Right of off set

[muminneed]

Can someone please answer a question or two on a banks right of offset.

I had a personal account with my OH at HSBC. I had a loan in my own name which I couldn't pay also with HSBC. HSBC were taking the monthly amounts from the personal account for the loan even though the account was overdrawn and they were not allowing any other DD's or SO's to come out for any other payments to anyone else. I moved my personal banking to Lloyds. HSBC though kept the personal account with them open and continued to take the money for the loan from it until it was 14k overdrawn. They then told me I couldnt pay the loan from my Lloyds account directly to the loan account it had to go via another account they had opened for me, oddly a business account, and if I didnt sign up for it, they would foreclose on the loan. This account was then used by HSBC in the same way. They would take money from it for the loan sending it into overdraft and then send me a letter saying they had agreed my overdraft of 5k when they had taken enough payments to put the account that overdrawn. They sent all info on the account to my ex husband who then tried to use my apparent lack of funds to take my children during my divorce.

Can off set be used in this way? I thought off set was just about taking money from an in credit account to balance an out of credit account?

Mum x

[leclerc]

Re: Right of off set

was the account in your name only?

Was your address updated with the bank?

[muminneed]

Re: Right of off set

The loan account was in my name only, and yes, they had my address，The second account I never had a statement on, still don't and despite two SARS and asking at my local branch i sill have no statements or any for the loan account and no letters of warning. They also until now, some 5 years after this started have not worked out I can't afford this loan, conducted any kind of affordability test, they just compound if I can't pay and off we go again. It is secured on my house.

[leclerc]

Re: Right of off set

Ok, was the second account in your personal name or in joint names?

[muminneed]

Re: Right of off set

It started in my name and then my OH came onto it.

[muminneed]

Re: Right of off set

He was added to it when it was still in credit x

[muminneed]

Re: Right of off set

The second account is just in my name and bizarrely is a business account they told me I had to open or they would foreclose on the
loan and they'd take my house.