Lloyds & Halifax...

TheRedAdmiral

About 12 months ago I had an account with LloydsTSB (The account was in the name of myself & Wife). The account was around £400 overdrawn. However, due to the fact that I had £2000 worth of bank charges, I chose not to use the account anymore and open a few accounts with Halifax.

I opened 3 accounts with Halifax. 2 in Joint Names (Husband & Wife). One I use as a current account and one I use for business purposes - although it is not strictly a business account. The 3rd account was opened in my wifes name only which we use as a Savings Account for holidays etc.

As luck would have it Lloyds then bought Halifax!!!!

I have recently received a statement from Lloyds stating that my account is now £1000 overdrawn - despite the fact that I have not used the account. I am challenging this.

The crux of my question though is:

1) Can LloydsTSB "Clawback" the money from my Halifax Account (which is in Joint Names)

2) Can LloydsTSB "Clawback" the money from the Halifax Account which is held solely in my wifes name.

Your thoughts are appreciated....as I need to decide whether to move the money again..

AfterDark

They can claw back from either account, your financially linked with your wife so I'm pretty sure they can take it from the sole named account as well.

If your due them the money, why don't you just pay them out of your holiday fund ?

TheRedAdmiral

Cheers - Do you think it is likely that Lloyds will have access to the Halifax data and vice versa.

I only ask as the indications are that they dont seem to cross reference at the moment...

AfterDark

Yes their systems are currently being merged. It should be easy enough for them just grab the cash out of which ever account they feel like.

Prob be best to phone them and come to some sort of payment arrangement, so they don't just swoop in and empty your account

opinions4u

At present the T&Cs of LTSB and HBOS do NOT allow for right of set off across the two brands.

I would think that it's almost certain that they will do in the not too distant future though.

fischer79

I thought after the recent mailings by all the banks of new t's & c's (due to european regulation) that lloyds banking group did introduce the right of set off starting 1st November. This means all accounts with brands owned by this company are accessible to pay debt.

Opps Actually they cant just checked online on the t's and c's http://www.lloydstsb.com/media/lloydstsb2004/pdfs/cra.pdf and section 17.1 clearly says Lloyds TSB brand NOT lloyds banking group. therefore no access to HBOS branded products