"Lloyds Credit Card Payment" for Halifax Mastercard? From Savings Account?

Jlawson118

My mum banks with Halifax, as well as she has one or two savings accounts with them. She previously had a credit card with them that she is still paying off. I think it was the Halifax One card.

She's started saving up recently in her savings account, and she logged in yesterday to find that £21 was missing from her instant saver, scheduled to be removed on January 23rd (This was the 21st when we saw) and the description was "Lloyds Credit Card" or something along those lines. No other description, just that.
Whilst on hold to the Fraud Department, I told her Lloyds own Halifax and asked if she still did have a credit card and she explained she did and she's been paying it off by herself opposed to direct debits, although due to Christmas, she didn't pay it this time round. Halifax then explained that it just came out of the Instant Saver for that credit card. She looked at previous payments she's made herself and they just say "Halifax Mastercard."

This does seem a little dodgy though. If that card is set up to be paid by direct debit, then shouldn't it have come out of her current account? And been titled Halifax Mastercard? I don't understand how Halifax can remove something from her savings account rather than her current?

She does have a card on this savings account, but there is no CVV on the back..

Has anybody else experienced this?

Rich7111

Sounds like they have exercised their right to offset, (they are allowed) but really it's a naughty trick which really should be made illegal. Your mum can call them, explain the money is for bills/rent etc, they should refund it, but then will ask her to bring the account up to date. Get your money to put money elsewhere whilst she's in arrears.

YorkshireBoy

If she's been making manual payments for at least 13 months or so the DDI has likely lapsed under the dormancy rules.

If she's prone to forgetfulness, maybe she should just let the DD collect, rather than intervening every month?

If a DD has collected during 2016, were there sufficient funds in the current account on the payment due date?

YorkshireBoy

Rich7111 wrote: »

Your mum can call them, explain the money is for bills/rent etc, they should refund it

I might be out of touch, but don't you have to exercise 'first right of appropriation' (usually to benefit payments) BEFORE the money arrives in the account?

Nasqueron

Rich7111 wrote: »

Sounds like they have exercised their right to offset, (they are allowed) but really it's a naughty trick which really should be made illegal. Your mum can call them, explain the money is for bills/rent etc, they should refund it, but then will ask her to bring the account up to date. Get your money to put money elsewhere whilst she's in arrears.

OP said the mum is in arrears but that the money was being used for savings, not for bills etc. If she's not paying her debt (missed payment) and the money is not being used for bills but rather put in a savings account, is this not the offset being used correctly?

PeacefulWaters

A bank is meant to advise the customer of their intention to use ROSO before they apply it.

bengal-stripe

PeacefulWaters wrote: »

A bank is meant to advise the customer of their intention to use ROSO before they apply it.

But the bank did advise the account holder in advance:

Jlawson118 wrote: »

.....£21 was missing from her instant saver, scheduled to be removed on January 23rd (This was the 21st when we saw)

System

There is no right of set off between Lloyds and Halifax as they aren't the same bank.

PeacefulWaters

Heng_Leng wrote: »

There is no right of set off between Lloyds and Halifax as they aren't the same bank.

True (although the T&Cs allow for it they have a policy of not applying it across brands - and that includes BoS to Halifax within the same banking licence - and it's highly likely to be looked at unfavourably by FOS and FCA).

System

PeacefulWaters wrote: »

True (although the T&Cs allow for it they have a policy of not applying it across brands - and that includes BoS to Halifax within the same banking licence - and it's highly likely to be looked at unfavourably by FOS and FCA).

I've never seen it any T&Cs - having just a quick scan of the Halifax Clarity T&Cs, the reference to set off rights says 'us' which is defined at the start as Bank of Scotland plc (this would obviously exclude Lloyds Bank plc)

I doubt, such a term would even be enforceable, in a consumer contract.

PeacefulWaters

Heng_Leng wrote: »

I've never seen it any T&Cs - having just a quick scan of the Halifax Clarity T&Cs, the reference to set off rights says 'us' which is defined at the start as Bank of Scotland plc (this would obviously exclude Lloyds Bank plc)

It was definitely in all LBG current account and savings account conditions from 2009. They've since added detail clearly differentiating between LBG and the specific banking licence - so my post is incorrect.

I doubt, such a term would even be enforceable, in a consumer contract.

Indeed.