DOES BANK HAS RIGHT TO TRANSFER AMOUNT FROM SALARY ACCOUNT TO CREDIT CARD ACCOUNT WITH OUT ANY INFORMATION ?

Hi, i was using HSBC credit card of 15000/- limit 2 1/2 yrs back, where i used 6000/- %26amp; repayed 3000/-.then i was shifted to other state %26amp; now back to same area after 2yrs. I have not received any statment nor phone calls.





Now the problen is my new joined company opened salary account in same bank HSBC %26amp; my salary was deposited to my account. the next movement i recived an SMS to my cell mentioning that amount of 25554.00/- recived for credit card payment !!!!. my whole salary amount been taken by the bank with out my knowledge or any information. I checked with the bank via email %26amp; received email saying that bank has right to take amount with out any notice.





Pls suggest me what steps i should take to get back my salary.|||Something WORSE happened to my grandmother. She became an invalid and was unable to do her own grocery shopping, so she went to the bank and instead of having them add my aunt on as convenient signer, they added her as a joint account holder. When my aunt went off writing a bunch of bad checks, the bank just came and withdrew my GRANDMOTHER'S funds to repay the overdrawn account! I think my aunt is a total winch for this because she NEVER paid the debt she owed.|||They sure can but only if you are behind in your payments. You can sign up for automatic withdrawal for payments to prevent delinquencies. HSBC will do all they can to ensure they get any money due them (as they should).





I would recommend that you keep your credit card account in a separate bank from your salary bank account (different institutions) to protect your assets.





You probably can't do anything to get your money back unless you can prove their actions were illegal. Once they have your money the law says "possession is 9/10 of ownership".|||Web search "right of offset". Many people got bitten by that when their bank merged with a bank where they had a delinquent debt.





In the USA they are not supposed to do that for credit card debt. But if you skipped town and they got a default judgement in your absence, that gives them more forceful options to collect the debt.|||yup. You no doubt signed a contract with them that allows the creditcard company to withdraw funds from your bank account to cover your debt when you signed up for the creditcard.





That's the way it works. Next time think twice before overspending.





There's no way to get your salary back, you foolishly spent it all before you even got it.|||Yes sir, "right to set off" is legally permitted. If both debit %26amp; credit balance remains in the same name, debit balance may be adjusted with the credit balance by the institute with or without any information.|||you can cancell any withdrawl from a bank account, simply request the payment back and call the credit card company and tell them you plan to pay in payments as most regular people do!|||Most bank account terms and conditions have a clause for "right of offset" or some similar language that allows them to move funds from an account to satisfy a negative balance in another.|||Cancel your direct deposit ASAP...|||Why does being shifted to another state relieve you of paying your debt and what does not having a statement, when I presume you did not file a change of address with them thinking you could beat the debt, have to do with the price of beans.





They had every right, under their banking agreement, to take the funds you owed them. Good thing is now it is paid/partially paid and you only owe then a little more or nothing.





However one thing strikes me, did you have to sign up for this salary account in any way with your employer? Or were you just told here it is?|||All companies engaged in lending, (banks, credit cards companies, finance companies etc) usually include in their pro-forma contracts/documents/agreements a provision that states that they can debit/charge/collect/deduct from your other accounts with a credit balance with them any and all amounts due them.


This is what HSBC did. Since you had a deposit account with a credit balance with them, they deducted from this deposit account the amount collectible from you.


To avoid this from happening, ask your company if you can open a payroll account with another bank. Otherwise, this will always happen.


You can try withdrawing everything from your salary account immediately after it has been credited by your company. However, this is a long shot because the bank would definitely have a program in the system that will immediately debit your payroll account any amount due from you once the account has a credit balance.


There is no way you can get your money back from HSBC.|||That right must have been included in the fine print of either the credit card account or the bank account. If it wasn't, then the bank does not have the right to do that.





All banks have an implied right to use one bank account to pay off debts in another banks account held by the same individual but not to seize funds from a bank account to pay off a credit card debt without an explicit agreement.





Well, you heard the expression that possession is nine tenths of the law. That means you will have to sue the bank just like the bank would need to sue you to recover money you believe is owed (if an explicit agreement was not signed).|||You should read the contract you signed in order to obtain the credit card in the first place. Then you may want to consult a lawyer and find out if there is anything that can be done on your behave. Chances are if you didn't make any payment for 2.5 years their isn't much you can do unless you can provide proof you notified them of your change in address when you were transferred out of state.


A lawyer may also be able to negotiate a refund of some of your money and start a payment plan with the company in question.