Can Lloyds do this?

loopyloulou_3

I have a joint account with LTSB with my partner (I have loads of other bits with them too) and he has a CC with them. He is late with his CC payment and from what I can see on our joint acc statement, it looks like they have taken his min payment out of our joint account. Neither of us have given permission for this

can they do this?!

loopyloulou_3

really? well not that i read them. is this usual practice then? they can just help themselves out of our joint account to pay his credit card?

moozie_2

In their T&Cs they usually include something like if you go into arrears in an account with us, we will take the money owed from other accounts with us. I presume the CC is with Lloyds? If not, then it's not right.

It's not nice but it's legal

domestic_goddess

Most banks have this policy in place in their terms and conditions. If you fall behind in your credit card / loan agreement but have money in another account with them they have the right to take out your arrears. One bank takes the money out just after your pay day and will leave you enough money in their to cover only the regular direct debits that come out of your current account and an extra hundred pound to live on.

Hope this helps

x

climbgirl

loopyloulou wrote:

really? well not that i read them. is this usual practice then? they can just help themselves out of our joint account to pay his credit card?

Yep, standard practice, I don't know of any bank who doesn't have this in their T&C. There's always something to the effect of any other account held at the same bank can be used without prior warning to pay arrears in a particular account

You should ALWAYS read the fine print of what you're signing up for too, maybe that's the lesson here....It's no use getting mad at banks for doing things that are clearly stated in the T&C, which you've signed as having read....

loopyloulou_3

thanks all. a little annoying as because my OH hasnt paid his CC i suffer the concequences! Grrr. He is getting it sorted today.

I didnt get angry with the bank, or even call them about this issue as i wanted to check whether it was standard procedure or not.

flowerofscotland

loopyloulou wrote:

thanks all. a little annoying as because my OH hasnt paid his CC i suffer the concequences! Grrr. He is getting it sorted today.

I didnt get angry with the bank, or even call them about this issue as i wanted to check whether it was standard procedure or not.

Unfortunately that is one of the consequences of having a joint account. Don't know if this would work for you but DH and I have separate joint accounts by which I mean that my money goes into one and his goes into another - and they are with different banks. They are both joint accounts so that we don't have any secrets and if anything happens e.g. hospital admission we can access each other's money. It works for us ( it didn't keep us debt free though that's a different story....)

fatbelly

Presumably he's got his own LTSB account?

He needs to at least set up a D/D for the minimum payment so that he doesn't forget again and incur penalty charges. Or if he wants to, he can set up a D/D for the full amount each month.

Tootsie_Roll

Ok this is interesting - They may not be able to take the money out of your account and it is definately worth an attempt at getting it re-credited to your joint account - it might depend on the Terms and Conditions of your joint account however I doubt it. Most banks do make refernce to it in their t's & c's but it is not cut and dry. They may well be relying on their 'Right of Set Off' (ROSO) which is common law to everyone.

I used to apply ROSO frequently when dealing with mortgage cases where we were about to take the property back. We were not allowed to take money from a joint account to pay the debt of a single account holder regardless of the fact they were co signatories on the joint account. Applying ROSO to a joint account from a single account is OK. This could have just been our bank policy - I am not 100% certain but worth a go.

So please attempt to reclaim the money.

Good luck.

Bossyboots

I was wondering about how ROSO applies to a joint account as well but if I recall correctly the phrase used by the credit card companies is that they will take the money from "any" account which has the cardholder's name.

However, as only half the money in a joint account would belong to the cardholder in this case, I wonder what would have happened if the amount to be taken was more than the account balance.