Will Lloyds TSB name change invalidate credit agreement?

gbhxu

I know that some of you will think that this is a daft question, but someone has got to ask it.

Will LloydsTSB Bank PLC changing it's name to Lloyds Banking Group plc invalidate credit agreements?

fermi

I can't imagine for one second that it would.

stapeley

gbhxu wrote: »

I know that some of you will think that this is a daft question, but someone has got to ask it.

Will LloydsTSB Bank PLC changing it's name to Lloyds Banking Group plc invalidate credit agreements?

You are absolutely correct . I think it is a daft question .

gbhxu

Why?

LloydsTSB Bank PLC will no longer exist, so in effect, you'll have a credit agreement with a non-existing company.

There will be a new company formed called Lloyds Banking Group plc.

Isn't this very similar to "phoenix companies" and liability?

bargainbetty

For experience of company mergers, takeovers etc, everything considered an asset (including all owed monies) would be considered as the property of the new organisation and your agreement will stand. Simple transfer of assets.

Sorry, nice idea, but Alliance and Leicester just got bought by Santandar and it means my mortgage is now with them, not that I can stop paying!!

Wishful thinking.....

shinyhead

The only daft question is the one you don't ask.

Agree with betty that any agreements will be classed as assets and so the name change won't matter. Nice idea though...

gbhxu

To be honest, I'm waiting for the FSA to answer this question.

All it needs is one person to take on the bank to set a precedent.

Burlesque_Babe

to be honest, the whole system would fall apart if that could even remotely happen. Any mortgage with a bank that is taken over by another bank, any loan with a company which merges, is taken over etc? Credit card companies which change their name because they are part of an institution that is now owned by someone else? All don't have to be paid because of a change of name?!

Sorry, but I don't think it's worth the effort even contacting the FSA.

edinburgher

gbhxu wrote: »

To be honest, I'm waiting for the FSA to answer this question.

All it needs is one person to take on the bank to set a precedent.

This would seem to be a really silly question, regardless of your optimism (which I applaud). Really can't see anything coming of this - the government didn't allow this merger so that people could suddenly not pay off their debts

KIM2801

Your Credit agreement will contain an assignment clause allowing them to sell individual debts or the whole company.

oscar52

I am sure that all this would have been looked into long ago. Lloyds its self took over/merged with TSB and Halifax with Bank of Scotland. The merger of these two companies would be no different.