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  • FIRST POST
    • vivaciousbiscuit
    • By vivaciousbiscuit 3rd Nov 17, 11:53 PM
    • 2Posts
    • 0Thanks
    vivaciousbiscuit
    Old overdraft with Lloyds
    • #1
    • 3rd Nov 17, 11:53 PM
    Old overdraft with Lloyds 3rd Nov 17 at 11:53 PM
    Hello everyone. I'm new here, and I couldn't see an overdraft section so thought I'd ask my question here.

    I had an overdraft with Lloyds TSB around 2006-2007. I came about having this overdraft, roughly £900, as I had a loan with them and when I got paid one particular month, they took all the money to pay off a portion of the loan without my consent, leaving me without any money. I contacted their call centre asking what on earth was going on, they basically told me "it's happened, we've taken it and we won't give it back. But what we can do is give you an overdraft and then you can pay that off overtime." I pressed the issue, stating that I had an arrangement to pay back approx £125-£140 a month on the loan and I gave no consent to take out all my monthly wage, approx £1100 at the time, whatsoever. It was repeated again, they took it, we won't give it back but we can give you an overdraft etc. Being young, naive and needing to pay bills, food and transport, I took the overdraft as I felt I had no choice and they weren't inclined to shift their position.

    So my question is, can I do anything about this now? I was just discussing this with a friend and it never occurred to me that I could do something about it until now and claim some recompense for their deplorable actions. The overdraft technically still exists, as it was consolidated into one debt after I lost my job then I became quite sick afterwards, unable to pay it back. I've already claimed PPI from them because they mis-sold me insurance on my loan back then, if that helps any.


    Many thanks
Page 1
    • zx81
    • By zx81 4th Nov 17, 7:16 AM
    • 14,049 Posts
    • 14,741 Thanks
    zx81
    • #2
    • 4th Nov 17, 7:16 AM
    • #2
    • 4th Nov 17, 7:16 AM
    I doubt you will get anywhere, particularly now.

    Although their action seemed dramatic, it seems they exercised their right of off set, if you were in arrears, which you agreed to in the terms.
    • jonesMUFCforever
    • By jonesMUFCforever 4th Nov 17, 3:04 PM
    • 24,171 Posts
    • 11,445 Thanks
    jonesMUFCforever
    • #3
    • 4th Nov 17, 3:04 PM
    • #3
    • 4th Nov 17, 3:04 PM
    OP reading between the lines I think you must have been in arrears with your loan and this is the amount they would have taken from your account- which is in every bank's terms and conditions.

    Are you still with Lloyds now and are you still overdrawn?
    If so you need to know that you will be charged daily now - if you have an OD of over £500 (constant balance) then you are going to be paying more.
    What goes around - comes around
    give lots and you will always receive lots
    • GothicStirling
    • By GothicStirling 4th Nov 17, 3:14 PM
    • 967 Posts
    • 717 Thanks
    GothicStirling
    • #4
    • 4th Nov 17, 3:14 PM
    • #4
    • 4th Nov 17, 3:14 PM
    Lloyds had the legal right to take the money from your bank account, this is why debt charities recommend that you switch to a bank you don't owe money to when entering a debt repayment plan.
    • vivaciousbiscuit
    • By vivaciousbiscuit 8th Nov 17, 1:34 PM
    • 2 Posts
    • 0 Thanks
    vivaciousbiscuit
    • #5
    • 8th Nov 17, 1:34 PM
    • #5
    • 8th Nov 17, 1:34 PM
    Thanks for the replies guys. Much appreciated. I knew it was a long shot but one I felt to take anyway. Even though what they did was wrong, they were within their rights to do so.

    Many thanks!

    VB
    • iolanthe07
    • By iolanthe07 8th Nov 17, 3:13 PM
    • 4,903 Posts
    • 4,620 Thanks
    iolanthe07
    • #6
    • 8th Nov 17, 3:13 PM
    • #6
    • 8th Nov 17, 3:13 PM
    Even though what they did was wrong, they were within their rights to do so.

    Sorry, but if it was within their rights, then how was it wrong?
    I used to think that good grammar is important, but now I know that good wine is importanter.
    • StopIt
    • By StopIt 9th Nov 17, 9:03 AM
    • 1,371 Posts
    • 1,167 Thanks
    StopIt
    • #7
    • 9th Nov 17, 9:03 AM
    • #7
    • 9th Nov 17, 9:03 AM
    Thanks for the replies guys. Much appreciated. I knew it was a long shot but one I felt to take anyway. Even though what they did was wrong, they were within their rights to do so.

    Many thanks!

    VB
    Originally posted by vivaciousbiscuit

    Alas, what you did was wrong.


    If you're in arrears with a loan, the money you then pay into your account isn't yours, but theirs, via the right to off-set.


    It isn't often used, but is a completely legal thing to do.


    If you ever do hit arrears like this, aside from contacting a debt charity for help, always create a basic account totally separate from the bank you owe money to. That way you control how much money they get, not you.


    No, there is no come back to this, as Lloyds have done nothing outside of their rights. However, as stated, there are ways to avoid this from happening, and if anyone is in a similar situation now, always post up here for help to keep control of your finances.
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