A Little Help

Mcozzy

Hi

I have had some problems with Lloyds TSB and need some advice. I’m thinking Bankruptcy is the best option but I’m not 100% sure and would like some other opinions

I opened a Lloyds TSB account several years and after paying hundreds possibly thousands in fees and charges decided to close my account, a lot of the charges was due to Lloyds themselves. I went into the branch as was told I couldn’t close the account due to some more bank charges due to come out due to me going 93p overdrawn. I was charged £90 for this, I informed them I wouldn’t pay the charges, changed my bank and carried on with my life.

4 Years later, my parents were sent a letter saying I owed Lloyds TSB a total of £10,000 increasing everyday I’m overdrawn, they contacted their solicitor and denied having any contact with me so they Lloyds couldn’t blacklist their house. Having sat down and worked it out, it appears they have charged me for the charges every month since I changed account. Somehow they have tracked me down and started calling me 4 times a day. I don’t really mind the calls because it gives me a great way to vent my anger, but the problem is that I am close to £15,000 in debt with them, due to their own charges.

Now it comes to the time where im trying to get a house but of course i cant because of my credit arrears.

Being in debt has never really bothered me as I have always battled with it for one reason or another the vast majority of it is my own fault but this one is a bit extreme even for my standards.

I am possibly close to £22,000 in debt with various creditors and credit agencies.
Is Bankruptcy the best way out?

Any advice would be appreciated.

Sophrosyne

I'm no expert but I'm sure you could get some of the ridiculous charges written off. Someone who knows what they are talking about will be along to help soon.

Mcozzy

Ive tried that, but it ended up costing me more money to fight it. So i chose to ignore it instead. I know its not the greatest way to deal with debt but I went witht he out of sight out of mind way of thinking

ActsOfKindness

Yes, don't rush in to bankruptcy. If you can get this business with Lloyds sorted out, probably things won't look quite so bad?

Mcozzy

Ive tried, but given up, after 5 years of talking its always you have to pay all of it in 1 lump sum, and they wont take a repayment plan, Which always leaves me telling them where to go and ignoreing them for a few months before i try again to sort things out. Lloyds TSB aren't very customer friendly. Aprently im not the only one who has had a big problem with the charges.

DON79

Hi Mcozzy, have you actually taken this complaint to the financial ombudsman or the Office of Fair Trading? Because this is totally ridiculous and clearly excessive charging on the part of Lloyds TSB.

This In my opinion, is a separate case than that of claiming back bank charges. This is about the failure of Lloyds to write sooner than 4 years to claim the debt and why they have failed to do so, allowing these charges to build up to such a ridiculous level. I think that if you have the strength to fight, this should definitely be a matter for the Financial Ombudsman.

Other than that, best thing to do first of all is to get advice from National Debtline, the CCCS or Citizens Advice Bureau - the details are in the sticky at the top of this thread.

Please do get some advice, I would seriously consider making this a formal complaint and then sending it to the financial ombudsman. What totally disgusting treatment by LLoyds TSB!

best wishes and if you do get advice that BR is the best option, please come back and see us again.

Mcozzy

I spoke with the office of fair trading about this mater cause i thought it was some serious over charging as well, But because i changed address without notifying Lloyds. and basically avoided them for 3 and a half years before they finally got in contact with my parents there isnt much that can be done. So ive left it another 2 years and to be honest was quite prepeared to just leave it for god knows how long, But now my partner wants to get a house so i need to sort it out.

Also i failed to add the other debts of around £7000 are extremely old, i always thought running was a better option than paying, So far Lloyds are the only ones who managed to get in contact again

As you can tell alot of these are my own fault, but i dont really see any other option but BR,

DON79

ok, if you have not acknowledged to lloyds that you owe this debt in the past four or five years, it becomes statute barred I believe after six years so they cannot pursue you for it, however this won't help clean up your credit file in the short term am afraid, search the forum for "statute barred" and see what comes up.

Unless your partner has a financial association with you, it should not prevent your partner from getting a mortgage.

defaults and debts drop off your credit file after six years so if it has been four or five years since default, your credit file could be clear in a year or two perhaps?

Sorry I can't be of more help.

ActsOfKindness

Lloyds TSB crippled us both personally and our business with charges, like you, over a matter of pence sometimes, until we went bust. My DH and I went bankrupt in April 08 and we were discharged early in November and December of 08, got our letters through on Friday. I'm sure you'll get a lot of help here, I personally wouldn't give up, if a lot of this debt is charges upon charges. They know damned well what they're doing, and it makes me mad. Well done for seeking help now, and good luck.

JPS29

Hi,

A good way to find out who you owe and how much would be to check your credit report. If its the first time you've checked it you can even do it for free via trial. This will show you who is still showing as your creditors and hopefully eliminate future surprises when they come out of the woodwork.

HTH

tigerfeet2006

McCossy are any of these debts 6years old? When was the last time you paid any money to them? When was the last time you acknowledged any in writing? If any of this is over 6 years then you can send the statute barred letter.

Check out the info on the NDL site and give them a ring to go through this. You may not need to tae the drastic step of BR.

http://www.nationaldebtline.co.uk/england_wales/factsheet.php?page=25_liability_for_debts_and_the_limitation_act