Lloyds TSB Account - can Halifax access to offset debts?

fran1137

Hi, I recently changed from co-op to Lloyds TSB as the co-op is a nightmare account to run online. They don't update your available balance and therefore when my OH spends on his debit card I don't know until several days later, which is no good when trying to run a tight ship!! I am setting up a DMP with Payplan and they have advised Halifax can access my Lloyds TSB account to offset the debts owed to them (iro £2,000).

I have looked at other posts re this and they are older and not really clear. The only option I have is to change back to the Co-op which I am reluctant to do for the reason mentioned. My lloyds account is so much easier to manage but obviously I don't want them to just dip in when our salaries get paid in.

Can anyone tell me for certain thay they will do this please?

Thank you

DVardysShadow

Halifax can access a Lloyds account, provided they are in the same names or one of the accounts is a joint account with the same name. Strictly I believe it is inequitable to take from a joint account to pay a debt in a single account, but the banks only respect money when it is theirs.

ab1975

I have 3 debts with Halifax (total 5k)- was on DMP but now stopped. Set up a basic account 2 months ago with Lloyds TSB unaware that they are a part of Halifax!! I have my salary going into my tsb account mid next week - absolutely worried they are going to take all my money!! Too late to set a new account but is there a realistic chance of halifax/hbos offsetting like this??? Or are two separate entities? Has anyone any experience of this? thanks.

didaiva

I had a IVA, it's since been completed. I had a £10K debt with Halifax, it was subsequently sold to Max Recovery I believe in the end.

I kept my Halifax account, without overdraft and have started using it since my IVA completed to transfer across £1,000 a month from Lloyds TSB to get a fiver out of them every month.

They have not offset anything, but then again the debt was legally settled earlier this year when the IVA completed and they did sell on the debt to Max Recovery anyway.

I'm also saving with Lloyds TSB and they have not offset my savings to the debt, again these savings were done after the conclusion of the IVA so that's probably why.

I have read in the T&C that companies within the Lloyds Banking Group can offset, so if there is a debt outstanding I'd be careful. But then again I've been banking with Lloyds TSB throughout my IVA and they have not took a penny from my Lloyds account, thank God.

HTH

ab1975

thank Didavia. But the situation is different for you as your are on an IVA and once you are in that banks lose the right to offset. I've been on a DMP so that's why the worry!!!

didaiva

ab1975 wrote: »

thank Didavia. But the situation is different for you as your are on an IVA and once you are in that banks lose the right to offset. I've been on a DMP so that's why the worry!!!

I was told that the bank had the right to offset when I entered the IVA. I was told to open an account with a bank which was not a creditor for this reason.

At the time Halifax and Lloyds were two different banks so opened the account with Lloyds TSB.

I continued to use Lloyds TSB throughout after they became part of the same group during my IVA and beyond and did not offset.

[Deleted User]

Yes they can

But, I would not think that they would so quickly.

If I were you I would change just as soon as you can, you can't do anything but move as and when you can.

I know that you are worried, but you can't be assured that it cannot happen as the risk is real. I don't think it's likely though, but that's my opinion.

Good luck.

ab1975

thanks. Hopefully I can take out on the day it's paid in. Just worried they'll be waiting for it to be deposited and they'll take out the same time as when it's deposited!

DaveK1971

ab1975 wrote: »

thanks. Hopefully I can take out on the day it's paid in. Just worried they'll be waiting for it to be deposited and they'll take out the same time as when it's deposited!

I'm in exactly the same boat. Thought I'd sorted it all ready for my first DMP payment they discovered that two of my supermarket credit cards are actually run by the bank I'd set an account up with! Have opened a new account but too late to divert salary so will have to beat them to it and transfer it upon deposit.

I have been told that it's unlikely the bank would actually offset but it is a possibility. Fingers crossed it goes to plan otherwise I will be unable to pay my DMP, rent, eat or get to work!!

Real rollercoaster ride this DMP experience!