DMP -right to offset? MBNA/A&L

chumpycheet

Hi All,

Long term lurker here, about to do the DMP thing and take back control as my wife and I are in over our heads and are living a miserable hand-to-mouth existence despite a combined income of just under £70k. I'll give you the full details and SOA later, but the crux of our problems started when we got married, as we both owned our own houses and committed the criminal act of trying to sell one of them.

Two years on, with the other house reduced by £37k, negative equity and still no buyer, plus a period of paying two large mortgages on one income while my wife was on statutory maternity pay, and it's all come to a head. I work long hours, commute 160 miles a day and have absolutely nothing left from a £42k salary, my wife works in a job she hates to make up the difference, and we're still being sucked under, so DMP it is.

Anyway, sob story over (it feels better just to vent occasionally) my one burning question is this. I have a current account with Alliance and Leicester into which my salary gets paid. I like the account and have no desire to change it, especially as all of the household bills, council tax etc are paid through it as well. Simplicity, I suppose.

I know when starting on a DMP (I'm planning to go through Payplan) you're advised to open a new 'clean' account, but as I have no overdraft with A&L and never have had, I'd like to keep the account open.

The only problem is, I have an A&L credit card with a balance of just under £11k which I want to incorporate into my DMP. The card is A&L branded, but was issued by MBNA and so far as I can see, other than branding, has no connection to Alliance and Leicester's day-to-day banking services. Am I therefore safe to leave my bank account with A&L, or will MBNA be able to use anything in my A&L current account or my £500 'emergency savings' to offset the card balance? I'm pretty sure they can't, but I need to know for sure before I start my DMP, as if I need to open a new account elsewhere I'll obviously have to hang on a couple of weeks.

Can anyone help point me in the right direction to find out?

sam89

I'm really answering to bump you back up the page, but I do think they can offset between companies. Thay's why there is a lot of anxiety about Santander buying so many and linking them together.

Someone smarter than me will hopefully give you a proper answer soon.

Sam,
x.

chumpycheet

Thanks Sam - can anyone help, please?

Deep_In_Debt

I think they can too. I used to bank with Abbey and had an Abbey/MBNA credit card and CCCS told me that Abbey/MBNA could offset against my current account (although nothing in it!) and my savings account so I moved from Abbey just to be on the safe side.

skylight

It all depends on T&C's really.

Take Paypals advice and open a "clean" account. Its not worth the hassle to you in the future - what will you do if they do offset??

chumpycheet

Thanks guys - co-op bank here I come.

Deep_In_Debt

I opened a Natwest Step account with Solo card and you can open it on line. Just a thought - might not be suitable for you though.

Good luck.

oscar52

Nope, they cant offset you credit card against you current account. Your A&L credit card is issued and completely run by MBNA, A&L have literally, nothing to do with it. Your current account is safe.

I work for MBNA (dont hit me:A ) so know this to be 100% correct.

chumpycheet

Oscar,

You're a legend! Thank you very much, as this saves me a huge amount of hassle.

Incidentally, the account was opened in 2005 and has always been with MBNA - it wasn't an A&L debt that was previously taken over, so I thought I was safe...