Llloyds TSB and Halifax

pinkcowface1

I have debt - bad debt (as some of you will know) however, I quickly opened a current account with Halifax last year, before I told all my creditors including my old bank about my debt and my inability to pay them the required amount each month. Unfortunately, for me one of my creditors is Lloyds and initially they accepted my reduced payment plan without any fuss. However, just recently they have started bothering me and saying I havent paid my monthly payment when I have - I am not in arrears but a worrying thing appeared on my Lloyds credit card statement which said "Our terms allow us to transfer any available funds from your LTSB account to offset any outstanding arrears." Help. I can't sleep worrying about it - does that mean they are ready to plunder my Halifax account. I am in the middle of doing battle with Lloyds trying to get them to accept my reduced monthly payment but I am now paranoid and checking my online account all the time now. Advice needed please. What I really need to know is how joined at the hip now are Lloyds TSB and Halifax? Should I be worried?

10past6

Opps, wrong thread

GeorgeUK

Quite a while ago i read about these 2 banks taking money from accounts from the other. Will try to find those threads again and see if anything ever came from them.

If you are worried, you should be able to open another basic account with someone like the post office or Co-op.

I_need_therapy

pinkcowface1 wrote: »

What I really need to know is how joined at the hip now are Lloyds TSB and Halifax? Should I be worried?

They are as joined as you can be, both now sit under the LLoyds Banking Group so are one bank. Do as George says and get yourself a basic account with someone there are no ties with any of your debts, you are then in control of who gets paid what.

DarkConvict

Yes, its called offsetting they can transfer money, they do it all the time and those people in chaos often making them incur charges (failed DD), missed rent etc.
Switch banks now, co-op is always a safe bet to goto, move your income and current account funds to co-op, from there they cannot touch them.

Guide - http://www.moneysavingexpert.com/banking/setting-off

Since you are making less than the contractual amount, (your reduced payment), your are in arrears so they can as you say plunder your current account.

pinkcowface1

Thanks very much for your advice - I do feel worried So will try and find another bank.