banks' rights to offset - do they apply to pre-paid cards?

pippitypip_2 · 15 February 2011 at 5:20PM

Hi all,

I just hoped some mighty expert might pop along and advise for the following scenario.

I have debts with RBS (Mint) that I am paying back but on a plan.

If I use the Cash Builder prepaid card - it states that all funds held on the card are actually held in trust with RBS.

Could RBS use those funds to offset against my debt? Bearing in mind they're held in trust and not directly with them?

Any advice much appreciated.

many thanks!
pippitypip

jambosans · 15 February 2011 at 5:31PM

My initial reaction would be no, but we'd have to have a look at the T&C's to be sure, can you post the providers website details?

pippitypip_2 · 15 February 2011 at 5:33PM

Oh that sounds like the first piece of potentially good news I've had in ages!

Thanks jambosans.

http://www.mycashplus.co.uk/

Ts & Cs on open account page: https://secure.membersaccounts.com/OnlineApp/Page1.aspx?__utma=1.50968822.1297778554.1297778554.1297785679.2&__utmb=1.29.10.1297785679&__utmc=1&__utmx=-&__utmz=1.1297778554.1.1.utmcsr=moneysavingexpert.com%7Cutmccn=(referral)%7Cutmcmd=referral%7Cutmcct=/cards/prepaid-cards&__utmv=-&__utmk=242695298&pc=WWW505&tn=CPControlDQA it also says there about the funds being held in trust with RBS.

Thanks!
pippitypip

jambosans · 15 February 2011 at 8:11PM

There's no mention in the T&C's of the right to set-off against RBS accounts. The below also clarifies you're contract is not with RBS:-

T&C's wrote:

10. WHO IS RUNNING MY CARD ACCOUNT?
10.1 Your Card is issued by AFL who is authorised and regulated as an e-money issuer in the UK by the Financial Services Authority (https://www.fsa.gov.uk/register/ reference 463355). Your Account will be operated by APS on AFL’s behalf. APS and AFL’s Company Numbers are 04947027 & 06029941. Their registered offices are situated at 6th Floor, One London Wall, London, EC2Y 5EB.

They mention the right to set-off, but not in relation to RBS Group accounts:-

T&C's wrote:

12.4 We have the right to;
[...]
v. offset any debt incurred on any foreign currency Card Account to a linked Cashplus Card Account.

I think you're safe.

pippitypip_2 · 16 February 2011 at 9:41AM

Many thanks jambosans.

pippitypip

banks' rights to offset - do they apply to pre-paid cards?

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