the right to offset?

[sam9002]

Good Afternoon,


Looking at options to go into a Debt Management Plan.

My Building Society has my C/card and Mortgage Account.

I am hoping with a Debt Management Plan the C/card charges and interest can be reduced, although it may not be possible.

Does every Building Society have the right to offset?, take money for Mortgage payment and pay it into my C/card arrears?

I am happy with my dealings with the Building society over the years and would like to stay with them for my Mortgage and c/card.

I have some money due to me from helping out a friend, this may not come in for 12 months. I have informed them of this.

In the mean time, it would be great if it was possible to stop the right to offset, or is this impossible?

Is their any room for negotiation, or to stall charges until the money due comes in?

Thank you very much

[sam9002]

Re: the right to offset?

Thank you, offset question answered -

[labman]

Re: the right to offset?

What was the answer? :beagle:

[PlanB]

Re: the right to offset?

Looking at options to go into a Debt Management Plan. My Building Society has my C/card and Mortgage Account.I am hoping with a Debt Management Plan the C/card charges and interest can be reduced, although it may not be possible.

Does every Building Society have the right to offset?, take money for Mortgage payment and pay it into my C/card arrears?.

Good grief no. There is no way your building society can take money destined for your mortgage account for any other purpose. How do you pay your mortgage? Is it by direct debit which will name the specific account that the money will be paid into including a reference number?

Before you consider a DMP can you tell us what debts you currently have. It may not be worth it, or indeed it may not be possible, if you've only got one credit card. There are other ways to get a creditor to freeze interest and charges.

Give us a little more information so we can help you

[PlanB]

Re: the right to offset?

What was the answer? :beagle:

see my post above ^^^^

[labman]

Re: the right to offset?

Have a read of this, it's very informative about the right of set off. :beagle:


http://www.financial-ombudsman.org.u.../40_setoff.htm

[PlanB]

Re: the right to offset?

Have a read of this, it's very informative about the right of set off.


http://www.financial-ombudsman.org.u.../40_setoff.htm

Which only reconfirms my point. A lender can only use the Right To Set Off option from an account which is in credit. A mortgage account is by definition an account which is in deficit.

QED.

[PlanB]

Re: the right to offset?

Have a read of this, it's very informative about the right of set off. :beagle:


http://www.financial-ombudsman.org.u.../40_setoff.htm

The information you posted was from the FOS in 2004 (nine years old). Perhaps the more recent updated FOS information from 2010 which encompasses the changes in the banking world would assist the OP better:

http://www.financial-ombudsman.org.u...ing-setoff.htm

[labman]

Re: the right to offset?

LOL! Just checking you're awake. It's good reading though.

What if you have a current account with the same building society (or one in the same group) which is in credit to the tune of your mortgage payment. Can they not then use the right of set off to take the money towards your credit card arrears, leaving you short on the mortgage payment?

Is the first right of appropriation still around? :beagle: