Published on September 29th, 2014 | by FinanceLoophole0
First Right Of Appropriation Template Letter
First Right of Appropriation – what’s that about then?
If you owe your bank money – you’re regularly overdrawn and don’t clear it for instance – the bank can, without your permission, take your money to pay back the overdraft when you’re wages are paid in. That’s the last thing you want if you’re short of money in the first place but you can stop it happening.
If you have debts with one bank we always advise you to open a new basic account with an unconnected bank so you can pay your wages and money into this new debt free account. Obviously the first bank can’t take your money in charges if you don’t pay it in there in the first place. Of course this only works if you can set up a second basic bank account elsewhere.
If you have not already set up a separate bank account and you’re worried that money paid into your bank (eg.your wages) will be taken in bank charges when they are paid in, then you can exercise what is called ‘First Right of Appropriation’ to help stop this from happening. You can view and download our First Right of Appropriation Template Letter below.
More About First Right Of Appropriation Bank Debt
Banks may make a charge if your account is overdrawn. This may be the case if you have outstanding loan with a payday loan company as they can withdraw money from your account automatically under a continuous payment agreement (CPA) which may take your account into overdraft. If your account is overdrawn and then you get paid, your bank could try to use this money to pay off your overdraft without your permission. However, you’ve got the right to ask them not to do this and to pay other expenses first, such as your rent or mortgage. This is called first right of appropriation. You have to ask your bank to do this in writing. Make sure you write the words ‘first right of appropriation’ in your letter. Use our free letter template below.
Remember that you will need to write to the bank with new instructions each time you make a deposit.
Using your right of appropriation will quite often be a signal to the bank that you are struggling financially, which can lead to removal of facilities and downgrading of accounts to basic.
They should not do this without discussion and notification first. They are, in essence, quite right and needing to appropriate your income in this way can be a sign of impending difficulties.
When contacting your payday loans lender
- Know your rights – having a look around this site can help
- Make sure you are reasonable with them
- Make sure you keep a cool head
This can often be very difficult as you will be feeling under pressure and stressed. But If you don’t do this when you contact them then it is much more likely that your payday loan company will ignore your problems or try to bully you into repayment.
If your debt is over a certain level, another invaluable source of payday loan help and help with bailiffs may be open to you. If you are really struggling with payday loan debt, a debt management company can transform your situation. A good debt management company will charge no upfront fee, and will contact the company your payday loan debt is owed by on your behalf. With experience of dealing with these companies and expert knowledge of regulations and rights, they can halt all threats and unnecessary contact, and help create a much more manageable situation in which you will finally be able to successfully pay back your loan. If you’re looking for one, many of our website visitors have used Bright Debt Solutions with success.