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  • FIRST POST
    • Gerrymouse
    • By Gerrymouse 7th Feb 18, 2:25 PM
    • 39Posts
    • 8Thanks
    Gerrymouse
    Can you switch banks if u have outstanding loans
    • #1
    • 7th Feb 18, 2:25 PM
    Can you switch banks if u have outstanding loans 7th Feb 18 at 2:25 PM
    I want to leave Halifax due to the crippling new overdraft fees so plan to use my bonus in March to clear overdraft and then move to another bank.

    I have one loan with them and a very old credit card which the interest rate is frozen at 19% APR. I cannot repay either in the immediate future.

    My question is this, if I move bank accounts and direct debits etc they will know, would they then have the right to call in the loan and credit card repayment in full? I assume there are pages of consumer agreements I will need to read but hoping someone on here will know the answer very quickly.

    thanks everyone.
Page 1
    • Gary_Dexter
    • By Gary_Dexter 7th Feb 18, 4:37 PM
    • 945 Posts
    • 523 Thanks
    Gary_Dexter
    • #2
    • 7th Feb 18, 4:37 PM
    • #2
    • 7th Feb 18, 4:37 PM
    Have you asked them?

    Do you have any special rates on the loan or CC for also banking with them?
    • Flobberchops
    • By Flobberchops 7th Feb 18, 6:51 PM
    • 704 Posts
    • 509 Thanks
    Flobberchops
    • #3
    • 7th Feb 18, 6:51 PM
    • #3
    • 7th Feb 18, 6:51 PM
    I don't see why that would be a problem. Loans are a different banking product to current accounts so shoudln't be linked (unless there's some specific T+C that says they are in this case). Switching with an overdraft in place would probably be a bigger hurdle.
    I work for a UK bank, but any comments made on this forum are solely my personal opinion. Caveat Emptor!
    • Anthorn
    • By Anthorn 7th Feb 18, 6:53 PM
    • 3,574 Posts
    • 924 Thanks
    Anthorn
    • #4
    • 7th Feb 18, 6:53 PM
    • #4
    • 7th Feb 18, 6:53 PM
    I want to leave Halifax due to the crippling new overdraft fees so plan to use my bonus in March to clear overdraft and then move to another bank.

    I have one loan with them and a very old credit card which the interest rate is frozen at 19% APR. I cannot repay either in the immediate future.

    My question is this, if I move bank accounts and direct debits etc they will know, would they then have the right to call in the loan and credit card repayment in full? I assume there are pages of consumer agreements I will need to read but hoping someone on here will know the answer very quickly.

    thanks everyone.
    Originally posted by Gerrymouse
    Of course the bank will know that you've switched and of course the bank will recall full payment if you default on the payments and any special deal you got for banking with them will end.

    The way to go and I don't personally advocate this, is not to switch but to get a new current account, have income paid into that new account and inform DD payees of the new bank account. Then when you have your new bank account and your income is secure you can argue with your by now previous bank over paying off your debt. Doubtless they will demand full repayment and will default you if your don't pay and that will affect your credit history but that is unlikely to affect the new current account you already have.
    • lewishardwick
    • By lewishardwick 7th Feb 18, 7:04 PM
    • 535 Posts
    • 669 Thanks
    lewishardwick
    • #5
    • 7th Feb 18, 7:04 PM
    • #5
    • 7th Feb 18, 7:04 PM
    I had multiple accounts with Lloyds; 2x Credit Card, Loan, and 2x Current Account.

    Switched to Nationwide using the switch service.

    The only one closed was the Current Account I switched from.

    No issues from Lloyds at all. No demand for repaying loans, CCs etc.
    • YorkshireBoy
    • By YorkshireBoy 7th Feb 18, 7:07 PM
    • 30,136 Posts
    • 17,987 Thanks
    YorkshireBoy
    • #6
    • 7th Feb 18, 7:07 PM
    • #6
    • 7th Feb 18, 7:07 PM
    My question is this, if I move bank accounts and direct debits etc they will know, would they then have the right to call in the loan and credit card repayment in full? I assume there are pages of consumer agreements I will need to read but hoping someone on here will know the answer very quickly.
    Originally posted by Gerrymouse
    The credit card debt may only be called in "on demand" for 4 main reasons. These are detailed in section B9 of your credit card's T&Cs...

    https://www.halifax.co.uk/creditcards/help-guidance/terms-and-conditions/balance-transfers-and-purchases/

    If you're really too busy to read even one whole section, just go straight to the last paragraph!

    I'd assume your loan has a similar clause, but you should really find time to check.

    Re the loan payments...if these come from your Halifax current account you should check they are Direct Debits and not Direct Transfers, because Direct Transfers may not be moved via the CASS.
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