Right of Offset

[Fred Bassett]

Hi all,

I will soon be in a position to pay off a large chunk of my mortgage which is a joint one with my Wife.

The potential problem I have is that I have a disputed credit card account also with Lloyds on which I have not paid anything for about 2 years while I wait for them to fulfil their obligations under the CCA to provide me with a true copy of the executed credit card agreement.

My question is this - could Lloyds use any money I pay towards my mortgage to pay off the credit card bill? If so, how could I get around this?

Thanks.

Regards.

Fred

[Amethyst]

Re: Right of Offset

If you make a payment to your mortgage I don't think they can offset anything t your credit card, although, what is the dispute with your credit card ? Would it not be beneficial to use the money to pay off the credit card (a negotiated full and final settlement off the back of them not having the CCA so basically what you have spent not the interest/charges and sort out your credit file) and the rest off your mortgage ?

[natweststaffmember]

Re: Right of Offset

Hi all,

I will soon be in a position to pay off a large chunk of my mortgage which is a joint one with my Wife.

The potential problem I have is that I have a disputed credit card account also with Lloyds on which I have not paid anything for about 2 years while I wait for them to fulfil their obligations under the CCA to provide me with a true copy of the executed credit card agreement.

My question is this - could Lloyds use any money I pay towards my mortgage to pay off the credit card bill? If so, how could I get around this?

Thanks.

Regards.

Fred

Fred, it's called the right of set off and here are the rules around it.
http://www.financial-ombudsman.org.u.../40_setoff.htm

[Fred Bassett]

Re: Right of Offset

Thanks for that, I've had a read but can't really see anything applicable to my case here.

Regards.

Fred

[natweststaffmember]

Re: Right of Offset

nor could I which is why I don't think any overpayment on the mortgage can then be transferred to a disputed debt.

[Fred Bassett]

Re: Right of Offset

nor could I which is why I don't think any overpayment on the mortgage can then be transferred to a disputed debt.

It wouldn't be an overpayment. I'm just in a position where shortly I will be able to pay off about 75% of my mortgage. I can't use it to pay off a credit card debt for reasons I can't explain. I just want to make sure Lloyds can't do the same thing.

Regards.

Fred

[natweststaffmember]

Re: Right of Offset

It wouldn't be an overpayment. I'm just in a position where shortly I will be able to pay off about 75% of my mortgage. I can't use it to pay off a credit card debt for reasons I can't explain. I just want to make sure Lloyds can't do the same thing.

Regards.

Fred

Providing the mortgage is not an something like Woolwich Open plan or The One account then the straight forward answer is no.

[Fred Bassett]

Re: Right of Offset

Providing the mortgage is not an something like Woolwich Open plan or The One account then the straight forward answer is no.

No, it's a straightforward repayment mortgage.

Fred