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.
The National Credit Regulator however approached the High Court for a determination on whether or not the National Credit Act has changed all that. We discuss the issues at stake and the Court’s ruling.
