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  • FIRST POST
    • Mr.Wrong
    • By Mr.Wrong 11th Mar 17, 10:53 AM
    • 61Posts
    • 10Thanks
    Mr.Wrong
    Lloyds closed my account whilst overdrawn
    • #1
    • 11th Mar 17, 10:53 AM
    Lloyds closed my account whilst overdrawn 11th Mar 17 at 10:53 AM
    So I've been in my planned overdraft for about a year now. Maxed out at £4,200 and the charges each month totalled it to -£4,361 and I got an email saying if I didn't get my balance up to the planned overdraft amount of £4200 then they would close the account on March 1st.
    Logged into my account online on March 4th and all was still the same.
    I was in no financial situation to top up the balance, I was silly to ignore their messages and now I've tried to log in it says I do not have a bank with lloyds.

    What's going to happen next?
    I've received no mail or messages, it's been 6 days now.
Page 1
    • enthusiasticsaver
    • By enthusiasticsaver 11th Mar 17, 11:24 AM
    • 3,994 Posts
    • 7,165 Thanks
    enthusiasticsaver
    • #2
    • 11th Mar 17, 11:24 AM
    • #2
    • 11th Mar 17, 11:24 AM
    I would imagine they have passed it to debt recovery agents. Does your salary go in there?
    Countdown to early retirement on 31.12.17 4.5 months to go.
    • sourcrates
    • By sourcrates 11th Mar 17, 11:33 AM
    • 11,545 Posts
    • 11,131 Thanks
    sourcrates
    • #3
    • 11th Mar 17, 11:33 AM
    • #3
    • 11th Mar 17, 11:33 AM
    They can, and do, pull your overdraught "at any time", as its repayable on demand.
    You will most likely be contacted by Lloyd's account collections first.

    I would not wait around here, your priority is preferably a new basic account, for everyday use.

    Get your salary, payments etc sorted.
    I'm a Board Guide on the Debt-Free Wannabe, Credit File And Ratings, and
    Bankruptcy And Living With It, boards. I'm a volunteer to help the boards run smoothly, and I can move and merge posts there.
    Board guides are not moderators and don't read every post. If you spot an abusive or illegal post then please report it to forumteam@moneysavingexpert.com. Any views are mine and not the official line of MoneySavingExpert.com.

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    • Louise66
    • By Louise66 11th Mar 17, 11:35 AM
    • 6 Posts
    • 4 Thanks
    Louise66
    • #4
    • 11th Mar 17, 11:35 AM
    • #4
    • 11th Mar 17, 11:35 AM
    It'll likely now go to their collections department who will get in touch with you to arrange repayment. They'll issue you a Formal Demand letter which will ask for payment of the debt in full, whatever you do DON'T ignore this letter. Get in touch with them and arrange a repayment plan. It's unlikely they'll litigate against you given the size of the balance but you won't avoid having to repay it as if you don't they may instruct a DCA. If you co-operate from the get-go they'll happily talk with you and arrange a repayment plan. They'll start by issuing you an Income and Expenditure Form which you will have to complete, they have the right to challenge what you put if it doesn't add up so be completely truthful about your incomings and outgoings. Once they have this they'll arrange a repayment plan with you that fits what you can afford, they aren't allowed to put you in a more difficult financial position than you're already in so will work within the bounds of your means and affordability.

    This won't go away but you can get out of it if you act straightaway and admit you owe the money. If you try and get out of it they can instruct collection agents to recover the money and P.I's to check up on your financial situation if you don't appear truthful or try to get out of paying.

    It will all be fine, just make contact as soon as you receive their letter and work with them, they're all human and understand people in financial difficulty and will adhere to strict protocol for dealing with customers in financial difficulty.

    Good luck and keep us posted.
    • fatbelly
    • By fatbelly 11th Mar 17, 1:22 PM
    • 11,078 Posts
    • 8,256 Thanks
    fatbelly
    • #5
    • 11th Mar 17, 1:22 PM
    • #5
    • 11th Mar 17, 1:22 PM
    As someone said in your last thread

    use http://www.stoozing.com/calculator/soa.php and format it for MSE

    Then we can have a look at the whole picture.

    They did suggest then that you get a new account for your income, an account not connected to Lloyds. Hopefully you have done that
    • Mr.Wrong
    • By Mr.Wrong 11th Mar 17, 8:02 PM
    • 61 Posts
    • 10 Thanks
    Mr.Wrong
    • #6
    • 11th Mar 17, 8:02 PM
    • #6
    • 11th Mar 17, 8:02 PM
    I have all my incoming and outgoings in my Halifax account, I'll call lloyds Monday thanks
    • January2015
    • By January2015 11th Mar 17, 8:16 PM
    • 1,730 Posts
    • 4,672 Thanks
    January2015
    • #7
    • 11th Mar 17, 8:16 PM
    • #7
    • 11th Mar 17, 8:16 PM
    I have all my incoming and outgoings in my Halifax account, I'll call lloyds Monday thanks
    Originally posted by Mr.Wrong
    Halifax Bank is definitely linked in some way to Lloyds. My loan was with Halifax but I now have to deal with and pay Lloyds recoveries.

    If I was you, just to be safe, I would move all incomings to a new bank account with no links at all to Lloyds - just to avoid the possibility of them using right of offset.
    DFW Nerd No. 1484 LBM 07/01/15 Debt was £95k I'm driving it down
    £1k emergency fund (member #84) £1k/£1k
    Xmas 2017 £1 p/day challenge No. 20 - £420/£730
    Make £10 p/day Feb £74.31, Mar £664.37 Apr £40
    • Westie983
    • By Westie983 11th Mar 17, 9:26 PM
    • 3,755 Posts
    • 13,782 Thanks
    Westie983
    • #8
    • 11th Mar 17, 9:26 PM
    • #8
    • 11th Mar 17, 9:26 PM
    I have all my incoming and outgoings in my Halifax account, I'll call lloyds Monday thanks
    Originally posted by Mr.Wrong
    As others have said I would open a new account outside of Lloyds Banking Group, (which is namely Halifax, LLoyds, and Bank Of Scotland) as they may use the onset rule, and also good to have money in another account that has no link..

    Westie983
    Save 12k in 2017 #16 Total £18,855/£12,000 157.12%
    Sealed Pot Challenge ~ 10 #97 Total (£252) +£158/£500 = 82.00% ( x 10)
    Xmas 2017 £1 a Day #6 Total £300/£365 = 82.19%
    Virtual Sealed Pot #1 Total £1,200/£1,000 = 120.00%
    £2 Savers Club 2017 #3 Total (£1,450)+£50/£2,000 = 75.00%

    Total £22,265/£15,865 = 140.34%

    I'm a Board Guide on Budgeting & Bank Accounts, Debt-Free Wannabe, Disability Money Matters, and Savings & Investments. I'm a volunteer helping the boards run smoothly, but I'm not a moderator, and do not read all posts. If you see an inappropriate/illegal post then email forumteam@moneysavingexpert.com
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