Off-Setting between group owned banks

kilasuit

I was wondering if lloyds could offset from my halifax account as they are under the same banking group?

Any cases of something like this happening at all?

DevilsAvocado

Offsetting (the reduction of interest paid on money lent through forfeit of interest earned on deposits) is different to the legal right to set-off debt.

That said, Lloyds and Halifax remain separate legal entities, despite having the same parent. They are unable to set-off debt between the two because of this.

ROM29

DevilsAvocado wrote: »

Offsetting (the reduction of interest paid on money lent through forfeit of interest earned on deposits) is different to the legal right to set-off debt.

That said, Lloyds and Halifax remain separate legal entities, despite having the same parent. They are unable to set-off debt between the two because of this.

hmmm i'm not so sure! Section 30 of the T&Cs state that they can set-off between lloyds tsb group companies.

kilasuit

They are now the Lloyds Banking Group which halifax falls under but as stated at S30 it clearly says Lloyds TSB group company.

It is a technicality but if it hasnt been updated then it should be clear that if they did go down that route then i reckon it could be classed as unlawful.

DevilsAvocado

ROM29 wrote: »

hmmm i'm not so sure! Section 30 of the T&Cs state that they can set-off between lloyds tsb group companies.

As said before, they are now owned by Lloyds Banking Group. This would require revised sets of terms and conditions to be sent to customers for them to be able to do this.

The Lloyds TSB Group included Lloyds TSB, C&G, etc. That group doesn't exist anymore; it's now The Lloyds Banking Group. As the terms and conditions specifically refer to The Lloyds TSB Group, they have no basis to set-off within the Lloyds Banking Group.

System

It does still exist

1. Lloyds Banking Group is just the new name for the Lloyds TSB group.
2. HBOS is a subsiduary of LBG, Bank of Scotland is a subsiduary of HBOS.
3. Halifax is another name for Bank of Scotland.

DevilsAvocado wrote: »

As said before, they are now owned by Lloyds Banking Group. This would require revised sets of terms and conditions to be sent to customers for them to be able to do this.

The Lloyds TSB Group included Lloyds TSB, C&G, etc. That group doesn't exist anymore; it's now The Lloyds Banking Group. As the terms and conditions specifically refer to The Lloyds TSB Group, they have no basis to set-off within the Lloyds Banking Group.

crispy_chris

Just to confirm the banks are owned by the same holding company (LBG) but aside from that they operate as two entirely seperate banks.

One does not have the ability to perform a ROSO from the other at present.

ROM29

crispy_chris wrote: »

Just to confirm the banks are owned by the same holding company (LBG) but aside from that they operate as two entirely seperate banks.

One does not have the ability to perform a ROSO from the other at present.

They don't have the ability as yet, but when the systems are in place the T&Cs will allow it.

GiraffeMan

DevilsAvocado wrote: »

Offsetting (the reduction of interest paid on money lent through forfeit of interest earned on deposits) is different to the legal right to set-off debt.

That said, Lloyds and Halifax remain separate legal entities, despite having the same parent. They are unable to set-off debt between the two because of this.

Oh BarclaysManager thats a fine answer

Extant

GiraffeMan wrote: »

Oh BarclaysManager thats a fine answer

Thanks. I wasn't aware I'd typed that, but I'll take credit for the guy's post!

GiraffeMan

I apologise, your fan club were describing your demise on another thread and were fretting so much about your absence. I thought you had reinvented yourself but now I understand Barclays may have more than one superhero