I have been advised by the Central Bank that the legislation governing the Central Bank does not permit nor does it prevent a financial institution regulated by it (regulated entity), from transferring money out of an account held by one of its customers and offsetting it against an amount owing by the same customer to the bank in a separate loan account with the same institution, without the express permission of the customer. This practice referred to as "off-setting" can be provided for in lending contracts and would be more a matter for contract law. I have also been advised by the Central Bank that provision 8.6 (i) of their Consumer Protection Code requires lenders to advise consumers in arrears of any impact of the non-payment on other accounts held by the personal consumer with that regulated entity including the potential for off-setting of accounts, where there is a possibility that this may occur under existing terms and conditions.