What to do if…
your bank says it will take money from your account to cover a debt

What to do now

1. Confirm the basics in one call or secure message.

   • Ask how much they plan to take, from which account, exactly when, and which debt they say it is for.
   • Ask whether the debt is with the same bank or banking group.
   • Ask whether the account with money in it and the debt account are held in the same capacity, for example sole account, joint account, or business account.
   • If anything does not match, ask them to explain in writing what authority they are relying on.

2. Use the words “financial difficulty”, “essential living costs”, and “priority bills”.

   • Say: “I’m in financial difficulty. I need this money for essential living costs and priority bills.”
   • Tell them the specific payments at risk, such as rent, mortgage, council tax, energy, food, childcare, travel to work, or prescriptions.
   • Ask them to pause, delay, reduce, or cancel the set-off so those essentials can be paid first.

3. Ask what fairness checks they have done.

   • Ask them to confirm whether the debt is in arrears or otherwise due now.
   • Ask what notice or information they gave you about set-off before using it.
   • Ask whether they considered whether taking the money would leave you unable to pay priority debts.
   • If the first person cannot help, ask for the financial difficulty, collections support, or vulnerability team.

4. If the money is needed for specific essential bills, try to earmark it before it is taken.

   • If you live in England or Wales and wages, benefits, or another payment are due into the account, you can ask the bank to use that incoming money for named essential bills first. This is often called the first right of appropriation.
   • Send the request before the money arrives if possible.
   • List the incoming payment, the date it is due, the bills to be paid, and the amounts.
   • Send it by secure message, email, or another trackable route the bank accepts, and keep a copy.

5. Protect your next income if the risk continues.

   • If you can, open a basic bank account with a different bank or banking group.
   • Ask your employer, benefits office, pension provider, or other payer how quickly they can change where your next payment goes.
   • Do not close the old account while payments, overdrafts, or charges still need checking.

6. Prevent knock-on damage today.

   • List the payments that could fail in the next 7 days.
   • Contact priority providers before payment dates and ask for a short hold, new payment date, or temporary arrangement.
   • Move or cancel non-essential payments only if doing so will not create a bigger problem.
   • Keep enough records to show the bank what the money was needed for.

7. Start the complaint route if the bank will not leave enough for essentials.

   • Save the notice, screenshots, messages, and call notes.
   • Make a complaint to the bank and ask for a complaint reference number.
   • Ask the bank when its response deadline is for this type of complaint.
   • If you receive a final response you disagree with, or the relevant response deadline has passed, check whether the Financial Ombudsman Service can look at it.