is this anything to worry about?

daffodil

Hi
On Friday I received a notification from Halifax about a change in the Ts&Cs it is as follows:-

"HOW WE DEAL WITH MONEY YOU OWE US"

We're adding a new clause to Condition 11 of your terms and conditions. It means we'll be able to make payments owed to us under your existing agreement from current or savings accounts you have with us - including joint accounts if we need to. We would only do this if you stop paying them on time. We would only do this if you stop paying them on time. We'll only do this in line with any relevant guidance in any Code of Practice that applies to us, or as required by our regulator or another similar body.
We're also adding an additional clause that means that if we owe you any money for any transactions, interest or charges on this account then we may use it to help pay back any money you owe us under this agreement. If we plan to do this, we'll contact you before it happens. Again, we'll follow any relevant guidance in any Code of Practice that applies to us, or as required by our regulator or another similar body. We'll also update Condition 11 to reflect this change."

Now, I'm not good at all this legal stuff, but I dont like the idea that Halifax can take money from any of my accounts with them if the payment is late. I just dont trust banks these days.
What would happen if there was a power cut? My payment would be late probably.
Anyway just to be on the safe side I have emptied my savings accounts with them today.

What do you think?

Buzby

They've been doing it for years. It's called 'setting off' and any accounts in credit can be used by them to regularise any deficient account. Unfortunately, they were told this automatic right was not on - so this term regularises eat they had being taking for granted previously!

This was usually done to regularise indebtedness - but not to recover late payments until they really became delinquent.

opinions4u

It's a standard right of set off clause that's always been in your terms and conditions.

It sounds like they've rewritten it to clarify their rights on a joint account and to reference codes of practice.

BCOBS, the relevant code of practice, lays down strict guidelines on when and how they an apply right of set off.

My own view is that you've over-reacted. But it is one way of handling things.

What would happen if there was a power cut

The lights would go out.

daffodil

I have probably over reacted but I feel a whole lot safer now, thanks for your thoughts

cos_2

The power cut thing is interesting, though. Not so many moons ago we all had to make sure our banking was complete by 3 o'clock (or was it 3.30?). Nowadays, we pretty much expect 24-hour access via the internet.

I would hope that banks would give some leeway where loss of online access could cause issues. Although, I doubt it muchly . . .

[Deleted User]

easy to avoid just set up a dd for at least the min.payment each month

jojo57_2

This has always been the case, but they would only do it as a last resort,if you have been in arrears for a long time on another acount.

AdamJK_2

I wouldn't worry too much - a single missed payment is unlikely to kick of the 'setting off' process. If I remember rightly they only try to recover funds after a default ticks over to the third month.

As others have said though a minimum payment direct debit is the best thing to do to avoid late fees and credit file impact. We all have the best intentions to pay but things can slip the mind, especially during bereavement or illness etc.

daffodil

Thankyou all so much.
I do have a direct debit set up because I forget things a lot.
I just thought that a power cut might interrupt the payments but this is the 21st century isnt it - we had a lot of power cuts when I was younger during general strikes etc, its not something you forget easily. In fact we had one here recently but it only lasted an hour or so. I suppose things have moved on.