Lloyds TSB from Halifax

Estj87

I wonder if somebody can advise?

I have a pretty bad past credit history, but now it's improving.

In 2006, I opened a Halifax Easycash account which they have since refused to upgrade to a normal account, despite paying in £1800 per month and never having run into any problems.

Last year I set up a Lloyds cash account which has been upgraded to a silver vantage account with a cheque book, so I must be doing something right!

My question is... Do Lloyds TSB and Halifax share info regarding internal credit scoring? I hate the thought of Halifax downgrading me or even worse, closing my account as Halifax always seemed to hate me!

Should I close down my Halifax accounts? (balance £0)

Chrisblue1962

Hi Estj87

Personally, I would keep it open and operate both accounts in parallel e.g.

Halifax = monthly bills, debit card spending, e.g. food, petrol
Lloyds TSB = personal spending - clothes, social, etc

Lots of people have more than one current account. BTW how long did you have to wait until Lloyds updated your Cash account?

My credit profile is trashed at the moment as on a DMP but would love better account than Cash account which has a "proper" Visa card which can be used at all cashpoints...

MoneySaverLog

Estj87 wrote: »

I have a pretty bad past credit history, but now it's improving.

My question is... Do Lloyds TSB and Halifax share info regarding internal credit scoring?

I do not believe so, only what's on the CRA I believe.

pqrdef

Estj87 wrote: »

Last year I set up a Lloyds cash account which has been upgraded to a silver vantage account with a cheque book, so I must be doing something right!

You're paying the fee. Cheque books cost money to print and cheques cost money to process. The bank loses money on basic accounts, so it keeps the costs to a minimum. Pay for silver and it will throw in the cheque book, also the use of other banks' cashpoints (another cost). But it doesn't say anything about credit. A silver vantage account with a cheque book can still be a no-credit account.

Toe-Jam

They do not share behavioural scoring on individual products, but they do share Credit information within the group, and the terms and conditions of all accounts were updated in 2008 when Lloyds took over to include set off rights from both banks.

SO basically if you have bad debts at Halifax they can pinch the money from your Lloyds bank account to pay it back without telling you.

Estj87

Chrisblue1962 wrote: »

Hi Estj87

Personally, I would keep it open and operate both accounts in parallel e.g.

Halifax = monthly bills, debit card spending, e.g. food, petrol
Lloyds TSB = personal spending - clothes, social, etc

Lots of people have more than one current account. BTW how long did you have to wait until Lloyds updated your Cash account?

My credit profile is trashed at the moment as on a DMP but would love better account than Cash account which has a "proper" Visa card which can be used at all cashpoints...

I thought about it but I absolutely detest Halifax, so would rather not use any of their services.

I had my cash account for almost a year, declined twice, waited 3 months again and all OK. :-)

MoneySaverLog

Estj87 wrote: »

I hate the thought of Halifax downgrading me or even worse, closing my account as Halifax always seemed to hate me!

Halifax cannot close down your Lloyds TSB Vantage account, it's a different bank. If you have a current debt with Halifax then has as been pointed out they can offset across the group, but if these are satisfied now which I suspect they are if Lloyds have agreed an account then you should be ok.

Also any reason as to why you chose the silver account as opposed to the free classic vantage account?

System

I've never seen anything authorising setoff between Bank of Scotland plc & Lloyds TSB Bank plc. The sharing is restricted to information as far as I'm aware.

Obviously, either bank can refuse to open a new account or can close down an existing one by giving appropriate notice.

MoneySaverLog wrote: »

Halifax cannot close down your Lloyds TSB Vantage account, it's a different bank. If you have a current debt with Halifax then has as been pointed out they can offset across the group, but if these are satisfied now which I suspect they are if Lloyds have agreed an account then you should be ok.

Also any reason as to why you chose the silver account as opposed to the free classic vantage account?

MoneySaverLog

Apparently they wrote out to customers about it, though I never received anything in the post about it personally, just going on hearsay that they can offset across the LBG.

Estj87

MoneySaverLog wrote: »

Halifax cannot close down your Lloyds TSB Vantage account, it's a different bank. If you have a current debt with Halifax then has as been pointed out they can offset across the group, but if these are satisfied now which I suspect they are if Lloyds have agreed an account then you should be ok.

Also any reason as to why you chose the silver account as opposed to the free classic vantage account?

I needed the benefits (AA, Mobile phone insurance, etc) - saving myself nearly £200 a year!

I have no debts with Halifax - never have. Always operated my account perfectly.

MoneySaverLog

No need to worry then :-)

If Halifax don't want to upgrade you to the free reward account, I'd close the account down.