Can banks take my savings to pay arrears on a lease.

[Oldhopalong]

Hi,

I'll try and keep this simple!!

I have just sold my share of the family home after a seperation. I am renting at the moment and I want to use the proceeds to buy an apartment. I have a lease arrangement with my bank towards a business venture and I am behind on payments by about 6 months. If I lodge the proceeds of the house sale into a savings account can the bank use part of this money to pay the arrears on the lease without my permission. My intention is to rent the apartment and use this income to go towards paying the arrears and to continue paying the lease.

Thanks in advance for the advise.

Pat

 

[Gordon Gekko]

A bank typically retains a right of offset in respect of different accounts held with it.

So if you're talking about accounts with the same institution, yes is the answer.

The solution is not to place your cash with the same bank.

 

[Oldhopalong]

A bank typically retains a right of offset in respect of different accounts held with it.

So if you're talking about accounts with the same institution, yes is the answer.

The solution is not to place your cash with the same bank.[/QUOTE


Thanks Gordon,

Unfortunately it is with the same institution. My credit rating is shot at the moment because of the business arrears so I'm not even sure other banks will let me open an account.

P

 

[Gordon Gekko]

You should try and open an account somewhere else so...maybe a credit union if your credit rating is an issue for another bank?

Failing that, could you get a family member who you trust to hold the cash for you?

 

[Oldhopalong]

Thanks Gordon, I've stuck an application into credit union and family are an option too.

Fingers crossed. I'm not running from my debts but just trying to get back to a point of financial security so i can sort it all out!!

Not sure why I had to explain that... but it felt good!!