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  • FIRST POST
    • bb130417
    • By bb130417 6th Feb 18, 8:47 AM
    • 8Posts
    • 1Thanks
    bb130417
    Refunded interest after DRO?
    • #1
    • 6th Feb 18, 8:47 AM
    Refunded interest after DRO? 6th Feb 18 at 8:47 AM
    Hi all,

    I was discharged from the DRO in April of last year, but the other day I received the following letter from Lloyds Bank.

    "Dear bb,

    We agreed to feeeze interest and charges on your account when you told us you couldn't keep up the interest payments. We have realised that we wrongly charged interest of £180 to your account. I'm sorry about this and we've now credited this amount back to your account. This refund will reduce any outstanding balance and puts your account back to where it would have been, without interest having been charged."


    Since I have completed my DRO and the debt was written off, as far as I know, the accounts were closed.

    If they have credited me £180, can I ask for this amount as a cheque or otherwise withdraw it?

    Or this just a case of Lloyds saying, "Actually, we were overcharging you all along, tough luck, can't do anything about it now, we're just letting you know for some reason".

    I'd like to know where I stand before I give them a call, really.

    Any help would be appreciated!
Page 1
    • RADDERS
    • By RADDERS 6th Feb 18, 9:05 AM
    • 187 Posts
    • 204 Thanks
    RADDERS
    • #2
    • 6th Feb 18, 9:05 AM
    • #2
    • 6th Feb 18, 9:05 AM
    What they are saying is that you overpaid interest on your loan, so they have credited it to the account.
    But as you were on a DRO you did not pay off all the debt and they are allowed to keep this amount to put towards your debt but will not chase you for any more money.
    This is the same as if you had been bankrupt you would not have received any of this money.
    • bb130417
    • By bb130417 6th Feb 18, 9:20 AM
    • 8 Posts
    • 1 Thanks
    bb130417
    • #3
    • 6th Feb 18, 9:20 AM
    • #3
    • 6th Feb 18, 9:20 AM
    What they are saying is that you overpaid interest on your loan, so they have credited it to the account.
    But as you were on a DRO you did not pay off all the debt and they are allowed to keep this amount to put towards your debt but will not chase you for any more money.
    This is the same as if you had been bankrupt you would not have received any of this money.
    Originally posted by RADDERS
    Ahh, that makes sense. Thank you.

    Shame though, it's not much money but it would have come in really handy. Never mind, eh?
  • National Debtline
    • #4
    • 6th Feb 18, 5:08 PM
    • #4
    • 6th Feb 18, 5:08 PM
    Hi all,

    I was discharged from the DRO in April of last year, but the other day I received the following letter from Lloyds Bank.

    "Dear bb,

    We agreed to feeeze interest and charges on your account when you told us you couldn't keep up the interest payments. We have realised that we wrongly charged interest of £180 to your account. I'm sorry about this and we've now credited this amount back to your account. This refund will reduce any outstanding balance and puts your account back to where it would have been, without interest having been charged."


    Since I have completed my DRO and the debt was written off, as far as I know, the accounts were closed.

    If they have credited me £180, can I ask for this amount as a cheque or otherwise withdraw it?

    Or this just a case of Lloyds saying, "Actually, we were overcharging you all along, tough luck, can't do anything about it now, we're just letting you know for some reason".

    I'd like to know where I stand before I give them a call, really.

    Any help would be appreciated!
    Originally posted by bb130417

    Hi bb130417


    If you contact Lloyds they may say that they are not obliged to refund the interest directly to you because you never paid the debt back. However, they have said they have credited the money back to your account (which has a zero balance due to the DRO), so there may be an argument to say you are entitled to that credit back. There's certainly no harm in asking, and as the amount is low (less than £1000) it would not affect your DRO.


    Susie
    @natdebtline
    We work as money advisers for National Debtline and have specific permission from MSE to post to try to help those in debt. Read more information on National Debtline in MSE's Debt Problems: What to do and where to get help guide. If you find you're struggling with debt and need further help try our online advice tool My Money Steps
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