Would any of the banks do this to try and recover damage costs?

spotify95

Let's say for example a guy goes to his local branch of Halifax to complain because his card keeps on getting declined everywhere he tries to make a purchase. When he is told it's because he is in an unauthorised overdraft and nothing can be done to rectify this, it's his responsibility to manage his spending better, he loses his temper and smashes up everything in the branch as well as the windows, then gets hold of a foam fire extinguisher and sprays it's contents everywhere around the now damaged bank.

As well as obviously shutting down all and any of his accountson he holds with them and bringing legal proceedings against him, would they use all and any money he had in any of his accounts with them (let's say if he had a few thousand in his web saver account despite his main current account being overdrawn without permission), to help cover the costs of repairs, downtime etc?

If they won't, do you think they should as a matter of policy?

Ben8282

A more likely scenario is that they would suggest transferring some of the money in the other account to his current account to rectify the situation rather than saying there was nothing they could do.
If a person was to behave in the manner suggested it is likely that the police would be informed and he would be charged with criminal damage.
I'm not sure if they could legally take the money to pay for the damages or not. Possibly not. But they could always sue him for the cost of the damage.

jonesMUFCforever

spotify95 wrote: »

Let's say for example a guy goes to his local branch of Halifax to complain because his card keeps on getting declined everywhere he tries to make a purchase. When he is told it's because he is in an unauthorised overdraft and nothing can be done to rectify this, it's his responsibility to manage his spending better, he loses his temper and smashes up everything in the branch as well as the windows, then gets hold of a foam fire extinguisher and sprays it's contents everywhere around the now damaged bank.

As well as obviously shutting down all and any of his accountson he holds with them and bringing legal proceedings against him, would they use all and any money he had in any of his accounts with them (let's say if he had a few thousand in his web saver account despite his main current account being overdrawn without permission), to help cover the costs of repairs, downtime etc?

If they won't, do you think they should as a matter of policy?

Did you do this?
You are right that the accounts would be closed - I think whether they took any monies to recover costs for damages would depend on any court case - Halifax may ask the court for damages.
IMO this would be unlikely - a cheque for all balances would be made out to the account holder when accounts were closed so no monies would be held back.

Shakin_Steve

Ben & Jones......I can't believe you actually answered that load of codswallop.

welshbookworm

When is the book out on Kindle?

spotify95

jonesMUFCforever wrote: »

Did you do this?
You are right that the accounts would be closed - I think whether they took any monies to recover costs for damages would depend on any court case - Halifax may ask the court for damages.
IMO this would be unlikely - a cheque for all balances would be made out to the account holder when accounts were closed so no monies would be held back.

:rotfl: No way! It was just a hypothetical scenario I was asking about and I gave Halifax as an example because I have a bank account with them, however any issues no matter how big or small, I'd look to resolve in an orderly fashion that doesn't involve damage to anyone's property.

eskbanker

Haven't the schools gone back yet?

Badger50

The OP is preposterous but it does raise the issue of Banker's Lien and the extent of it. The bank would certainly be able to recover the overdraught from any other in-credit accounts. It would also normally be able to recover any other legally enforceable debt from the client's assets held by them. A possible claim for compensation would not be legally enforceable without some judicial process. The question for me is whether the bank would be justified in freezing the accounts pending legal action so that the money would be there for them when they obtained a judgement awarding damages.

Badger50

A well known example of a lien is when you take a car to the garage to be repaired. The garage has a lien on the car meaning that the garage can keep the car in its possession if you refuse to pay for the repair. They can then get a judgement against you for the debt and if you still won't pay up the car may be sold. If, as I would imagine it does, Banker's Lien works in the same way they would be able to hold on to the customer's assets pending the outcome of legal proceedings. But what do I know? I am only a bloke on the internet.

jonesMUFCforever

Banks don't call it a lien they call it a right of set off.
This is when the overdrawn account and the account in credit are in the same names for the same beneficial owner.

EachPenny

Badger50 wrote: »

If, as I would imagine it does, Banker's Lien works in the same way they would be able to hold on to the customer's assets pending the outcome of legal proceedings. But what do I know? I am only a bloke on the internet.

I think it might be one of those things where it comes down to account terms and conditions. If there were wording to the effect the bank could refuse a withdrawal request in the event the bank suffers some form of consequential loss arising from the banking relationship then maybe they could hold on to the money, but as you suggest, I don't think they could claim it as theirs (as compensation) without first going through a judicial process.

Perhaps Halifax will now be drafting something ready for their next T&C's update Although with Lloyds and BoS reducing interest rates it might be them who need to be concerned about hordes of savers descending on them and setting the fire extinguishers off.