Do Lloyds credit card share info with Lloyds bank account?

mtm103

Hi all
I am trying to help a friend with some money problems. She has about £100k in debt (mostly credit cards). We are trying to sort it out, and she has a job now (not that well paid to ever pay the minimum amount on all of them). The interest rates on the majority of credit cards are 30%. Her bank account is Lloyds TSB. Amongst her many credit cards, she has 2 lloyds credit cards with around £10,000 on each. I was going to write to Lloyds, advise she is having financial problems and ask for the interest to be frozen while she sorts it out (min interest is around £200 per credit card, so £400 goes to Lloyds alone every month to cover the interest). However as she also banks with them, they can see she has enough money coming in to cover their credit cards (but this won’t cover any of the others, I suppose Lloyds don’t care if she stops paying mbna et all). So my question is, does the bank share info with the credit card company as they are both Lloyds? I did think about her opening a new bank account, but she won’t get it with her credit rating, it is quite dire. She also refuses to go and see anyone about it, I am helping as she has gone though a bit of a difficult time, but I am the only one that has seen the full extent of the debt.
Thanks all

Reggie256

I assume that they either do, or can if required.

I am/was with HSBC (still have my current account with them) and had a credit card through them. Both accounts appeared on internet banking when I logged in, and transferring funds from my current account to credit against the credit card account was a very simple undertaking.

I suspect that if the 'customer' is able to process such transactions then the bank itself would have little difficulty doing the same.

Tixy

Not only do they share info, but they'll be able to offset funds from her current account to put towards the credit cards.

If she can't keep up with repayments or is going to advise of financial problems then she definitey needs a new bank account elsewhere first, and her income safely in that account, with a bank totally not connected to anyone she owes money to.

She should be able to get a basic bank account no problem as that have no credit facilities it doesn't require a credit check. As she has lots of different creditors if you are struggling to find one that is not connected to any of those perhaps Co-op cashminder would suit (if she doesn't have a co-op credit card).

She could also seek some advice on the CCCS website or try their online debt remedy tool to see what it suggest (and is anonymous).

rocketman80

Yes they certainly do. They will take money from her Lloyds TSB current account to pay her Lloyds TSB credit cards if she doesn't pay them.

mtm103

Thanks all, I thought as much, but thought I would better check. She has about £1,000 or so spare every month (maybe more if she moves back in with someone), but that has to cover a few min payments on a few credit cards. Lloyds will see this, she does intend to keep paying them, but we are going to ask for the interest to be frozen to nil (do they do this?? Thought I would give it a shot). One other alternative is that she gives her new address (she has not moved any credit cards etc to her new address) and when they ask how long she has lived there, say 5 years, so they don’t make the connection to the old address (where all the cc are registered to). I assume this is illegal, but desperate times…

Tixy

Absolutely don't start lying about things like time at address - it will show up on national hunter database as false and fraud. And will cause problems. And they'll still link the addresses almost certainly.

If she is in difficulties and/or is going to ask for interest to be frozen she needs a new basic bank account first. Its easy to set one up and won't require a credit check.

To be honest I really would suggest she gets some advice from one of the debt charities as whilst you are clearly trying to help you could end up making things worse for her.

RAS

mtm103 wrote: »

One other alternative is that she gives her new address (she has not moved any credit cards etc to her new address) and when they ask how long she has lived there, say 5 years, so they don’t make the connection to the old address (where all the cc are registered to). I assume this is illegal, but desperate times…

Do not do this. She will get spotted by National Hunter and will not even be able to get a new basic bank account. They do not check credit ratings for basic accounts but they do check National Hunter and a fraud marker means no new financial services at all for a number of years (depending on how bad a mark is placed on an account).

We had one chap on here whose planned house purchase was wrecked because he applied for insurance at the house and a new credit card at his flat.

RAS

She needs to speak to one of the debt charities listed here, urgently.

And if she does an SOA we may be able to advise on savings or ways of making the money work better.

mtm103

Thanks, most odd, I have never heard of National Hunter, but can see how it would work. I thought of it as an option as she has a really common surname (think Smith), and might get away with it..
Anyway, have an application for the Co-op, will ask her to go in tomorrow. She finds it next to impossible to talk to anyone about her problems (It took me months to get the full extent of the problems out) so I know she won't talk to a debt company about it, hence why I am helping so much. Mbna haven't recieved a penny since January so I know her credit rating will be bad (I have just done a SAR request).
I should actually point out we live in the Channel Islands, so they would have to take her to court here (all the cc were taken out when she was living in the UK). Can I talk to anyone on her behalf, or will they say no?
Thanks

RAS

IF she wants you to talk to someone, she needs to give your written authority.

And warn her that the Co-op seem to operate a three strikes and you are out policy. Go overdrawn three times and the account is closed.

Sparklyfairy

She doesn't have to go in to the Co op to start a bank account - they can do everything over the phone. The staff there are used to hearing from people with bad credit so tell your friend not to stress at all. She needs to get this sorted asap as lloyds literally raped my bank accounts when I failed my 1st cc payment to them....and if she does online banking, she'll need a card reader & for some reason it took several months for them to send it to me.

I'm sure you can try to talk to the debt charities on her behalf, but she really needs to understand the seriousness of the matter...let her read the comments on here - but if she feels ashamed, tell her not to - we have pretty much all been in debt & are trying to find our way out of these messes, so she'll be in good company.

Yes, they can take her to court & MBNA have obtained a charging order on my home for a £9k debt.

Has she thought about bankruptsy? With such a high amount of debt, this might be her best option...