Lloyds Bank - Terms & Conditions - (2 Accounts) 28 August 2010 at 8:52AM in Reclaim bank & credit card charges 5 replies 916 views

TheRedAdmiral

If a person has 2 accounts with the same bank (eg. Lloyds) - Does the terms and conditions allow Lloyds to transfer money from one account to the other?

Cheers

zppp

TheRedAdmiral wrote: »

If a person has 2 accounts with the same bank (eg. Lloyds) - Does the terms and conditions allow Lloyds to transfer money from one account to the other?

Cheers

Yes they do

YorkshireBoy

Yes, it's called the right to 'set-off'.

TheRedAdmiral

Thanks for the replies. I really appreciate this.

The reason I ask is that I am presently looking after my sister in laws account and noticed that she has received some bank charges.

Her "Main" Lloyds account is a current account and it is this account that has accrued charges. However her other account has had a balance, pretty much continually, of over £4000 in it.

My question is therefore "Why didnt Lloyds simply transfer the money, as per their contractual right, rather than making an unecessary charge?"

Does anyone have any views on this?

Irrespective as to whether she should have transferred the money herself - Does anyone believe that this can be argued positively?

YorkshireBoy

TheRedAdmiral wrote: »

...I am presently looking after my sister in laws account

Under some kind of power of attorney?

My question is therefore "Why didnt Lloyds simply transfer the money, as per their contractual right, rather than making an unecessary charge?"

The cynic in me says because they wouldn't make any money that way! However, I wouldn't want my bank interfering with my money.

Does anyone have any views on this?...Does anyone believe that this can be argued positively?

If she hasn't got a history of bank charges then asking for a goodwill gesture and mentioning the savings may help.

Longer term she (or you if you have POA) needs to more closely monitor her accounts or get a buffer either in the form of an agreed overdraft facility or self-fund the buffer by moving some of the £4K over from the savings account (the 'cost' for the latter will be minimal with the poor interest rates available these days).

Premier_2

TheRedAdmiral wrote: »

...My question is therefore "Why didnt Lloyds simply transfer the money, as per their contractual right, rather than making an unecessary charge?"...

Because as YorkshireBoy has already indicated, the terms set out the right to set-off, not an obligation to do so.