Halifax Is This A Bad Sign

http://www.halifax.co.uk/HelpCentre/blc.asp?tag=HOME5

see this about their change to their licence from tomorrow (planned aged ago)

I replied to your other post about it:

http://forums.moneysavingexpert.com/showthread.html?t=553571

Yes its nothing to worry about and was announced along time ago , as I said in my other posts

But it does change the Financial Services Compensation Scheme from before:

"The Financial Services Compensation Scheme was established under the Financial Services and Markets Act 2000 to provide protection to customers if companies experience financial difficulties. It covers different types of investments in different ways. Where a customer has made deposits in a savings or bank account, payments under the scheme are limited to 100% of the first £2,000 and 90% of the next £33,000 of the customer’s total deposits, subject to a maximum payment to any one depositor of £31,700.

Both Halifax plc and Bank of Scotland are members of the scheme. Up to 17 September 2007, as they have separate banking licences, a customer who has savings or bank accounts with each will have separate protection under the scheme for each set of deposits. After the change on 17 September 2007, Bank of Scotland will continue as a member of the scheme. This means that if your total deposits with Bank of Scotland, including accounts in any of its divisions (for example Halifax), exceed £35,000, your protection under the scheme will be limited to the maximum payment."



and the right of off-set between companies:

"The only other possible impact is if you have both borrowings and deposits with us and go into arrears. At present, in common with other banks, if payments are overdue on an account (such as a loan or credit card) and you have money in another account (such as a bank or savings account) with the same company, the account conditions may allow us to take the money you owe us out of your other account. After the appointed day (17 September 2007), if the account conditions or general law allow it we may take money from any account you have with Bank of Scotland plc, including any of its divisions." -

before hand Halifax would not take from BOS or Intelligent Finance for example, but now they can.

Sainsburys operate under a different licence as HBOS only have a 50% share.

From today Halifax, Bank of Scotland, BM and IF operate under same licence so your understanding is right, apart from Sainsburys bit

I haven't forgotten but I have never had an instance where they have, but from today they can - that is what we have been informed of

Because they were called plc, before it was different

The legal footnote yesterday had different numbers for them too

"Are there any other possible impacts on me?
The only other possible impact is if you have both borrowings and deposits with us and go into arrears. At present, in common with other banks, if payments are overdue on an account (such as a loan or credit card) and you have money in another account (such as a bank or savings account) with the same company, the account conditions may allow us to take the money you owe us out of your other account. After the appointed day (17 September 2007), if the account conditions or general law allow it we may take money from any account you have with Bank of Scotland plc, including any of its divisions."