Veiled threat

IT'S ruined weddings, cancelled Christmases and left countless people in misery.

'Setting off' is a banking practice that infects and blights our lives.

In plain terms it means that banks can swipe big money from our accounts without permission. And it's starting to happen everywhere.

Two months ago on this page I wrote an open letter to the Prime Minister urging him to crack down on it . . . but we've not heard a PEEP.

Yet some of the worst offenders are banks he's BOUGHT part of, in OUR NAME. So, let's ignore him, and do something about it ourselves.

'Setting off' is a hidden danger for anyone with loan or credit card debts where they bank or save. It allows banks simply to take cash from your account to repay your debts WITHOUT TELLING YOU (see www.moneysavingexpert.com/settingoff for the full legal rules).

The biggest horror occurs when cash you've safely stowed away for priority repayments like your mortgage gets swiped 24 hours before the due day WITHOUT your knowledge.

And the bank doesn't care that this could leave you in default facing hefty penalties.

My emailbag is swamped with nightmare stories about setting off. Let's look at a few and then I'll show you how to fight it.

I've changed some names to protect those in financial difficulty.

THERE'S no tale more gut-wrenching than that of poor Derek Vine whose wedding gift to his daughter was thieved by her bank.

The proud father had saved £12,000 with his credit union to give her a cheque to pay for her big day. Two days after paying it into her account she found that £6,000 had been swiped to pay off her credit card debt.

"Our daughter is inconsolable-to ruin her wedding day is despicable," says Derek. "We told the bank that credit union officers would even sign a statement saying the money was ours and that we'd asked for the cheque to be put in our daughter's name-but still they refused to refund it."

When I challenged the bank involved, it admitted using 'setting off' and claimed it "always tries to deal sympathetically with any customer facing financial difficulties". I'll let you be the judge of that!

BUSINESSMAN Bobby James saw £47,000 whipped out of his joint account with his wife, and transferred to a company account at his well-known high street bank.

"We only found out when one transfer made our joint account overdrawn by £11,000-and we had no overdraft facility," says Bobby. "Money was taken from us- especially from my wife."

ONE of the country's most popular banks siphoned £400 from Leila Brown's account in December, "wiping out what little funds I had put aside for my family Christmas".

The following month, the bank withdrew her £800 overdraft without warning- and only reinstated it after Leila argued for an hour.

So what does she feel about the bank-which we taxpayers now own most of?

"I hate it with a passion and feel loyalty counts for nothing. I'm trapped with a bank I detest."

MOLLY Jones was made redundant in January and signed on to claim fortnightly jobseeker's allowance for her monthly mortgage and bills.

She paid this into her current account where she had an authorised £2,900 overdraft.

"My bank took my allowance and deducted that from the overdraft, without my permission," Molly fumes.

"It's despicable. I had no money to live off for those two weeks."

EVERYONE struggling with money should take these steps:

KEEP savings and bank accounts with SEPARATE firms. Open a new bank or savings account to move money away from debts.

IF you're struggling, put your vital money in easier-to-get 'BASIC bank accounts' without overdrafts (see www.moneysavingexpert.com/bankaccounts ) or try Credit Unions.

STAY in touch with your bank CONSTANTLY. If you're flailing around with missed loan/credit card payments, your bank must be informed what you're doing.

IF you're a 'setting off' victim and the bank won't pay you back, COMPLAIN to the free independent Financial Ombudsman Service which can force it to pay compensation.

Let's keep the pressure up. If you've been a victim, use www.writetothem.com to contact your MP (include a copy of this article) and tell me at NOTW@moneysavingexpert.com .

SEND questions for publication to notw@moneysavingexpert.com

TV money guru Martin Lewis is the creator of the Consumer Revenge website www.MoneySavingExpert.com which is packed with info on how to get more money in your pocket.

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