I changed my bank to prevent them offsetting my accounts but...

sarahjane88

Just a quick question; I won't get too far into the situation. I have two accounts with Halifax Bank of Scotland, one is my personal account and the other is a frozen joint account in the overdraft of around £280. (I am currently in the middle of disputing this with the bank and other joint account holder.)

I was advised to change my bank account so that the bank wouldn't be able to offset the overdraft with my own personal account. So I did. With Lloyds TSB. Then I felt stupid when I realised they were part of the same group. :doh:

Can HBOS still offset my accounts with my new Lloyds TSB account?

Thanks! :beer:

bengalknights

Once there merger is complete fully i would think so, but as there currently trading seperatly i wouldnt think you are at risk of having your money offset different T&Cs and banking licenses coming to mind.

rb10

Your Lloyds TSB T&Cs currently state ...

2.7 In this agreement, “we” are Lloyds TSB Bank plc or Lloyds TSB Scotland plc. We will have told you which company is providing a particular account or other service when you applied for it.
2.8 This agreement also refers in places to “Lloyds Banking Group”. This includes us and a number of other companies using brands including Lloyds TSB, Halifax and Bank of Scotland, and their associated companies. More information on the Lloyds Banking Group can be found at https://www.lloydsbankinggroup.com
[...]
17.1 If any money you owe us (for example on a loan, credit card, mortgage, overdraft or otherwise, under the Lloyds TSB brand or another brand such as Cheltenham & Gloucester) is overdue for payment, we may use any money you have in any of your accounts with us to reduce or repay (by way of set-off or otherwise) what you owe us.

So as it only mentions 'us' and doesn't specifically mention 'Lloyds Banking Group', I would say that at the moment you are safe to keep money in Lloyds TSB.

However, keep an eye on any T&C updates that you get from either Lloyds TSB or from Halifax in the future, as I expect this to change once their systems are fully aligned.

sarahjane88

I just opened it today over the phone although it isn't activated yet... I don't fancy changing again at a later date when their systems are aligned so I think I'm better cancelling it, and finding someone else lol. What a palava!

rb10

Well hopefully your debt to Halifax will all be paid off by the time Halifax & Lloyds merge systems completely!

pmduk

Just think yourself fortunate you realised now before it is too late!