog at http://skippy13.blogs.iva.co.uk/

[MelanieGiles]

Skippy

The bank is entitled to do this, but only if they have actively pursued the debt within the last six years. If not, the debt is written off due to the Statute of Limitations.

Surely the account has been used on an ongoing basis for the last few years, so what has prompted the bank to do this now?

Regards, Melanie Giles, Insolvency Practitioner for over 20 years.

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http://www.melaniegiles.com/ivaEnquiry.asp

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[Skippy]

Thanks for that Melanie. She probably has been chased by the bank but I don't know. My friend is going to suggest that she thinks about BR as she has no assets but quite a lot of debt.

Yesterday is history, tomorrow is a mystery, today is the present - a gift to make the most of.

View my blog at http://skippy13.blogs.iva.co.uk/