Mark Anthony Silverthorn

Law offices, professional corporation

Helping people deal with collection agencies

Why should you use more than one financial institution?

You may do your banking at a bank, trust company, or credit union. More than half of Canadians do all their banking at a single financial institution. However, having all your financial transactions done at just one bank, trust company, or credit union could prove to be very costly because of the financial institution’s right of set off.

When you deal with a financial institution you may be a debtor or a creditor or both.

You are a creditor if you have a bank account, own a term deposit, or own a bank-sponsored mutual fund.

You are a debtor if you have a personal loan, line of credit, mortgage, overdraft protection, or bank-sponsored credit card.

If you owe money to your bank it may exercise a right of set off and seize money from your chequing or savings accounts at the same bank. Your financial institution may be entitled do this without notice. However, it is not entitled to set off debts from monies held at a different financial institution.

www.Collection-Calls.ca