bank takes funds

[doo]

My son in law has a business and personal account with the bank of Scotland, he is self employed. 400 pounds was paid into his business account today and the bank has taken the whole amount due to arrears on a loan even though it is not linked to the business account. This has left him with no money, he has a 10 month old son and no money to buy electric for heating which is run using electric radiators or money for food, milk etc, can anyone advise.

[BankFodder]

I'm afraid that he won't be able to do anything before Christmas.

 

The bank has excercised its right of setoff

However it may not have exercised the right correctly.

 

If it hasn't then we can help you with this.

 

There some questions to ask.

 

 

• By how much was he behind with his loan?
  
• Has the bank exercised a set-off before?
  
• Did they make any attempt to discuss the matter with him?
  

 

The bank has a right of set off which means that they can use funds in one account to pay off another which is behind in some way.

 

However, if it is the first time that they have used setoff with you, they should inform you in advance

 

They should also

 

• estimate how much money needs to be left to meet your priority debts and essential living expenses like mortgage, rent and food bills;
  
• not use set-off on money it knows or should know is intended for certain purposes, such as where the NHS provided it for healthcare or a third party is entitled to the money.
  
• try to contact you to discuss your options before set-off is used, and to explain when and how set-off can be used
  

I suppose that being BOS, they see you as fair game and they have broken most of these rules - maybe all of them.

In which case we can help you. You may well be able to get he money back and some compensation.

 

If you are ready to play the Fair game

[doo]

In answer to your questions:

The loan I believe is behind by 4-5 months

Set-off has not been applied before

No attempt was made by the bank to discuss or inform

[BankFodder]

4-5 months doesn't tell me by how much the loan is behind. What was the figure before the set-off and after.

 

I think that we can make a very powerful case on your behalf - but of course the complaint would have to be conducted by your claim and he would have to be interested enough and committed enough to take it up and to follow it through.

 

Would you like to have a word with your son and see if he is interested?