http://www.financial-ombudsman.org.uk/publications/ombudsman-news/40/40_setoff.htm
yrush,
Very interesting. Thanks for sharing that with us. So the bank can take money from 1 account to pay off a delinquent account without the owner’s permission!
Good to know.
Furnishedowner
I note that this is a UK publication and the cases cited involved residents of the UK. Does the US have a similar banking rule?
I’ve read some bank documents that include such language, but I haven’t seen it done.
Yes Dave, US banks are doing this. I had a post last week about this and after researching my friends issue where BoA took 10K, and then the letter in mail came 1 week letter with the terms Off-Setting, I then found this article plus talking to several lawyers and CPAs on the topic and trusted bankers.
This is going to become more popular many believe. Despite the fact you may pay your bills ontime, many do not. I think it is important to educate everyone on this subject. Especially if your renting/financing someone with bad credit. it be a great asset to them if they know about this. Who wants to get a call on the 1st of the month from a tenant that says can not pay rent because the bank took my money without asking.