I work for a large real estate group and on Friday I was to pay the staff their commissions only to find that ABSA withdrew the funds to pay off an overdraft we had. They never phoned us or nothing just took the money. When we confronted them they said there was nothing they could do. We had an arrangement in place for the overdraft since November and if ABSA was unhappy with the arrangement they should have contacted us and renegotiated but they did not. Now what are we to do for the salaries as ABSA did not let us know what they were doing so we had no time to try and get further funds, Clause 4.4 of the Banking code of conduct which ABSA is in Breach of:
4.4. Set-Off
4.4.1. We will not rely on set-off unless we are by law allowed to do so. We will inform you within a reasonable period of time if we have effected set-off in respect of any of your accounts. You will receive timely statements (if statements are generally produced on the relevant account), which will reflect the set-off position.
4.4.2. Prior to setting off your debit and credit balances, we may also elect to place any of your funds on hold pending a discussion with you on any amount owed to us.
0 comments