Lloyds right to off set

ryan008

Hi, I have just switched my basic hsbc bank to a club Lloyds, however I had debt with Halifax around 9,000 on a loan which is probably 8/9 years old now I defaulted on it 7 years ago it went to Moorcroft which started paying low monthly amounts,  but 3 years ago I started a Iva and cancelled it within a month, haven’t heard anything since and no payments made. 

now I’m worrying Halifax are part of Lloyds would they use right to off set and take any money?

MattMattMattUK

ryan008 said:

Hi, I have just switched my basic hsbc bank to a club Lloyds, however I had debt with Halifax around 9,000 on a loan which is probably 8/9 years old now I defaulted on it 7 years ago it went to Moorcroft which started paying low monthly amounts,  but 3 years ago I started a Iva and cancelled it within a month, haven’t heard anything since and no payments made. 

now I’m worrying Halifax are part of Lloyds would they use right to off set and take any money?

Would they, no one can tell you, can they, yes. Personally I would not risk it. 

fatbelly

Assuming they still own the debt and it is live on their system, yes they could.

Whether they would I do not know.

You appear to have two choices: move your banking to somewhere sensible or mug up on the laws and guidance about offsetting

ryan008

Yeah probably will just make another account be on safe side then.

MyRealNameToo

ryan008 said:

Hi, I have just switched my basic hsbc bank to a club Lloyds, however I had debt with Halifax around 9,000 on a loan which is probably 8/9 years old now I defaulted on it 7 years ago it went to Moorcroft which started paying low monthly amounts,  but 3 years ago I started a Iva and cancelled it within a month, haven’t heard anything since and no payments made. 

now I’m worrying Halifax are part of Lloyds would they use right to off set and take any money?

Have you read the terms of the Lloyds account you just opened? You almost undoubtedly clicked a button to say you had. 

If they are allowed to claw money from your account would be in the terms of the account, likewise if other entities in the group can do so. 

ryan008

I shall have a look but I’ll just cancel it and go elsewhere saves the fuss.

[Deleted User]

ryan008 said:

Hi, I have just switched my basic hsbc bank to a club Lloyds, however I had debt with Halifax around 9,000 on a loan which is probably 8/9 years old now I defaulted on it 7 years ago it went to Moorcroft which started paying low monthly amounts,  but 3 years ago I started a Iva and cancelled it within a month, haven’t heard anything since and no payments made. 

now I’m worrying Halifax are part of Lloyds would they use right to off set and take any money?

Relevant parts of the Halifax T&Cs:

Section L – Can we take money from your account to pay off a debt you owe us? Unless a court or the law prevents it, we can take money from your account to reduce or pay off money you owe us. This could include money you owe under a credit card, mortgage, overdraft or other agreement.

Section A - We use ‘we, us, our’ in this agreement to mean Bank of Scotland plc. Halifax is a part of Bank of Scotland.

ryan008

Yes did come across this just im thinking the debt was sold to moor croft maybe 4 years ago now but need find paperwork and dont want to make contact as no communication or payment has been made, just frustrating trying get a good stable current account that i will get accepted for!

fatbelly

Moorcroft don't usually buy debts. They just act as debt collecters

ryan008

Ok, I’m just gunna use elsewhere 

[Deleted User]

ryan008 said:

Ok, I’m just gunna use elsewhere 

Probably a better option as they will be unlikely to offer you more than a basic account if you have outstanding debts with a group company - even if they're unable to set-off.