# Bank taking money from a non-related account



## Thirsty (13 Dec 2011)

I heard of a situation last night which astounded me and since I'm being asked for advice & have never come across this one before thought I'd post here for opinions.

Mary has an agreed moratorium on her mortgage.  

She also volunteers for Acme Charity.  Mary is a co-signatory on Acme Charity's bank account.  As is standard practice for such accounts two signatures are required for all withdrawals.  

As it happens, Acme Charity's current account is with the same Bank as her mortgage holder. 

Mary has just received a letter in which the Bank advised that they had a right to access credit funds to pay her mortgage and that they have withdrawn X amount from Acme Charity's account to pay her mortgage.  

I'm still gobsmacked at even writing that last paragraph.

The money in the Charity account isn't hers of course and the account isn't in her name.

Can the bank legitimately do this?  And what does Mary say to the Charity?


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## Rudolph (13 Dec 2011)

No, absolutely not. They are two distinct, seperate entities. She should tell the bank to immediately reverse the transaction, make good any charges incurred/loss of interest on the charity account (if applicable) and look for an apology. If the bank do not co-operate she should report them to the Ombudsman. Out of interest which bank is it?


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## Thirsty (13 Dec 2011)

Don't know if I can name the bank.

Wondering if anyone has heard of something like this happening before.


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## Alwyn (13 Dec 2011)

That is shocking.  I have never heard of anything like that happening before.  Though, a 
friend had some personal financial difficulties in 2007 and the bank helped themselves to the what was left in their business account.  They were cleaned out and subsequently had to sell their home.  Your friend needs to nip this in the bud before it gets out of hand.


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## Wishes (13 Dec 2011)

Was there arrears on the mortgage?  

As far as I know the bank can take funds from an account which the debtor has access too.  I don't agree with it but I have heard of it before.


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## Rudolph (13 Dec 2011)

They can probably offset against any other accounts the debtor has with them, but this account is held by a seperate legal entity, they have no right of set off against any funds in this account.


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## Quest (14 Dec 2011)

Hi Thirsty,

Have you seen this letter?  Is there any chance that Mary Mis-read the letter?  

I would not have thought that this would have been in any way possible!


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## Mpsox (14 Dec 2011)

A bank can have the legal right to take money from one account to cover off the debt in another, but only if the funds in the accounts belong to the debtor.

There are a number of possibilities here
-This is an urban myth with no basis in fact or
-This is a genuine mistake by the bank or
-The bank believed the charity account was owned soley by the debtor and was being used by the debtor solely to hide funds


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## Thirsty (14 Dec 2011)

Mpsox, this is not an 'urban myth' I don't indulge in such things.

I've seen the letter, the accounts were referenced by number, Mary did not misread it.  I don't believe this is a 'genuine mistake'  the bank clearly & deliberately debited money from the charity a/c.

The Charity a/c is in the name of ACME Charity and Mary is *one* of the signatories.

In any event if you have a moratorium on your mortgage I understood that was an agreement that your mortgage payments were suspended?


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## Mpsox (14 Dec 2011)

Thirsty said:


> Mpsox, this is not an 'urban myth' I don't indulge in such things.
> 
> I've seen the letter, the accounts were referenced by number, Mary did not misread it. I don't believe this is a 'genuine mistake' the bank clearly & deliberately debited money from the charity a/c.
> 
> ...


 
Apologies, wasn't clear from your first mail.

Mary needs to first formally raise a complaint with the bank in writing, the charity needs to do likewise. If this does need to go further, then the Ombudsman will normally only get involved once the banks internal complaints process is exhausted.


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## Mrs Vimes (14 Dec 2011)

I have signed several signatory mandates for charities and it beggars belief that the bank could have thought that the money was in any way Mary's personal funds, but a letter pointing this out to them is clearly in order.

The bank will have to return the money and do so without informing the charity as to why it took it in the first place. I would also point out to the bank that they have no right whatsoever to  discuss any aspect of her financial affairs with unrelated parties (ie  the charity or the other signatories). Since the bank has effectively stolen the money from the charity I would threaten to get the Gardai involved.

I would also CC all correspondence to the head office of the bank concerned.

I'm absolutely horrified  Are branches really this stupid?


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## Thirsty (14 Dec 2011)

It would seem so Mrs Vimes.

I've advised Mary to get her letters off PDQ, personally I think she should be looking for an apology & compensation also.


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