Lloyds has any had this problem?

HHH_2 · 24 November 2006 at 3:00PM

Pay day today and I wanted to withdraw it all to put in new bank account ready for my first DMP payment ( too late to do it through work payroll) but presumably because I have a loan with lloyds they are withholding the amount of the loan. Are they allowed to do this? I have been in correspondance with them about my situation they have been no help whatsoever they have my CCCS number and the letter from CCCS. I need MY money not just to start my DMP but also to get through the month. What can I do to stop them doing this please?

lynzpower · 24 November 2006 at 3:07PM

yes they are allowed to do this.

thats why when you start of a DMp you are encouraged to get a basic account that has no connection to any of your creditors.

file_wizzard · 24 November 2006 at 3:09PM

Unfortunately not much, they are allowed to "offset" against any amount you owe them, HOWEVER under the banking code this must not be done if it will cause you disproportionate or unnecessary financial or emotional hardship.

Your best bet is to go into the account holding branch and speak to the branch manager, explain your situation, and that you are aware that to withhold all funds from you is in breach of the banking code.

I doubt they will release all of your salary, but they will be obliged to at least release enough for reasonable living expenses

Lisa982 · 24 November 2006 at 3:12PM

Hello, my husband is on a dmp with payplan but he was advised to open his new bank account before informing Lloyds of the financial situation. Unfortunately I think there is a law/clause that allows a bank to have rights to any money in your account if you owe them or any 'accociated' banks anything.

xx

Lloyds has any had this problem?

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