Can Bank Freeze One Account if You Owe Them In Another?

I don't see what is wrong with what the bank is doing. They don't want to unilaterally transfer money so they do it this way. If somebody owed you money and wouldn't pay you would you let them take some other collection of their funds they left for safekeeping with you?

I'm really interested in what is allowed, rather than what is right and wrong. :) I recall someone I knew who owed a lot of rent on their house and ran away, but the landlord was not allowed to sell the goods they left, or keep them, or use them to get the owed rent back.

Yes it is lawful , if its in the banks terms and conditions

the other alternative is they close the account

Why doesnt your feind transfer the money accross himself save on charges

Correct. Most banks do include this in their T&Cs these days. It even extends to their credit card operations. It's a very good reason not to hold more than one account with a single bank.

As a side note, get your friend to contact the DWP and explain what is happening. It may be that he would be better off with a Post Office Card to access his benefits.

The DWP do advise people to contact them if they have trouble getting all of their benefit and if it turns out to be an ongoing problem. The banks and the DWP did agree a few years back that banks would, amongst other things, not do precisely what this bank is doing. By all means he can try and negotiate repayment of his debt in installments but they shouldn't be preventing him access to his benefit in order to get back their money.

Are you sure about that? Is it not the case that if a tenant leaves stuff behind after the lease has expired (which includes premature termination initiated by the landlord, even where no eviction was necessary since the tenant has vacated of his own accord), any stuff left behind may be deemed to have been abandoned? The landlord can not be required to store it free of charge, and so should be allowed to do anything he likes with it, like throw it away, burn/sell/use it.

Our laws may be different, but this sort of situation comes up on Judge Judy from time to time, and she always approves of landlords trashing ex-tenants' junk, no matter how valuable, provided the stuff is left behind for longer than rent has been paid for.

Barclays:

You authorise us to debit any account with us in any currency to reduce or repay any amounts you may owe us on any account (including on card accounts you hold with us, and any other amounts you may owe us), either in your own name or jointly with anyone else. We will tell you if we do this.

It's allowed.

Straightforward solution. You tell the DWP you want a giro from now on. And regardless of what they tell you, you have the absolute right to require payment by giro.

Thats ok if the ops freind is local to a post office to cash it

If he/she doesnt pay the bank what they owe its likely that the bank will start collection proceedures which will cost the ops freind far more , screw up thier credit rating generally making the persons life far more difficult .

The op said that her freind had mental healt issues , the last thing anyone in that position needs is masses of hassle from debt collectors et al

Depends if the account holder has agreed lien.

Banks should keep to a code of conduct. If you are not happy then you must approach the ombudsman. Currently all banks are short of money because of their own errors. It is to be feared that they will take it out on their customers. Isn't this what Gordon Brown refers to in his speeches(eg yesterday at Davros Economic Summit where he was on a panel which was televised)?

I would appeal to bankers to return to customer centric policies. Things were very different before PM Thatcher.