Using an old legal principle called ‘set-off’, your bank may deduct money from your account to pay another account that is in arrears The legal principle is that if A owes B R100 and B owes A R50, then A can deduct the R50 owed to him by B and pay only R50 to B in settlement of the debt. A has thus set-off R50 from the debt he owes to B. Although outside the OBS jurisdiction, we have urged the banks to apply the principle as fairly as possible. We have recommended that the banks do not attach a customer’s entire salary as this can cause a snowball effect, which leads to other existing loans not being paid and, therefore, falling into arrears. Read more at obssa.co.za/images/documents/cin_005_setoff.pdf
Posted on: Thu, 02 Oct 2014 06:42:22 +0000
Trending Topics
Recently Viewed Topics
© 2015