Right of Set-Off Scenario


In the event that someone files a consumer proposal, I understand that you recommend changing your banks account(s) to an institution with which you don’t owe money. However, in today’s day and age often institutions are owned by other larger institutions. For example, Capital One owns ING Direct, and TD owns MBNA. If someone has bank accounts at ING, and owes Capital One $ on a credit card as part of the proposal, does the right of set off still apply? I.E can Capital One take the money from your ING chequing account? Thanks,

Posted from: Ontario

One Response to “Right of Set-Off Scenario”

A licensed trustee said...

All of these financial institutions that own “subs” operate independent of each other. They have no right of set-off between their different operating companies.

Frankly, to be safe, I’d consider moving my accounts anyway – why risk it?