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a letter in which the Bank advised that they had a right to access credit funds to pay her mortgage and that they have withdrawn X amount from Acme Charity's account to pay her mortgage.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a letter in which the Bank advised that they had a right to access credit funds to pay her mortgage and that they have withdrawn X amount from Acme Charity's account to pay her mortgage.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