bank took money from one account and put it into another- is it legal? (advice needed

lee316

Hi all, been a long time since I needed advice from yourselves, and everyone has been very helpful, so hopefully you can help me again
This time I am asking on the behalf of a friend of mine. He has an account with NatWest, which he is overdrawn at. He oppened another account, perhaps foolishly, with the same bank.
Now the NatWest has taken money out of the second account and put it in the first to cover the ovedraft (which has mounted up due to the charges). They haven't informed my friend of their actions, either by letter or otherwise. Now the friend has been left peniless, and doesn't get paid until the last day of the month.

Can the bank do that without informing him of their intention first?
Is it legal at all?
What can be done about it?

Thanks on yur help.
Regards,
Lee

izools

Totally legal.

He broke the terms of one account so they used the right to offset, which he agreed to by signing their T&C, to use available funds in other accounts held at RBS Group to repay the unauthorised debt.

What can be done about it? He can pay back his debt.

Sam_G_3

izools wrote: »

Totally legal.

He broke the terms of one account so they used the right to offset, which he agreed to by signing their T&C, to use available funds in other accounts held at RBS Group to repay the unauthorised debt.

What can be done about it? He can pay back his debt.

As above.

Surely this would have been better than your friend having to pay an unauthorised overdraft charge? The bank were just trying to help your friend on this occasion.

lee316

Thank you Izools, I suspected as much. I have pointed it out to him that it probably is somewhere in their t&c's. Obviously now the problem is that he cannot repay the whole ammount. Told him to set up the meeting with the manager and see if he can come to some sort of arrangement re fees.

lee316

Thanks Sam, yes I see the reason behind it, just worrying about the friend being skint, which will one way or another put him back in the same situation.