is this allowed

yohy

HI
i have a Lloydsbusiness account. business is awful and has been last few months. after xmas business manager agreed a loan and it helped to sort out some problems. my online banking has been out of use and i was waiting for a new password so not really been lookng at the balance!!!! went to use card last week and on contacting bank they tell me i have missed 2 loan payments and have frozen my account. THey stopped all my s/o and i cant get toany of my money. I know i am silly but took a business acount on the adives of my accountant.............i am a childminder and dont earn a great deal. I now have no cash at all my perso0nall account is empty and i cant pay my council tax or gas bill cos all my money is with loyds. business manager is no longer friendly and says only that someone will contact me in the next week or so and that my mney is theirs. can they do this

jambosans

I'd imagine the answer is yes they can do this.

You need to read the terms and conditions of your business loan and account.

izools

It's called right of offset.

This means that if you hold an account which you owe money on, and you break the terms of this account by, for example, missing loan payments, going over your overdraft limit, etc etc, the bank has the right to pay your failed repayments / recover the debt, from any account you hold with them that is in credit at the time. They don't have to ask for consent or give you warning, as you agreed to right of offset as part of the original aco!!!! terms.

The fact it's a business a/c or business loan doesn't matter. Same would have happened if you'd missed personal loan repayments with the same bank you hold your current account with.

pleasedelete

As a childminder you shouldn't really need a loan and you shouldn't use business money to pay council tax or gas. You need to proportion these bills back to the business not tne other way round.

Have you Bern on a business link basic course? I woukd recommend it. You also talk about earning- are you self employed or limited company?

Sounds like you do need a business accou t as you are mixing personal an business money which will cause big problems.

yohy

as i childminder i was advised to pay all of my utilitie bills, car ins, council tax, etc out of my buisness account as they are all taken into account when one childmnds from home. the loan was for a car without which i could not work. my account is in crdit, and the loan money has been taken and the account now up to date tehyrefuse to let mehave any of my balance until someone has spoken to me in the next wek or so. i dont have a peny to my name and my council tax is overdue as of today

jonesMUFCforever

How do your customers pay you?
Can you not ask for cash this week instead of cheques?

yohy

too late, they all transfer direct to bank.. managed to stop one but the biggest has gone into loyds. they wont even speak to me now just telling me to wait for a call in next week. god knows what i shall do, husband not paid till firday and literally have nothing