Banks "setting-off" rule

s-o-tman

As posted today (2/6/10), a good reminder about this sneaky practise!
More people should be made aware of this. I note the case in question was about HSBC, now this was Midland, and they deprived me of a cool £10k some years ago, using this "trick", which indirectly led to all sorts of financial problems for me, ending up with divorce! Obviously, still playing their ace card when it suits them on unsuspecting account holders! In my case, I put an inheritance into a seperate account, but unfortunately with the same bank - not thinking that this could happen - and Midland then "set-off" this money to clear a business start-up loan I had with them which was serviced by my current account. So BEWARE! - if you have a lump sum or other money you want to protect, DO as advised and put it into a completely different bank or even something like premium bonds which cant be snatched away without warning!

molerat

I am sure they would have given you plenty of warning that you owed them £10K

ehlo

As the inheritance is surely extra income, surely you should've used it to clear your debt anyway? I don't see anything wrong with the banks doing this unless you need the money for necessities

exel1966

s-o-tman wrote: »

As posted today (2/6/10), a good reminder about this sneaky practise!
More people should be made aware of this. I note the case in question was about HSBC, now this was Midland, and they deprived me of a cool £10k some years ago, using this "trick", which indirectly led to all sorts of financial problems for me, ending up with divorce! Obviously, still playing their ace card when it suits them on unsuspecting account holders! In my case, I put an inheritance into a seperate account, but unfortunately with the same bank - not thinking that this could happen - and Midland then "set-off" this money to clear a business start-up loan I had with them which was serviced by my current account. So BEWARE! - if you have a lump sum or other money you want to protect, DO as advised and put it into a completely different bank or even something like premium bonds which cant be snatched away without warning!

Off-Setting doesn't just happen to all and sundry on a whim as you're trying to make out. It happens to those who consistently refuse to manage their finances properly and it's never taken without warning ! It's clearly displayed in the T&C's if you care to read them so nothing sneaky, a trick, unsuspecting or being snatched about it really.

I'd suggest your lack of business and financial acumen caused your financial difficulties rather than the bank.