High street banks have been criticised for switching customers’ money between accounts without notifying them first.
The practice – known as ‘setting off’ – commonly involves the bank taking money from a
current account to pay off another overdrawn account belonging to the same person.
Consolidation among a number of banks means more consumers have accounts which
fall under a single owner, leading to an increase in reported cases.
According to the Citizens Advice Bureau, there has been an 80 per cent increase in enquiries about such transfers in the last four years, which are still legal providing the bank informs the customer afterwards.
Sue Edwards from the CAB told the BBC that the practice is leaving some people in “dire poverty,” and called on banks to leave a minimum of £,1000 in customers’ accounts to cover the basic cost of living.
"It wouldn't help everybody," she said, "but it would help more people than at present."
Eric Leenders from the British Bankers' Association said banks are aware of the issue and will strive to be to be more considerate when taking such decisions.
