Lloyds TSB CC and Bank Account

lisacmitch98

Hi All

Can you tell me whether Loyds TSB have the right to access your current account to take out money owed to their credit card division? My parents have a credit card with Lloyds TSB and were a week late paying the bill, when they recieved a statement they noticed that lloyds tsb credit cards had accessed their account and had taken out the payment. They have never authorised a direct debit payment with the company so wanted to know if this was legal, particularly since they gave no authorisation to do this??

Many Thanks

Lisa

xplora

lisacmitch98 wrote: »

Hi All

Can you tell me whether Loyds TSB have the right to access your current account to take out money owed to their credit card division? My parents have a credit card with Lloyds TSB and were a week late paying the bill, when they recieved a statement they noticed that lloyds tsb credit cards had accessed their account and had taken out the payment. They have never authorised a direct debit payment with the company so wanted to know if this was legal, particularly since they gave no authorisation to do this??

Many Thanks

Lisa

They do not have such authorisation according to my experience until court order has been mail to you, but they help your parents save interest fee and advance charge.

My friend having same case like you but he didnt pay for 2 months in HSBC. The credit card company only demand him to pay the rest of the amount or the card will be canceled and should be directed to the court but didnt take the money from his account .

RTNI

It will be in the conditions of the bank account that if you fall behind on another product then they can go in and take the money from the current account, so the answer is yes.

tom188

Yes - the right to offset the balance of one product in credit to take another product with the same company out of arrears is very standard practice and has been for many years.

exel1966

xplora wrote: »

They do not have such authorisation according to my experience until court order has been mail to you, but they help your parents save interest fee and advance charge.

My friend having same case like you but he didnt pay for 2 months in HSBC. The credit card company only demand him to pay the rest of the amount or the card will be canceled and should be directed to the court but didnt take the money from his account .

That's incorrect !! They CAN and will if they deem it necessary ! To take money for one overdue bill seems very unlikely unless it is a regular occurrence or there are other circumstances dictating this.


STANDARD CONDITIONS YOU'LL FIND ON MOST BANK OPERATED CARDS

'You authorise us to make payments due to us under this agreement from current or savings accounts you have
with us or Lloyds TSB Scotland plc (including joint accounts) if you don’t pay them on time yourself. Unless we
believe the funds from the current or savings account will be moved before payments are made, we will give
you at least 7 days advance warning before we do this'

xplora

exel1966 wrote: »

That's incorrect !! They CAN and will if they deem it necessary ! To take money for one overdue bill seems very unlikely unless it is a regular occurrence or there are other circumstances dictating this.


STANDARD CONDITIONS YOU'LL FIND ON MOST BANK OPERATED CARDS

'You authorise us to make payments due to us under this agreement from current or savings accounts you have
with us or Lloyds TSB Scotland plc (including joint accounts) if you don’t pay them on time yourself. Unless we
believe the funds from the current or savings account will be moved before payments are made, we will give
you at least 7 days advance warning before we do this'

I have never stated that my statement is correct because i have mentioned ' based on my experience ' by giving an example of my friend in HSBC.

iceicebaby

They are allowed to do this its called the rght of offset and will be in their terms and conditions

shezzy

so will they take it out of an overdraft if you have no money in the account???

shezzy

iceicebaby

Up to your overdraft limit, yes

YorkshireBoy

xplora wrote: »

I have never stated that my statement is correct because i have mentioned ' based on my experience ' by giving an example of my friend in HSBC.

Your friend was very lucky.

From the HSBC Personal Banking Terms And Conditions...

6. Miscellaneous

6.1 If any accounts you hold with us are in credit, we may use any of them to reduce or repay any amounts you owe on other accounts you hold with us...

YorkshireBoy

iceicebaby wrote: »

Up to your overdraft limit, yes

I wouldn't think they'd do this. After all, what would they gain? You'd still owe them the same amount of money.

See the HSBC T&C's above...the other account has to be "in credit".