Urgent! Advice Please...

suetmc03

...with regard to credit card debt and associated bank account;

We have a joint bank account (with almost up to the limit overdraft) and I have a credit card debt with the same (Llloyds TSB). My husbands saary goes in there, I don't have an income now except tax cdts and cben.

My questions are;
1) does anyone know how likely Llloyds would be to dip into the account to retrieve money for the credit card
2) can they do this if they have agreed to my debt management plan?

Thanks to anyone who can advise.

Sue

Becles

I don't think Lloyds credit card can take money from your current account without your permission. I would be horrified if they did!

secretsquirrel_3

I would not trust them not to. When my husband's aunt died she had a big Barclaycard debt and they took most of what was in her Barclays current A/C to cover some of this without telling anyone!

johannamse

I would open a new account. I know poeple have suggested it to people before. It also allows you to feel good about yourself. Nothing like trying to get out of debt, and always claculating in minus's. If you think you may not be able to get a fully fledged ac, get a basic one. Good luck.

sarahjt88

Hi,

The bank would usually be allowed to take money out of your joint account to pay off your credit card debt. This is known as the right to set off. If you are at all worried about it, I would sugges talking to your bank: you may be able to get their agreement that they will not take money out of the current account as long as you keep to an agreed repayment schedule. Get this in writing from them if at all possible.

Good luck!

mattp_3

Yes unfortunately this can happen - if you are in arrears with payment to a loan or creidt card and you also bank with them, they can cancel/reduce overdrafts or just take money from your account to "off-Set" against the debt

It is rare, but trust me, it can happen

!!

Don't forget about "linked" Banks and Building Societies such as:

First Direct & HSBC

Halifax & Bank of Scotland (HBOS)

Barclays & Barclaycard & Masterloan & Woolwich

Natwest & Royal Bank of Scotland

These companies have merged and thus may share information - so if you have a Barclays Bank account, don't open a new account with Woolwich.

It is always best to open a new bank account once you are behind on payments - even if you have a poor credit rating then you can always get a "basic bank account" which will come with just a cash card rather than a Switch or Visa/Delta card.

If you are struggling to budget accurately, try this for a while so that you have to pay for everything with cash - you will be surprised how much money you feel you are wasting when you have to hand over those lovely pictures of the queen rather than just signing a piece of paper!