Paying overdraft

[horselady]

How much can one bank "interfere" with a person's money that they have in another bank? For example, if you had a good sum of money in one bank and wrote out one of their cheques to clear an overdraft with another bank, to whom you still owed balance for loan, credit card, could that bank ask the other bank how much you had in the account and find a way of getting at it, in the same way they can take money from your savings account to pay for a loan payment with them. Sorry because I realise this sounds really garbled, my friend has had her pension lump sum paid into one bank and is convinced that if she writes one of their cheques and pays into her other bank, will somehow think "ah-she has money we'll have that" They have refused to take the amount in cash to clear the overdraft by the way

[dzug]

Don't really understand - she has the money, why not pay off the debts?

[horselady]

She will be doing that, that's why she is starting with her largest debt, the overdraft. She will then pay others off in the order that she chooses to, what she doesn't want is any bank deciding for her that they should have first priority.

[ummmm]

They have refused for her to pay off her over draft?

[annie0000]

That would be essntially like Tesco charging you for shopping in sainsburys. If the banks are separate (and nowadays, with them all being amalgamated, that is not obvious) then they cannot look at your accounts over both. If they are now joined, they may be able to check what is in both, but I am fairly sure that they would not be able to transfer money between them.

[horselady]

Thanks annie-that's what I think (the 2 banks involved are Lloyds and Nationwide by the way)

ummmm-they have refused to take cash in such a large amount, something to do with rules regarding money laundering.

[ummmm]

I thought she wrote a cheque?

[horselady]

She went to Lloyds, said she wanted to clear her o/d and downgrade her account now that she had retired. They asked how she wanted to clear it, she then said she would bring in cash and then they said that they would refuse to accept that amount in cash because it could potentially be the proceeds of a crime!!! Now she can only write a cheque from the other bank and that's what's bothering her.

[ummmm]

Write a cheque then. The bank can at least see what account it has came from. Doesn't mean they can get access to that account.

[horselady]

Thanks all-told you it was garbled but I wanted to check that my thoughts were right.

[R1Geezer]

O work in a bank and belive me it would be the end of civilisation if they could access accounts across banks. When a cheque is written the receiver of the cheque has no idea of the balance on the account it is drawn on all they have is a yes or no as to whether it clears, end of. She could also do it with interent banking.

[Skyline D]

Nationwide isn't a bank anyway to be picky. It's a Building Society and proud of it.

Lloyds will take cash if they can be assured of the source of the money. They won't take cash over a certain value (I think it's 10,000 Euros, whatever that converts to now) unless they have a verifiable source though.

[Prudie]

I know Barclays and Barclaycard must have been originally related but I thought they were separate now but in my case B'Card chased me about 5 years down the line for a smallish debt I'd forgotten about (I had cut my card up) by sending me a letter out of the blue saying we now see from your Barclays current account that you are in a financial position to pay off this debt so I obliged. Just making the point that my current account details were accessed.

[bushbaby_de]

If accounts are held by the same provided they can see (and transfer) balances to cover debts also held with them. This is not true if the credit and debt are held by completely separate banks.