can a bank do this?

willowman15

well im off to my first meeting with the CAB on 06/08/09 to discuss my financial situation.
ive spoken to all my creditors and gave them a copy of my own income and expenditure as taken from this site, worked out a pro rata payments for now and some have excepted. i thought that my bank argreed as they had changed my direct debit but yesterday they demanded the remander of the full months payment or they would freeze my account and debit card so they used into the overdraft which they said had money in but that was for my morgage/ council tax at the end of the month. can they do this??. had to borrow money from parents to pay the morgage till next week when my wife gets paid...

so pi****ed off.
have been with this bank for 20+years and get treated like this

Ames

Unfortunately they can do it. I'm surprised that CAB didn't tell you to open a new basic account straight away to keep your money safe from creditors. It's called right of recovery, if you owe money to a bank they can take it from any accounts you have with them.

MrsTinks

Yes they can - it's called offsetting. This is why you need to start a new basic account asap with a bank you do not currently have any debts with. Did CAB not advise you to do this?