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Help - Account frozen due to Off setting

My account was frozen because the bank want to withdraw the money to offset it against a credit card debt. Went to another bank to open an account and the woman there told me that she didn't think banks could do that since I am on benefit. Does anyone know if that is the case or where I could find information about this?

Also, is it still possible to endorse a cheque by signing the back and giving it to someone in exchange for cash?

Stupid question but I am desperate and don't want to go to those high street rip off merchants!

Thanks!
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