Lloyds Bank Right to Set-Off

andy_stay

I have debt in arrears with Halifax credit card and Halifax overdraft. I also have current account with Lloyds bank, where I have some money to pay for rent and bills. Can Halifax use ''right to set-off' and take money from Lloyds account?

I read terms and conditions of Lloyds, which says
In addition, we can in the same way (unless prevented by insolvency law) use money you have
in any of your accounts with us to reduce or repay any money you owe to another group company (with the Lloyds Bank or Scottish Widows name)

Halifax bank has separate license than Lloyds bank, but Halifax falls under Lloyds banking group.

sourcrates

Hi,

Yes they are connected, and yes, they could take money from any other account, within the same group, in your name, using the right of set off.

There are certain rules they must follow, but these tend to be a little vague in some areas.

Best advice is don't bank where you have debts.

andy_stay

sourcrates wrote: »

Hi,

Yes they are connected, and yes, they could take money from any other account, within the same group, in your name, using the right of set off.

There are certain rules they must follow, but these tend to be a little vague in some areas.

Best advice is don't bank where you have debts.

The T&C as mentioned in my original post says they will only use right to set-off for Lloyds bank and Scottish Widow. These are just 2 brands under LBG and don't include Halifax. But I agree its best to use another bank just to be on safe side. Thanks

sourcrates

andy_stay wrote: »

. But I agree its best to use another bank just to be on safe side. Thanks

Best to just remove the potential problem from the equation by opening a new basic bank account, then it’s one less thing to worry about.