Can Your Bank Take Your Money Without Permission?
Is your bank entitled to clean out your current account’s credit balance – with neither notice to you nor your permission – to settle a separate debt you owe it? Banks have always argued that they are allowed to do exactly that in terms of our common law principle of “set-off” – and that having that ability helps us all in the end by giving them more security when lending us money. As we discuss in more detail below, the National Credit Regulator has however approached the High Court for a determination on whether or not the National Credit Act…