Fair or greedy bank?

Heddwen_2

Hi

I have still go t a few debts with my old Lloyds Bank which developed through overdrafts me and husband had with them.

we have 3 accounts in all

Mine is £360 overdrawn and I pay off £10 per month

Husbands is £1,225 which he is paying off £20 a month

and we have a joint acount which is around £3,000 overdrawn and I am paying off £10 a month on this also.

We asked the bank about 4 months ago if we could discuss consolidating these debts into 1 loan so we could concolidate what we owed and concentrate on repayment.

But their debt collection team refused to help and as it is now in their hands the bank and our ld manager also refuse to help and say it has nothing to do with them now as it is in their banks collections department.

To avoid us being taken to court ver this we replied to their letter and arrange the minimum repayments as set out above and were told they would confirm this in a letter and put in place a reducing overdraft to enable us to repay and decrease the debt (slowly) without incurring unauthorised charges.

We havent received this letter even though I have chased them up.

They also refused to consolidate the debts and give us a loan, but did advise that if we kept repayments up and were n time they MIGHT consider looking at this in 6 months time (but it didnt sound hpefull, more threatening) this would about in February 2005.

Therefore we are throwing £40 a month away into these Lloyds acounts but getting nowhere as, for example, I am paying off the minimum agreed amount they ask for and the maximum I can afford to pay each month of £10 and Lloyds are still charging ME
Overdraft interest - £4 + Account charge -£5 a month so Lloyds is adding £9 of charges and the debt reduces by aprox £1 each month!


We would obviously rather scape together £40 a month and pay this off a loan and see the debt reducing than waste it to watch it sitting there and Lloyds Bank profit from our misery (again).

I know this is a bit of a jumble but if someone has been in a similar position and had it sorted out perhaps they cna help us?

I have thught of putting it on a Credit Card or trying to get a loan but as we are not homeowners (and dont even live in a residential house) its difficult.

We just want to pay off this but bank is being unhelpful and greedy piggies!

Thanks

deemy2004

See if you can get a consolidation loan from elsewhere, say Northern rock, explain the situation or try an online provider such as egg.

The problem is once the bank has 'trapped' you there nothing much you can do but to repay the debt asap, to escape their clutches.

Heddwen_2

Hi

Thanks for reply. I have thought of aproaching other lenders but as we live in a Park Home (AKA static caravan) we're not classed as 'home owners'.

Northern Rock were our first time buyer mortgage lender back in 2000 and we didnt find them very helpful then.

I am also very aware (and concerned) that we don't fall into the same trap of borrowing yet more money to get us out of trouble short term as I am worried that it will be another quick fix but leave a longer term financial headache, which is the 'trap' we are trying to avoid so we can eventually (amd hopefully sooner rather than later) get back on our feet and put the past negative financial history behind us!


Thanks for your help and support it was appreciated so dont get me wrong!

Jen_Jen_5

Perhaps a trip to the CAB or call to national debtline may help. Sadly the creditors wont listen and a letter from a third party can get interest and charges stopped when nothing else is different.