Taking cash from one account to pay another

rupertthedog

I have a mortgage with one of the big banks. I also have a credit card account with them which is in arrears, and which I'm paying off at an agreed monthly amount.

If I sell my house and settle the mortgage, can the bank then take money from the proceeds of the sale to pay off my credit card debt?

kingstreet

Your solicitor will pay the bank whatever is required to release the charge on the property. This will not include any credit card debt, unless the bank gets a CCJ and a charging order against the property before you can complete the sale.

BadgerFace_2

If there is surplus money from the sale, which you leave in a current account held with the same bank, then yes they can.

But that has nothing to do with the sale of your house, they could do that with any money you hold in a current account held with them.

Leon_W

As above. Yes they can, but if you are worried about them doing this then just get any proceeds paid into an account with a different bank.

kingstreet

Yes. I should have clarified. Don't pay the money into an account with that bank if you don't want them to be able to swipe it.

Hanky_Panky

kingstreet wrote: »

Your solicitor will pay the bank whatever is required to release the charge on the property. This will not include any credit card debt, unless the bank gets a CCJ and a charging order against the property before you can complete the sale.

Not strictly so !!

From my experience most charges are listed as an 'all monies charge' so in theory they could require settlement of the credit card particulalrly if they have already sent out a default.

However - the chances of the lender ever matching the two accounts up and then realising they could clear both accounts are very, very low.