Thoughts on Nationwide / Virgin money merger

Boabyfromcraiglang

Hi,

I am currently managing my debt via a DMP. One of the debts is to a virgin money credit card. My salary is paid in to a nationwide current account. My wife and I also have a joint account with nationwide that we use for our day to day spending.

Now I know that nationwide said they wouldn't enforce their right of set off on virgin for the first year of the merger (which we are still in).

What are thoughts on what I should do after the year? Also can a right of set off be applied to a joint account? The debt is solely in my name?

Thanks

sourcrates

Basic rule of thumb is, never bank where you have bad debts.

Which is good advice, and removes any possibility of them simply helping themselves to what you owe them.

Set off only applies to accounts in the same name as the debtor, joint accounts cannot be touched, single accounts in your name can, so you have been warned lol.

ManyWays

It is pretty rare for a bank to exercise set off rights and I would be really surprised if Nationwide does in this situation.

But much more common is for a bank to close your account. The safe thing is to move to a different bank for your personal account. I don't think a joint account would be affected.

How many of your debts have defaulted? I think this is a DAS? And have you got going on affordability complaints?

Boabyfromcraiglang

Hi it is a das but my understanding was this is effectively a regulated dmp. But I just can't seem to get a clear answer on whether I will have to give up my nationwide current account.

Only a few accounts have defaulted. One of which is the virgin credit card. Does that make a difference?

Thanks

Rob5342

To be on the safe side I'd get your salary paid into your joint account or open another account with another bank to get it paid into, Monzo and Starling are very good. You don't have to give up your Nationwide account, just don't keep any money in it while you owe Nationwide/Virgin anything.

horsewithnoname

Zopa is good and you get 2% interest on their current account (called biscuit for whatever reason?)

Boabyfromcraiglang

Thanks but they are one of my creditors unfortunately

Boabyfromcraiglang

My debt has since been sold to Lowell. Does this mean I know longer have a debt to Virgin / Nationwide and therefore the right of set off would no longer exist anyway?