dmp help

willy111

hiya
just signed up to payplan.
one question i would like to ask is i have an account with a bank who my partner banks with as well.
can that bank take money out of her account?
and also my childs savings account?

Hannah_10

Have you and your partner got any joint financial products? Do you have a loan together for example? Or a mortgage?

How old is the child?

willy111

hi.
we have a mortgage together.
the child is 3 years old.

Hannah_10

The child is perfectly safe.

Is th mortgage in arrears? Do you owe your bank or any bank in thier group money? If you don't know if two banks are in a group name them.

willy111

hi.
the mortgage is 1 month in arrears with halifax,and that who the bank accounts are with.
also i have a sainsburys c/c as does my partner.

Hannah_10

What I do know is that Sainsburys has links to the Lloyds/HBOS group which means it is possible there is the right of "Set Off" between Halifax and Sainsburys Finance. I do not know for sure though, so I am hoping someone who is sure sees this in the morning. Read this, it explains what setting off is.

Halifax could "set off" money owed on your mortgage to either your bank account or your partners bank account. That means they can steal from you.

Because you and your partner have a mortgage together you are financially linked. That means Halifax can demand or steal (using setting off) money from either account for this. If Sainsburys have the right of set off from Halifax accounts then they can take only from the account of the person named. No one can take money from your child.

Unfortunately although the rules are not always follwed and so I would, if I were you, open new accounts with a bank not in any way linked to the Lloyds/HBOS group. Co-Op are good for people in finacial trouble, some recommend Barclays who are also nothing to do with the Lloyds/HBOS group, but avoid any of these like the plague.

willy111

hi.
hopefully will have arrears cleared shortly.
just opened a basic account with nationwide.
i was worried that halifax could steal money from partners account as i am on dmp to pay my halifax overdraft.

Hannah_10

Technically speaking I don't think so unless it's for the mortgage (unsure again- awaiting clever people's help). Practically speaking lenders breaking rules isn't unheard of, including set off rules. It's a lot less worry (and a lot less work than you think) if she pops into town tomorrow or ASAP and just opens an account with someone else. As long as she's got the right ID on her it shouldn't take long and moving any Direct Debits over to the new account isn't hard either.