Setting off

cyclistbruce

I've recently started a Debt Management Plan. I have personal accounts and a sole trader account with Lloyds. I've transferred all my personal accounts to the Co-Op. But still have the business sole trader account with Lloyds.

I'm concerned that Lloyds would be able to transfer funds from my sole trader account to pay off the overdrafts in my personal accounts. Is this the case?

boo_star

cyclistbruce wrote: »

I've recently started a Debt Management Plan. I have personal accounts and a sole trader account with Lloyds. I've transferred all my personal accounts to the Co-Op. But still have the business sole trader account with Lloyds.

I'm concerned that Lloyds would be able to transfer funds from my sole trader account to pay off the overdrafts in my personal accounts. Is this the case?

They probably can, you need to move that business account to someone else ASAP.

YorkshireBoy

cyclistbruce wrote: »

I've recently started a Debt Management Plan. I have personal accounts and a sole trader account with Lloyds. I've transferred all my personal accounts to the Co-Op. But still have the business sole trader account with Lloyds.

I'm concerned that Lloyds would be able to transfer funds from my sole trader account to pay off the overdrafts in my personal accounts. Is this the case?

The first thing that springs to mind is "is it worth the risk?"

I've no experience with business banking, but the T&Cs of such accounts with Lloyds seem pretty clear to me...

17.1 If you owe us money on an account (including a loan, credit card, mortgage, current, savings or other account) we may use money in any of your other accounts with us to reduce or repay (by way of set off or otherwise) what you owe us without telling you before we do so.


http://www.lloydsbank.com/assets-business-banking/pdfs/BB62571_0414_v3_Web.pdf?srnum=3

You must be familiar with these T&Cs though, being as you're the one with the account?

I'm not sure whether the fact you're in a DMP has any bearing on 'right of offset'. Maybe the people who dealt with it could advise?

Something else that you may wish to research is any BCOBS guidance on the subject.

Or, perhaps you should simply switch it...if you can?