set off deductions

For years SA's banks have unilaterally - and without warning - been taking money from their clients' current accounts to settle their credit card debt, often leaving too little money to honour debit orders or buy food for the month.

But no more - thanks to a ruling by the Johannesburg High Court outlawing the common law practice known as "set-off".

This follows an application for a declaratory order brought by the National Credit Regulator against Standard Bank seeking legal clarity on whether set-off had been superseded by the National Credit Act's Section 124.

The court ruled that that section excludes the operation of the common law set-off in all credit agreements that are regulated by the NCA.

"The NCR welcomes this judgment as it protects consumers from financial difficulties caused by the arbitrary transfer of funds from their accounts by banks", says the NCR's CEO, Nomsa Motshegare.

"Banks should obtain permission from consumers before transferring funds from their accounts to pay amounts due under credit agreements."

Yet a set off amount just went off my account without my knowledge or permission This is clearly *******, i cant make my monthly commitments

I called and explained this and was told that nothing can be done