Lloyds TSB claims they have not paid out a single financial hardship claim!!!!!!

steve.j.bishop · 8 September 2009 at 12:17PM

Hi there all

First post so bare with me...

I've just had a conversation with the Customer Service team and the Charges team for my Lloyds account. Basically they have taken £2180 off of my since July 2007. I have, as directed by the great templates on this site, requested the list of charge list and subsequently requested the charges be refunded.

This morning I received a letter from them telling me that my overdraft facility would be withdrawn completely on 30th of September. I then called the customer services team and was told that "all overdraft facilities are calculated on a credit score system. If you do not meet the financial criteria you will not get the overdraft. For example if you are in financial difficulty".

This immediately made me think back to my claim for a refund. If they are saying I look like I'm in financial difficulty then should I not get my case examined claiming 'financial hardship'??

I then called the charges team and spoke to someone else. This is where it gets interesting... I asked "out of all the cases claiming financial hardship how many of them have been successful?" The answer I got was "NONE".
I then asked "how many of those that had gone to small claims court where successful" The answer I got was "We can still get them placed on hold".

I then continued and said that I will speak to yet another department regarding the imminent removal of my overdraft facility and if not satisfied with there answer want to know how to stop the them charging me more money. I was told that the only way to do this is to stop using the account. If I do this apparently they cannot keep charging me for being over drawn. So I will open a new account elsewhere (pending how the call with the next team goes) and re-direct my wages etc into the new account. I'll then await the result of the test case. Does this sound like a reasonable course of action?

I took the liberty of making sure both of these calls were recorded :-)

So. My question to Martin, et al

Is it true Lloyds have not paid a single claim?
Are they really able to place on hold those cases going through court?
When do we (as consumers) say "enough is enough" and resort to storing money back in our mattresses?

Thanks for reading. Comments/suggestions are more than welcome....well sensible ones anyway.

Best Regards

Steve

[Deleted User] · 8 September 2009 at 12:37PM

This is exactly what I was referring to in my thread:

http://forums.moneysavingexpert.com/showthread.html?t=1930335&page=2

I too was completely confused by the terminology on MSE and you seem to have fallen into the same trap.

Claiming bank charges back under 'financial hardship' is really just 'claiming financial hardship' and hoping they refund the charges as part of the remedy.

They have considered your claim (and presumably said wait until the test case) but the fact you have now indicated you are in financial hardship has meant they have withdrawn your overdraft, so you are now suffering.

sparkle2607 · 8 September 2009 at 12:38PM

Hi I am in the process of replying to letters from Lloyds TSB where they are putting my claim on hold though they agree I am in financial difficulty! Both for an old personal account and a sole trader account. I am continuing to fight these rejections.
So YES Lloyds TSB I do believe they are going against what was agreed with the OFT as I have received a partial refund from Barclays.
I have gone to the Co-operative Bank, they are amazing and come with all the benefits.
Good Luck with your claim.x

esmerellda · 8 September 2009 at 12:46PM

Sole Trader account - I doubt you will have much luck with hardship/charges on their but you are able to take this case to the Financial Ombudsman.

Closed account - as per Bumgles comments

( by george I think he's got it

)

Now regarding withdrawing the overdraft when you have complained of financial difficulty - yes that is their right, with notice, but they should I believe say to you okay, you arent managing with the overdraft and we don't think you can continue to service it, so we'll close your account, remove the overdraft and move you on to a basic account, send the overdraft debt to collections and freeze charges on it and arrange with you for a suitable repayment plan. Thats basically what they are doing but with crap commuication and with this uncertain bit where you are left using the account making them more charges - thats the bit that is wrong.

So you need to a) open a basic account elsewhere
b) send them a letter saying the account is in dispute due to the legal situation with charges, and offer them a repayment, and also reiterate your hardship claim (i'll get an example of what I mean edit: here >> http://www.legalbeagles.info/forums/showthread.php?t=17854 which you can adapt to suit)

steve.j.bishop · 8 September 2009 at 12:47PM

Excellent

Thanks for the pointers people. I think I'll be popping into my local co-op bank now.

Best Regards

Steve

X

steve.j.bishop · 8 September 2009 at 1:55PM

Ok so now I'm on the phone to lloyds customer service. They guy on the other end has just stated "this is my own personal ipinion and not the view of the bak but I rekon the test case will go in the banks favour"

Just on hold waiting for the so called Customer Support Unit to discuss the overdraft facility they are threatening to revoke. Will kepp you posted.

Steve

natweststaffmember · 8 September 2009 at 2:01PM

steve.j.bishop wrote: »

Ok so now I'm on the phone to lloyds customer service. They guy on the other end has just stated "this is my own personal ipinion and not the view of the bak but I rekon the test case will go in the banks favour"

Just on hold waiting for the so called Customer Support Unit to discuss the overdraft facility they are threatening to revoke. Will kepp you posted.

Steve

If I still worked for the bank then my official view would be the same since any comments on the forum could get me sacked if I failed to follow bank policy.
I think the overdraft issue he was stating was that based on internal credit scoring would relate to whether an overdraft was increased or not or taken away. However, they have paid out on financial hardship BUT they don;t have to pay out even 1p of charges under financial hardship.
There is blanket stays on court claims so that bit is correct.

steve.j.bishop · 8 September 2009 at 2:14PM

So. They can still delay the refunds even if you are really in the myar so to speak??

Also on a side note dont bother phonenign their Customer Support Unit as they are merging the phone systems with HBOS and it all goine wrong. I was given a different number (that apparentley the staff use) and told to call back in about 2-3 hours. 0845 6006283 or 0845 6006281

Nice one Lloyds.

For the journey? I want to get off!!

Cheers all. Will keep you all posted and again thanks for comments/suggestions.

Steve

natweststaffmember · 8 September 2009 at 2:17PM

steve.j.bishop wrote: »

So. They can still delay the refunds even if you are really in the myar so to speak??

Also on a side note dont bother phonenign their Customer Support Unit as they are merging the phone systems with HBOS and it all goine wrong. I was given a different number (that apparentley the staff use) and told to call back in about 2-3 hours. 0845 6006283 or 0845 6006281

Nice one Lloyds.

For the journey? I want to get off!!

Cheers all. Will keep you all posted and again thanks for comments/suggestions.

Steve

If you are in financial hardship then they have to consider your claim but they don't have to pay out, for example, they can suspend interest and charges for 3 months, they could increase the overdraft even but they don't have to refund any money whatsoever.

Lloyds TSB claims they have not paid out a single financial hardship claim!!!!!!

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