For instance, a major bank automated Fraudulent Account Closure, Loan Application Opening and Right Of Set Off
processes that saved over 120 FTE and reduced bad debt provision by 175m per annum.
There are three circumstances when money can be taken out of your account -- when you authorise a payment, via a court order, or when you owe the bank money and they invoke their 'right of set off
Alternatively, where the accounts must be held with one of the financiers, the operator may require that the financiers' right of set off
cannot be exercised against the operating accounts.
"On January 29, 2009, as Mr Smith had not met the terms of his credit agreement, HSBC used its right of set off
to repay these arrears and the outstanding balance on the card."
If the supplier's debt to the customer does not arise until after the bankruptcy filing, the right of set off
under Section 543 does not help the supplier, because it applies only to mutual debts where both arose prior to bankruptcy.
FEE is calling for clarification by the Commission on:u the application of the principle of substance over form;u the presentation of construction contracts in the balance sheet;u employee benefits: future salary increases related to promotion;u whether decommissioning costs can be included as part of production costs;u the preparation of consolidated accounts in reverse acquisitions;u the intention to use the right of set off
in netting.As accounting becomes more international, International Accounting Standards are likely to play a more important role in Europe, says FEE.