I need urgent advice on an overdraft issue.

C

connamara1

Guest
I opened 2 accounts 7 months ago with the same bank one business and a personal account.

Shortly after opening the account I applied for an overdraft on the business account, but I never received any reply. So Ii was in the bank one day and asked the lady in the bank
if she could tell me if I had any overdraft an explained that I did not receive any reply she checked and said yes you do have an overdraft in place and that was it.

3 months later which is now.... I wrote a cheque for the overdraft amount to my other bank( not the same bank) as I needed to cover bills in that account I basically used the overdraft amount and put it in my other bank the cheque has cleared which is fine but now they have told me that I do not have any overdraft on that account but they have paid it....and I was told I had the overdraft...

the question is...can they now take money from my other account the personal account that I have with them because the money I have in that account is to cover my mortgage any some other bills could they take this money from my account without my consent.

Could you please let me know if they can take money out from my personal account....
I would appreciate your answers... this has caused me great stress


Thanks in advance
 
really.... even though this is a different account...
 
I'm not sure that they can do this without your consent unless it's a condition of the accounts that if you go into unauthorised overdraft on one account they can use another account to get the money back.
 
I had this conversation with my account manager in the BOI a couple of years ago. He said the bank could not go into one account to feed another without proper authorisation.

Just reading this it also struck me that if the bank did this from a business account to a personal account without receipts (say you were paying a business expense from your personal account) it will be seen as income and therefore taxable which would be a whole other issue for you to deal with.
 
From my banking exams done 50 years ago i recall something like that banks have an implied right of set off for accounts in the same persons name even though such accounts may be designated with different titles.
 
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