Funds transferred without permission - is this allowed?

[Poker Queen]

Hi there,

 

Hoping one of you knowledgeable people can help me out.

 

My husband and I have between us a total of 5 bank accounts with NatWest: a current account and a savings account each and a joint current account.

 

Currently only my sole account and the joint account are actually used.

 

I put in a claim for charges on both mine and my husband's sole current account, but unfortunately not until just before the test case was started by the OFT so these are on hold and we have received nothing back yet.

 

My husband's sole account was overdrawn towards the end of last year - however as this was totally as a result of charges applied and he doesn't use this as his main account I didn't worry too much about it.

 

I then received a letter from the bank saying that they proposed to clear the overdraft on his account (around £250) by transferring funds from the joint account. However this letter did not arrive until after they had actually made the transfer. Are they actually allowed to do this without express permission from either myself or my husband?

 

Would be really grateful for your help on this one.

 

Thanks very much in advance for any help anyone can offer on this.

 

PQ

[Michael Browne]

Yes unfortunately they can, it called set-off and will be buried in the small print of your T&C's

[Poker Queen]

Not the answer I was hoping for , but thanks very much for your quick response.

[Michael Browne]

This is from HSBC's T&C's, Natwest will have similar:

 

7. Miscellaneous

 

7.1 If any accounts you hold with us are in credit, we may use any of them to reduce or repay any amounts you owe on other accounts you hold with us anywhere in the same name (including any card accounts and any joint accounts) whether or not those accounts are in the same currency.

 

If we decide to do so:

 

• we will tell you why and when it has been done; and

• in doing so, we may (and you irrevocably authorise us to):

 

- bring to an end any fixed deposit period applying to any of the accounts you

hold with us and adjust any interest payable by the Bank;

- convert to sterling at the prevailing market rate of exchange any balance

that is in a currency other than sterling; and in doing so we will have no liability to you.

 

Nothing in this clause will prevent us from exercising at any time any other

right of set-off or of combination of accounts to reduce or repay any amounts

you owe us.

[JonCris]

Just to confirm Micheal is correct I'm afraid

[steven4064]

Just to confirm Micheal is correct I'm afraid

Michael usually is