www.iva.co.uk

I have a joint account with my wife at the Halifax. We also have our mortgage with the Halifax. Both my wife and I are looking at an IVA. Are the Halifax entitled to apply offset to our joint account to recoup the amount I owe them on a Credit Card. The card is in my name. Also have any of the experts ever came across the situation where Halifax have operated this method. The account has no OD facility and we are not behind with any payments on the mortgage.

Hi
Yes, the Halifax could plunder your joint account to fund the credit card payment.
You should change your account to a non creditor as soon as possible.
Regards

If you have one account in credit and the other in debit (ie overdrawn) then most banks will have the automatic right of set off - so I would suggest that open up a new current account with a bank to whom you do not owe any money, and transfer any balance you are currently holding over to enable you to be able to carry on paying essential bills.

Will this position exist once the IVA has been set up. Halifax have always been good with us and once the IVA was in place then we would like to continue banking with them so that in 4 years time we are still good standing for the possible remortgage as they will see that a sensible banking approach has been maintained. Also as the account is joint however the credit card is in my name would they still be able to attach the account as realistically they could be taking my wifes money and not mine.

They should not affect offset after an IVA has been accepted, but I would get them to confirm that in writing to be sure.

Hi
Once the IVA is in place then banks can't operate the right of offset.
You may find that the Halifax will close your account once your card goes onto the IVA, with an IVA on your record in four years time I don't think that you will be in good standing with them, no matter how you have operated your account.
Do you have an overdraft on the account ?
Regards

Andy...No there is no OD on the account. But even still can they attach an account in joints names as the credit card is not joint and several

Hi
Yes, even if the account is joint they can use the funds to repay a sole debt under the right of offset.
There have been reports of banks plundering childrens accounts if the account has a parent attached that has a debt with the bank
Play safe and move accounts
Regards

Halifax did that with my account.

We had a joint loan with them and there was about £20,000 left to pay when we got into trouble. I had a savings account with them into which my family allowance was paid.

I went in to close this account and withdraw the grand sum of £34 which was all that was in there, and they had taken that out to offset against the debt.