Tokyo Facts File #4 - Tokyo Money and Tokyo Banks - 0 views

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  #1 Chas Pearce on 31 Jul 12

   

  Merrill Lynch -- 4 billion
  
  It would be rare that a traditional bank warns customers before that exercises its right of 'set off'; after all a warning might prompt customers to move their money to an account with a different traditional bank or into someone else's name! However it is usually good practice for a bank to tell a customer asap after it has made a transfer, though not surprisingly this is too late to discuss the position with your budget and come to a few alternative arrangement.
  
  Similarly, it would be unusual for any bank/building society to employ 'set off' before giving the shopper a reasonable opportunity to pay for the debt - precisely what is 'reasonable' though probably will depend on the customer along with the manner of conduct of the account in the past. Constant problems are apt to reduce considerably the timescale defined as 'reasonable'! \
  
  These general position can end up modified by agreement relating to the bank/building society and it's customer. This might involve:
  
  * an deal that 'set off' be available to a firm's mortgage arm, where it is a separate legal entity;
  
  * an arrangement to regularly transfer some cash over a certain balance of a current account and into a savings account (typically afterwards of each day);
  
  * an arrangement that money held by the customer in one capacity can be used to pay debts owed with the same customer in an alternative capacity.
  
  Such arrangements should be specifically agreed, and it is important that any document made by the lender where for example, a mortgage has been agreed, is fully known before signing it, as there could be a clause included which enables the loan originator to exercise set off using some circumstances.
  
  There's a chance you're forgiven for interpreting the above as a demonstration involving 'good customer service' and a good example of 'treating customers fairly'. Nevertheless, the reality is that banks etc is going to be looking to minimise their risk of losing money, but will exercise their 'right' of set off fairly aggressively where they see funds in the same name on other accounts.
  
  Finally, keep in mind that 'right' is not tied to setting off current balances. For example, a bank is perfectly allowed to retain any funds payed off into an overdrawn bank account (from, for example salary) in order to reduce the indebtedness, providing the overdraft facility has expired or the account has been defaulted by the traditional bank. This could mean that the individual has no money to hide living expenses until the next pay day. Similarly, such funds paid into a current account can be used to partially or fully reimburse a defaulted loan bank account, while using the same result for the customer.
  
  Religious Seanor, one of Country wide Money Helpline's specialist advisory group, explains that "clients often fail to realise that they risk the lending company taking their funds to clear outstanding debts in default once they continue to pay within their bank account. We have seen several instances where clients experienced financial difficulties where they've already not made alternative arrangements in respect of their salaries. Really it is important that, in such situations, individuals protect themselves by setting up a separate bank account where they've already no debts, which they maintain in credit, whilst investing in place arrangements to crystal clear the outstanding debt(s) within their means. "
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  List of investment banks

   

  <div class="cArrow"> </div><div class="cContentInner">Merrill Lynch -- 4 billion<br /><br />It would be rare that a traditional bank warns customers before that exercises its right of 'set off'; after all a warning might prompt customers to move their money to an account with a different traditional bank or into someone else's name! However it is usually good practice for a bank to tell a customer asap after it has made a transfer, though not surprisingly this is too late to discuss the position with your budget and come to a few alternative arrangement.<br /><br />Similarly, it would be unusual for any bank/building society to employ 'set off' before giving the shopper a reasonable opportunity to pay for the debt - precisely what is 'reasonable' though probably will depend on the customer along with the manner of conduct of the account in the past. Constant problems are apt to reduce considerably the timescale defined as 'reasonable'! \<br /><br />These general position can end up modified by agreement relating to the bank/building society and it's customer. This might involve:<br /><br /> * an deal that 'set off' be available to a firm's mortgage arm, where it is a separate legal entity;<br /><br /> * an arrangement to regularly transfer some cash over a certain balance of a current account and into a savings account (typically afterwards of each day);<br /><br /> * an arrangement that money held by the customer in one capacity can be used to pay debts owed with the same customer in an alternative capacity.<br /><br />Such arrangements should be specifically agreed, and it is important that any document made by the lender where for example, a mortgage has been agreed, is fully known before signing it, as there could be a clause included which enables the loan originator to exercise set off using some circumstances.<br /><br />There's a chance you're forgiven for interpreting the above as a demonstration involving 'good customer service' and a good example of 'treating customers fairly'. Nevertheless, the reality is that banks etc is going to be looking to minimise their risk of losing money, but will exercise their 'right' of set off fairly aggressively where they see funds in the same name on other accounts.<br /><br />Finally, keep in mind that 'right' is not tied to setting off current balances. For example, a bank is perfectly allowed to retain any funds payed off into an overdrawn bank account (from, for example salary) in order to reduce the indebtedness, providing the overdraft facility has expired or the account has been defaulted by the traditional bank. This could mean that the individual has no money to hide living expenses until the next pay day. Similarly, such funds paid into a current account can be used to partially or fully reimburse a defaulted loan bank account, while using the same result for the customer.<br /><br />Religious Seanor, one of Country wide Money Helpline's specialist advisory group, explains that "clients often fail to realise that they risk the lending company taking their funds to clear outstanding debts in default once they continue to pay within their bank account. We have seen several instances where clients experienced financial difficulties where they've already not made alternative arrangements in respect of their salaries. Really it is important that, in such situations, individuals protect themselves by setting up a separate bank account where they've already no debts, which they maintain in credit, whilst investing in place arrangements to crystal clear the outstanding debt(s) within their means. "<br />.<br /><br /><a rel="nofollow" href="http://listofinvestmentbanks.net/">List of investment banks</a></div>

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