Do you have money worries and a loan or credit card with your bank?

One of the worst case here is a couple who did not close a joint account before hubbie stated an IVA. The bank are using the off-set rule to draw the full payments for his sole loan from the jopint bank account (effectively taking it outside the IVA) for which she is now fully liable.

I used to have a Lloyds TSB credit card, and I bank with them too. When, a couple of years ago, they published some new Terms & Conditions, I actually read them for once. When I saw in the small print their 'setting-off' ability, I immediately cancelled that card. Not that I currently have any current debt problems, thankfully, but that I should potentially be penalised for loyally banking and having credit cards with the same bank was abhorrent to me. Like the rest of you guys, I reserve the right to control where my money goes, and what priorities I will allocate my debt payments to.

There are two points I'd like to make here.

Firstly, I feel that everyone who has been hit by their bank in this way should name and shame them here.

Secondly, the practice of setting-off is actually eroding the reasons why banks do 'free' banking in the first place. They're hoping that customers who have banked satisfactorily with them for years would turn to them first when they want a loan. Now, however, this practice of setting-off [why isn't it called 'stealing'?] will stop these people from borrowing from them.

I think that this is one of the most important principles ever to come from Martin's Money Saving site. Never, ever, borrow from the bank that your current account is with.

Now you have me a little worried. I've just changed to Lloyds TSB "Duo" for my credit card, I have been offered what I consider to be quite a high credit limit (over £4k), I have no balance transfer and when this month's payment has been made on my previous card, I will ask for it to be cancelled. (The reason for change is a little odd - my bank sent me a new debit card which was visually exactly identical to my credit card and my eyesight is poor, I didn't want to accidentally use my c/c to withdraw cash at an ATM.)

My question is: I have a joint account with my husband at Lloyds TSB, where we also have loans, which are being paid regularly and our current account is in credit. Would Lloyds TSB be able to "offset backwards" if we were to hit difficulties with our joint current account or loans and take what could hypothetically be an unlimited amount of credit from my credit card to offset against any default or overdraft? (My c/c has a direct debit from an account at a different bank in my name to pay the full amount each month.)

I'd be grateful for comments, for safety I may have to change my c/c again!

Hi

We entered a dmp with cccs just over a year ago - all running well. We have debts with several banks and so opted for an account with Lloyds TSB to have wages etc paid in.

We do have debts with Halifax though and with their merger I have been trying to find out whether Lloyds could offset our debts against what we owe Halifax.

I had been told that because they have seperate licences from FSA and are keeping their own identities this isn't a possibility, but I must admit that I am worried that one day we will find our LloydsTSB account cleared out.

Can anyone clarify this - as I phoned FSA the other day and they confirmed that they have seperate licenses but wonder, in view of Martins comments, does this also apply to debts or only savings?? Help.

Does this include overdrafts or is just loans, mortgages and credit cards? I've got a student account but also about 3 grand in savings. My student account is about 800 overdrawn at the moment. Thanks for your help!