Right to set off mastercard CC debt against other accounts - TSB/ Lloyds

[mrindebt]

Hi

 

I defaulted on my LloydsTSB Mastercard back in late 2008 (I lost my job of 15 years a few months before),

 

I paid the minimum £1.00 a month until summer 2010 when my debt was passed on to Robinson Way

and i've continued to pay them £1.00 a month and still do.

 

During this time I was diagnosed with Parkinsons and Type1 Diabetes and a few other things (Leg amputated) and am surviving on only sickness benefit.

 

My local LloydsTSB which is literally about 50 feet from my front door has recently been converted to a TSB branch

 

I decided to take the plunge and apply for their basic account because i'm tiring of travelling into town

to the nearest NatWest atm where i've banked since I left LloydsTSB or the nearest Post Office to draw my money out.

 

This is a question about the right to set off between accounts.

 

Can Lloyds raid my TSB account to pay towards my old credit card debt?

 

Do they even care about the debt anymore since they passed it on to someone else?

 

According to page 5 of these recent Lloyds/TSB transfer terms and conditions

they have waived the right to set-off between the two 'new' banks even while they both remain within the same banking group

 

- and next summer TSB should be entirely out of Lloyds Banking Group altogether when it is floated off.

 

Am I reading this correctly or should I still use NatWest for my benefit payments at least until TSB is totally independent.

 

Thanks for reading.

[maroondevo52]

Hello and Welcome mrindebt,

 

Sorry to read things have not been working out too well for you over the past years, I'd be very wary of them off-setting, I certainly would not put it past them.

 

Did you have any PPI with the card or charges levied against it.

 

Regards,

 

Scott.

[mrindebt]

Hi, thanks - no PPI or anything.

 

I too find it difficult to believe they wont be tempted to off-set

but in their recent T&C it clearly states(imo) they wont.

 

I forgot to ask

- Do debts passed on to collectors now belong completely to the new owners (Robway)

or are the original holders (Lloyds) still lurking in the shadows behind them ready to pounce

when silly fools like me sneak their way back to them a few years later via TSB?

[dx100uk]

firstly.

 

you need to get your cra file [see below]

 

and see whom is listed as the owner of the debt.

 

have you got ALL the statements?

 

if not i'd get them via an sar via Lloyds/tsb.

 

as for the offset

 

i'd not trust them either

though like you, I don't think they can.

 

dx

[aburobert]

A read of this thread may prove useful:

 

http://www.consumeractiongroup.co.uk/forum/showthread.php?260099

[mrindebt]

Thank you for the replies.

 

I am not allowed to link you to the relevent part of the Lloyds/TSB transfer T&C which were published recently but I can paste it below -

 

The right to use money between accounts - known as ‘set-off.’

 

There are some circumstances when we have the right to use money you have

deposited with us in a current or savings account against a debt you also have with

us, such as a credit card, loan or overdraft.

 

This is known as ‘set-off.’ We also currently have the right to set-off against money you

have with Lloyds TSB Scotland and vice versa. Once TSB is a separate bank, we

will no longer have the right to use money you have in your Lloyds TSB account to pay

money you owe TSB and vice versa. We will only be able to use our right of set-off

between accounts you hold with Lloyds TSB.

 

 

I should be safe to get my benefit payments directed to my new TSB account based on the above but just to be on the safe side I think i'll keep them getting sent to my NatWest account for now until TSB becomes completely independent from Lloyds next year.

[citizenB]

If the debt has been assigned/sold to a 3rd party, there should be no right of set off anyway.

 

You say that is now with Robinson way. Is this just for collection purposes or have you received a Notice of Assignment to say that RW now own the account ?

[mrindebt]

If the debt has been assigned/sold to a 3rd party, there should be no right of set off anyway.

 

You say that is now with Robinson way. Is this just for collection purposes or have you received a Notice of Assignment to say that RW now own the account ?

 

I'm not sure about Notice of Assignment but I have copies of my statutory credit reports from both Experian and Equifax which I ordered in June this year - both of them list CL Finance and Cabot as the holders of my two other credit card debts (Originally with Barclays and Halifax respectively) which I also defaulted on in 2008 as well but it still shows LloydsTSB as the holder of my Lloyds debt - no mention anywhere of Robinson Way.

[dx100uk]

if loyds are listed as the owner then end of, robbers way can go...

 

as for the other two

 

have you cca'd them if you are still paying them blindly?

 

dx

[sar2004]

Hi - appreciate this post is old now but

 

 

wondered how you got on.

 

 

I am in exactly the same position more or less.

 

 

Have a defaulted account with TSB and a basic account with Lloyds.

 

 

To save me opening another account I want to put all of my credits into the Lloyds account and clear the TSB OD as soon as I can.

 

 

However, worried they will offset between accounts leaving me with nothing to live on.

 

 

Your post seems to suggest this isn't possible so I just thought I would check and see how you got on x

[dx100uk]

they can and will offset don't risk it

 

 

always put your money in a parachute account

 

 

where no-one you owe to can get their hands on it.

 

 

dx

[sar2004]

Done - natwest account opened.