Bank personal loan - what can bank do?

[CoeRoe]

I have paid approx 18 payments to a 48 month/payment unsecured, personal bank loan.

I have lost my job and am now claiming benefits for the time being. I've made arrangements with my other creditors to pay �20 a month to each of them.

My question is, can my bank (which I owe the loan to, and have my only accounts with), interfere with any money that goes into my account? For instance if I take a relatively low-salaried job, and then have money going into my current account, can they just take their share from it, regardless of whether that leaves me enough to pay my rent, eat, and keep up my other arrangements?

Any advice much appreciated, please do let me know if any clarification is required.

[sandmaster]

The first option to them is to let the next loan repayment go through which will be debited to your current account. If this creates an overdraft any monies paid into the current account may be used to either reduce or repay the overdraft. In addition you will incur charges on the overdraft.
Best to come to an amicable agreement with them whilst you are in difficulties.

[CheekyChops]

Yes they can, is the answer to your question.

You could open a basic bank account with someone who you do not owe money to and get your benefits/salary paid into to that account instead. Then transfer money each month or whatever to cover the loan and treat them the same as your other creditors.

[CoeRoe]

Thanks, folks. I have to call the bank after my next payment defaults so will try to come to an arrangement then.

If that fails then I will need to see if I can set up another bank account.

[themas]

In your situation it is always much safer to have a bank account (it only needs to be a basic one) with a bank that you do not owe any money to.

Even if you can get an arrangement with your present bank, there is nothing to stop them changing their minds at some point. If they did take the money you need to live on you would be in terrible difficulty. Not worth taking the risk. Open another account now.