Lola girl UE diary...newbie!

[Never-In-Doubt]

Things change through time / the more hands it crosses. Time is a great way to see the errors build up

[Lola girl]

Right - fair enough. Just keep a watch and let us know if anything changes. Good luck.

Thanks Nid, this one was enforceable (although you did say it wasn’t a lawful response) so hopefully they carry on taking their time doing anything with it!

[Never-In-Doubt]

Right - fair enough. Just keep a watch and let us know if anything changes. Good luck.

[Lola girl]

Is it still with MBNA? When did you stop paying / default?

Yes still with them. Last paid August 18, defaulted March 19. Passed to moorcroft then wescot. Just receive the odd statement from MBNA otherwise nothing really.

[Never-In-Doubt]

Is it still with MBNA? When did you stop paying / default?

[Lola girl]

Hiya

Well they've not utilised RoSO in the last year or two since they joined the LBG have they? So it's a gamble, but you should be cautious.

So in your situation -

1. the kids accounts with Halifax are in your name = at risk of RoSO.

2. your personal Lloyds account = at risk of RoSO.

3. your MBNA card (debt) *cannot* edit, update or service any of the accounts under 1 & 2 above but they *will* (if they look) see that you hold accounts within the group.

4. ditto, Lloyds & Halifax *can* see you have an account with MBNA but won't know the status / debt / etc - they'll just see a list of brands and products held.

So if it was me, I'd move away from LBG in entirety. There's too much risk that MBNA will attempt to have LBG utilise RoSO.

Under £500 they don't bother. They tend to go for your current account once there's £500+ in there. They'll do it multiple times in any period too - it's not just a one-off.

All that being said, I now have 3 reward accounts with Halifax and cycle £1500 through all 3 and leave £500 in each to use on card payments so I get 3 x £5 each month. In 3+ years I've never encountered RoSO and back in the day, I think I was near £75k owed to HBOS! But I take the risk safe in the knowledge the worst I'd lose is just £1500 - but I have a CC with MBNA, Lloyds & Halifax so I'd just go and spend the same if they pulled that stunt.

In fairness in my case it was +15 years ago though.

Well I don’t have a great deal as a in there even on payday so hopefully they will just stay out of it. As a single parent with a mortgage and bills to pay I’d have a hardship claim straight in if they tried anyway! My daughter is learning to drive so will be using her money for a car after august using up that money. Fingers crossed they just sell it off!
lola x

[Never-In-Doubt]

Hiya

Well they've not utilised RoSO in the last year or two since they joined the LBG have they? So it's a gamble, but you should be cautious.

So in your situation -

1. the kids accounts with Halifax are in your name = at risk of RoSO.

2. your personal Lloyds account = at risk of RoSO.

3. your MBNA card (debt) *cannot* edit, update or service any of the accounts under 1 & 2 above but they *will* (if they look) see that you hold accounts within the group.

4. ditto, Lloyds & Halifax *can* see you have an account with MBNA but won't know the status / debt / etc - they'll just see a list of brands and products held.

So if it was me, I'd move away from LBG in entirety. There's too much risk that MBNA will attempt to have LBG utilise RoSO.

Under £500 they don't bother. They tend to go for your current account once there's £500+ in there. They'll do it multiple times in any period too - it's not just a one-off.

All that being said, I now have 3 reward accounts with Halifax and cycle £1500 through all 3 and leave £500 in each to use on card payments so I get 3 x £5 each month. In 3+ years I've never encountered RoSO and back in the day, I think I was near £75k owed to HBOS! But I take the risk safe in the knowledge the worst I'd lose is just £1500 - but I have a CC with MBNA, Lloyds & Halifax so I'd just go and spend the same if they pulled that stunt.

In fairness in my case it was +15 years ago though.

[Lola girl]

Although they're separate companies within the same group; this means they can't cross-brand match you. For instance MBNA systems will not allow access to your Lloyds accounts, and vice versa. That being said, they do have a management system that does show all accounts using a full search. Example, you apply for a credit card with Lloyds, Halifax, Bank of Scotland or MBNA - they'd see all accounts held with the group (LBG). This stops you breaching internal rules such as no more than 3 cards via the parent brand.

My point is, you should be fine however you should also be careful as they *can* utilise RoSO within the parent group as each individual product clearly allows for it.

My advice would be to get new banking out with the group. I've been stung with RoSO from the old HBOS Group and can confirm it does happen!

As MBNA don't offer current accounts they'll not see your Lloyds accounts however Lloyds staff may be able to see you have an account with MBNA on their systems. They won't be able to access it or service it but they'll see it exists.

They operate on a CRN (customer reference number) basis. That's where the link to all accounts originates. So again, Halifax could see your Lloyds accounts under your CRN but couldn't edit or view anything. They'd just see they exist. That's all.

So any review / underwriting / fraud or debt department could link and utilise RoSO at any point.

Thanks Niddy - that makes total sense. The current account is with Lloyds (don’t owe them anything) and the kids money (in my name till at least August) is with Halifax (don’t owe them either). So I think you are saying I ‘should’ be ok as MBNA shouldn’t be able to access any money I have going into either. I had some small amount of savings in Lloyds which I have moved to Santander just in case. Hopefully MBNA will sell this debt off soon anyway!

[Never-In-Doubt]

I have just read something saying that MBNA were taken under the Lloyds banking group in 2019. Has anyone else heard this?
My current account and bills account and my kids savers (in my name) are with Lloyds....thinking about the offset rules!

Although they're separate companies within the same group; this means they can't cross-brand match you. For instance MBNA systems will not allow access to your Lloyds accounts, and vice versa. That being said, they do have a management system that does show all accounts using a full search. Example, you apply for a credit card with Lloyds, Halifax, Bank of Scotland or MBNA - they'd see all accounts held with the group (LBG). This stops you breaching internal rules such as no more than 3 cards via the parent brand.

My point is, you should be fine however you should also be careful as they *can* utilise RoSO within the parent group as each individual product clearly allows for it.

My advice would be to get new banking out with the group. I've been stung with RoSO from the old HBOS Group and can confirm it does happen!

As MBNA don't offer current accounts they'll not see your Lloyds accounts however Lloyds staff may be able to see you have an account with MBNA on their systems. They won't be able to access it or service it but they'll see it exists.

They operate on a CRN (customer reference number) basis. That's where the link to all accounts originates. So again, Halifax could see your Lloyds accounts under your CRN but couldn't edit or view anything. They'd just see they exist. That's all.

So any review / underwriting / fraud or debt department could link and utilise RoSO at any point.

[Never-In-Doubt]

A bank cannot offset a child's money / anyone else's money. So if you owe a bank money but have a joint account - it's safe. If your kids or parents have an account - they're safe.

Of course if you have accounts in your name but put the children's money in there then they can take that as RoSO as it's in your name.

A bank, particularly LBG (HBOS) can *and does* utilise group RoSO - I had money in a BoS account snatched based on a debt to Halifax! I got my revenge but still.....

So Lloyds & MBNA can see other credit products held but they use different systems for servicing. So if you have an mbna credit card, they would not see your Lloyds bank / savers. They're two different legal entities and thus they use different systems entirely.

If it was Lloyds -> Halifax they'd see both, but only if they did a search or a review. If you had no lending they'd likely miss it.

[Warwick65]

I can’t move the kids savers as they are fixed for 2 years. I’d rather not leave my Lloyds accounts, but I have moved any spare money into Santander and will just leave my bill money. Hopefully they will sell the account on soon and it won’t be a problem. Wonder if it happens much in practice

Depending on the amount of money there is in them and the penalties for moving within the fixed term I personally would be cautious. Hopefully if they are running the MBNA book as a stand alone they will not notice.

[Lola girl]

Personally I would feel happier if my money was elsewhere. Not sure where else you have accounts but there are lots out there, internet only such as starling or Monzo, Metro who have branches across London and I know Solihull and Birmingham . I have my main account with Yorkshire/Clydesdale/ Virgin/B ( they do have an identity crisis).

@Niddy has posted he has many different current accounts to maximise benefits

I can’t move the kids savers as they are fixed for 2 years. I’d rather not leave my Lloyds accounts, but I have moved any spare money into Santander and will just leave my bill money. Hopefully they will sell the account on soon and it won’t be a problem. Wonder if it happens much in practice

[Warwick65]

Personally I would feel happier if my money was elsewhere. Not sure where else you have accounts but there are lots out there, internet only such as starling or Monzo, Metro who have branches across London and I know Solihull and Birmingham . I have my main account with Yorkshire/Clydesdale/ Virgin/B ( they do have an identity crisis).

@Niddy has posted he has many different current accounts to maximise benefits

[Lola girl]

Wonder if it’s likely they would use offset rule for the ‘wider’ banking group.

[The Tech Clerk]

Lloyds Banking Group has this week completed its £1.9 billion takeover of credit card firm MBNA, but customers of both will see "no changes whatsoever", according to the banking giant.2 Jun 2017 it happened