Banking within same group

[1NightInIbiza]

Just wondering about banking within the same group that have defaulted you.

I know there is the right for the same company to set-off/nab funds from other accounts if you are in arrears. Does that apply to the group? And would it apply at all after a default?

I ask because Nationwide have defaulted me, but left another current account open. I transferred a penny in and straight back out again and it works, so seems to be no block at all on the account. Legally I'm guessing they could still grab any money that was paid into it though? Just confused as to why they have left that one open!

I had the defaulted one and some others - the defaulted one and 1 other have disappeared, but not this one!

[Never-In-Doubt]

Re: Banking within same group

Sorry for the delay. Missed this!

A company/bank can utilise RoSo with the limitation periods afterwhich they're likely to be told off by the FOS.

To answer your question though, typically you should not use an account within the same group that you owe money to, ie Halifax / Lloyds means avoiding BOS for instance. They may well after the default period (6yrs) allow you to open new products based on historical data they hold so in theory the bank *could* still hold data about you for 12+ years after default date albeit, RoSo couldn't be fulfilled after SB.

Its usual that that they empty the live account upon large transactions, salary etc. Best be safe & not risk it. Look at Enforcer's thread about Barclays raiding his account....

[ATW]

Re: Banking within same group

I doubt they will take 1p but try sticking a couple of grand in there and see what happens....

[1NightInIbiza]

Re: Banking within same group

Thank you, yea leaving it is the best way, so it's possible, but not recommended!

Would they be allowed to hold data about you once the default period has expired? Isn't the limit for data retention 6 years? Or does the fact you owe them money mean they'll keep your data indefinitely?

[Never-In-Doubt]

Re: Banking within same group

A company can (as per DPA1998) retain data for as long as they feel necessary; check the 5th principle as an example. So to you, a bank can retain data for as long as they feel they need to retain it for.

[Never-In-Doubt]

Re: Banking within same group

The norm is a couple of years after account closure. If defaulted it could be 10 years after default date or even +6yrs after default drop off date (reason for continual processing after so long could be, for example, business risk).

[1NightInIbiza]

Re: Banking within same group

Ahhh that makes sense

So, potentially, any kind of loan/mortgage etc after defaults drop off could be considered.

Although given that they still hold internal data on the previous default, maybe not!

In 6 years hopefully I'd be in a hell of a lot better position, but I certainly wouldn't blame any of the banks involved at the moment for not taking me! Santander it is!

[Never-In-Doubt]

Re: Banking within same group

Well I owed hbos (Halifax) and after 6yrs applied to BOS and got a current account with £1700 o/d. So it doesn't always become a barrier. However best advice is to give ample time for older defaulted accounts to get purged if you ever wanted to apply for a lot at the same group, ie loan / mortgage.

Yes on all applications you'll notice the form says they use a credit score, info from the CRA's & any internal records. It's those you need to watch out for. As the norm, I'd say that usually 3yrs after a default drops off you can be safe the bank won't link you to the old debt.