Right of Offset (ISA)

ChopinonaBudget

Right ho, I'm sorting out my finances (again) and am saving for tax bills etc so I don't have to put them on my credit card. I currently have them (and some savings for yearly spends and some other odds and sods) in a low interest savings account but need to shift some of this ASAP as I've just realised I've done something really dumb and used a savings account with Nationwide whom I owe £5.5K on credit cards to.

I vaguely remember reading somewhere that ISAs are safe from Offsetting, but can anybody confirm this? I've got multiple credit cards with many different banks so it would be a lot easier if I didn't have to muck about with yet another bank, and I really like Nationwide's customer service and their internet banking system.

I only have a couple of hundred saved at the moment, so it's not a big deal, but I need to shift this ASAP before it gets any bigger.

Thanks

happy_bunny_2

If your card accounts are up to date, then offsetting doesn't apply, I believe. Or are they not up to date?

ChopinonaBudget

Thanks happy they are indeed up to date, it looks like I misunderstood the whole Offset Regs thing though! I was under the impression banks could offset at will, whether a debtor was defaulting or had always paid off the minimum balance? Have I got the wrong end of the stick? I haven't defaulted in years, so if I've got this wrong, then I'm safe wherever I bank...

happy_bunny_2

ChopinonaBudget wrote: »

Thanks happy they are indeed up to date, it looks like I misunderstood the whole Offset Regs thing though! I was under the impression banks could offset at will, whether a debtor was defaulting or had always paid off the minimum balance? Have I got the wrong end of the stick? I haven't defaulted in years, so if I've got this wrong, then I'm safe wherever I bank...

If you ever defaulted with Nationwide and didn't settle with them, they can still help themselves.

I haven't read the offsetting rules, but would seem harsh if they could just take your savings to cover an account with a credit agreement that has not been broken.

moohound

I have always wondered about this, can they take the full balance owed or just the amount that is overdue?

ChopinonaBudget

Brilliant thanks! I'll have a proper read through of them again later and see what I can work out I've never defaulted with Nationwide. The daft thing is I have a current account with them so I'm already on sticky ground if they ever want to offset, but they offered me a 0% credit card at coincidentally the exact point one of my others was running out of its deal, so I switched credit cards to them after swearing blind I would never bank with a creditor! I have very little in the current account though, and dip into my overdraft frequently as my income fluctuates (the most I ever have is £800 and that's just before the rent goes out).


It's a minefield out there...

happy_bunny_2

Yep. If they call in your overdraft and you can't pay within the usual 30 days, they can help themselves to your savings. They can in sometimes just take it without giving you chance to move the savings.

ChopinonaBudget

Oh balls. Well hopefully my overdraft will be clear fairly soon; I only use it sporadically now so it shouldn't be too long before I don't need it at all any more.

happy_bunny_2

As long as they have no reason to call in the OD you should be fine

ChopinonaBudget

I'll keep my fingers crossed and my account as much in the black as possible then, Happy!
Thanks

happy_bunny_2

RBS offset £0.01p from my OHs current account once. The letter they sent telling them must have cost more than that. Lol