Halifax Debt.

Mart34

I had an Halifax Utimate reward account, with Overdraft. I fell behind with repayments to this as I fell into financial difficulties.

This debt is being repayed back via a debt managment plan (i am aware of fee's before someone brings that up)

The question I would like answered tho, Although I have a debt on that particular account, I also have a Card Cash account, which as I'm sure your all aware is a basic account. I haven't used this account since I fell behind with the overdraft, If I start using this basic account again can Halifax take funds from the account as and when they like to pay clear my overdraft, or are the bank limited to accepting payment from my debt management plan

Thanks in advance for any advice and assistance.

pmduk

Yes, they have a right of set off, which they can use against any other account. Whether they would do it is another matter, but why take the risk?

pinkdalek

Has the debt now been moved on to a 3rd party debt management company or is it on an arrangement with the bank?

If it is with a 3rd party company, in other words the bank has sold it on, then you will be fine using your Cardcash account, as the bank has sold on the debt.

If it is being managed within the bank still then it would be more advisable to open an account elsewhere with a bank not associated with them. This way they cannot know of what your day to day financial situation is like and also your monies would be safe from them.

To be honest if you are on an arrangement with the bank and you stick to the terms of that arrangement they will not offset monies from other accounts. But to make life easier for you it would be best to bank elsewhere.