Bank Account In Recovery?

Doooford

Acouple of months ago I put called my bank and disussed my affairs with them as they were ending my overdraft and I couldn't afford to pay it back. So they got all my accounts with them, lumped all of the debts together and agreed that I pay them a certain amount a month.
Basically, I wondered what this is called, is this account in recovery?
I ask because I need to do it with another account because I can't get out of the charging cycle with Lloyds, and just got a letter totalling my charges this month at £180 for being £35 overdrawn for 15 days (at £15 a day plus charges). I need to agree somrthing with them and wondered if I could just call them up and say "I wondered if you could put my account into recovery as my finances are rubbish, and I owe (and give them all my info)" What do you think?

Thanks

Doooford

...anyone have any ideas?

misspoppy

HI

You could just open another bank account that has nothing to do with either of your orginal banks and then contact them and tell them that you want to close the account and make arrangements to pay the outstanding balance. I can recomend the Co-op cashminder account and others have recomended the Natwest step account. Both don't allow cheque books or overdrafts.

vikki400

I used to work in the Lloyds collection department many years ago, it could have all change, but it can't have changed that much.

What we would have done in your case is agreed a Stepped Limit Agreement. So they increase you agreedoverdraft to xxx and then reduce it by £XX per month on an agreed date. These are really difficult to stick to if you are still using the account so you might want to find another one that you can use while you are doing this. At the Collections stage Lloyds will not usually freeze interest, but you will be paying it at the 'agreed overdraft' rate and you won't be getting charges. As I remember though you only got transfered to the collection department if you were over your overdraft more than a certain amount of money and for 21 days. Not sure if the branches operate in the same way as Collections.

And like I said, it was a long time ago and it could have all changed by now. Still the best thing to do is just call them up (not using any fancy jargon) and tell them what is going on.

Hope this helps

Vikki

Doooford

Thank you Vikki and all others.
I have arranged for all payments in and out to go to a secondary account that I have that is hardly used and just has a £500 overdraft on. So I'll check tomorrow and if the payment goes to the right account then I'll call up Lloyds and talk to them about it. Thanks for all your help, although I knew all of this, sometimes you just need somebody alongside you saying "yes, that is the right way to go", well I do anyway :T