Bounce-Back Loan terms and conditions

[Deleted User]

My BBL agreement states "TSB would also have the right to repay any debt outstanding from any other accounts you may hold with us"  as one of the terms. 

Does this mean if I sign it, then the money goes automatically to paying out on my overdraft? If so this would prevent me from buying the essential replacement car for my business and thus having to take out a higher priced loan. 

It also says the consumer credit agreement does not apply so i cant complain about it being unfair. 
Can anyone clarify what this quote means please?

CC

[Deleted User]

No. It means that if you default, they have the right of off-set and to use other funds to clear the debt.

Batesy1976

Right of set-off.

You can't set a debt off with another debt so they can't set off the overdraft debt with the BBL funds.  It's essentially just to ensure that, if you decide to not pay for whatever reason, they can empty your (in credit) bank accounts with them to pay off some or all of the outstanding debt.

Edit:  If the BBL is being paid into the account with the overdraft they could, in theory, pay it in and remove the overdraft facility.  There's not much you can do about that I'm afraid.