"Under T & C's we can still take our money"

macready12

Made the (now know to be) mistake of having account and credit card with the same bank. When I cancelled the Direct Debits a couple months of ago in preparation for going BR (online forms almost complete) the bank still took its full credit card monthly payment. I assumed this was a one off as I figured they weren't allowed to continue taking a cancelled DD. But my account statement now has the abbreviation PAY instead of DD next to this particular monthly outgoing. A bit late admittedly, I looked at my credit card statement and it says ..."The terms and Conditions allow us to transfer any available funds from your account to offset any outstanding arrears on this account". Unfortunately I don't have/can't find the T&C,s. Any experiences or light anyone can shed on this appreciated as always (other than have wages paid into a different account which I've now set up). Not so much a complaint or a gripe, more an irritation on the journey. Or "For the journey" if you believe the bank!

Alfie_E

This is a general legal right. It doesn’t even have to be mentioned in your terms and conditions. It’s called the right of ‘set off’. The article banking: firms' right of 'set off' on the Financial Ombudsman Service’s website explains it in more detail.

macready12

Much appreciated Alfie.

betterlatethannever

I'm sure i've read somewhere that you can write and ask the bank NOT to 'off set' any money to them, wether they'll obliged is another thing

Broken_hearted

Move banks if you can and go BR as soon as you can to stop them getting more.