Do you think I need to change my bank account?

My creditors are barclaycard, MBNA, Virgin and PayPal. I’m hoping to start a DMP and my bank account is Halifax. Do you think I need to switch this? Thankyou 
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  • sourcrates
    sourcrates Posts: 28,805 Ambassador
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    Yes you do, MBNA are owned by Lloyds banking group, who also own the Halifax.

    Try Monzo or the Coop, there are others as well.
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  • Oh thanks for that. I have a Starling account, I’ll have my wages directed to that account instead. My mortgage is with Halifax, will that be an issue? 
  • fatbelly
    fatbelly Posts: 20,431 Forumite
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    The mainreason for changing bank is to avoid the right of set-off, which allows a creditor to pay itself from any savings you may have.

    A secondary reason may be to avoid a creditor knowing more about your circumstances than you care to reveal.

    The mortgage isn't a problem
  • Thankyou fatbelly. At present I have a bank of Scotland account and my wages are paid into this account. My husband and I also had a joint Hank of Scotland account. We each transfer an equal amount into the joint account each month and all our priority debts come off the joint account by DD, mortgage, insurances, tv licence etc. I have a spare starling account so I will contact my employer and have my wages redirected here but could my creditors still take money from the joint account we have? 
  • fatbelly
    fatbelly Posts: 20,431 Forumite
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    It's a theoretical right, not much used. 

    But it's easier to prevent it being used than argue it afterwards

    Yes a joint account would qualify

    https://www.moneysavingexpert.com/banking/setting-off/
  • Thankyou, I actually came across this 
  • fatbelly
    fatbelly Posts: 20,431 Forumite
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    As usual stepchange have arrived at a hopeful interpretation of the guidance under BCOBS 5.1.3

    Prevention is better than cure
  • hagler
    hagler Posts: 35 Forumite
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    hi everyone, just wondering if the op opens a new account using the banking switch can the old bank right of offset any money they are redirecting to the new account as sometimes can take a few weeks for employers to change bank details or will any redirected money also be safe once the switch goes through
  • fatbelly
    fatbelly Posts: 20,431 Forumite
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    They would be safe once the switch goes through.

    In practice it doesn't happen quickly and i've never seen it happen between mbna and halifax
  • freshstart2023
    freshstart2023 Posts: 59 Forumite
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    edited 12 August 2023 at 3:19PM
    My bank account is with bank of Scotland. Mortgage is with Halifax. My mistake in initial post. 

    This is probably a silly question but how do they actually offset? At what point can they intercept the funds? For example if I was to have my wages paid into the Starling account and transferred money from the Starling account into my bank of Scotland account, can they intercept it before it even hits the account? How does it actually work? I’m just curious. Thankyou 
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