Does anyone know what would happen if.....

shellsuit

I missed a loan payment?

I bank with Lloyds and the loan is with them. I've banked with them for 10 years and this is currently my 3rd loan with them (I don't have 3 loans with them, I have had 2 in the past and they have both been paid in full).

I've never missed/defaulted on a payment before, but I am in a spot of bother and need the funds which would be for my loan, for something else.

Does anyone know what would happen if I did this?

Burlesque_Babe

hi - it would probably be recorded on your credit report as a missed payment (a number '1'), and, there may be possible late charges from your bank for missing a payment (I guess it might depend on the T+C's of your loan, might be worth having a look at the list of charges if there are any)....also, if it is a bounced direct debit your bank might well charge you for that as well??

Would it be possible to give Lloyds a ring and ask if the date could be changed just this once to maybe give a couple of weeks breathing space?? I don't know if that is ever possible, but it might be worth asking as you've had such a good relationship with them?? If that were me, I'd try that, although I'm sure there will be others along soon who will probably be able to give you some other ideas to help.

shellsuit

keren29 wrote:

also, if it is a bounced direct debit your bank might well charge you for that as well??

I know

What I was going to do was cancel the DD (I hate the blummin things anyway as I am not paid into the bank, but in cash in a wage packet, so it is a pain in the backside checking all the time to see what DD is due/how much I have in the bank etc and then running to the bank to put more cash in) and then just start repaying as normal next month but over the counter in the bank (which would work out easier for me).

I'm not sure if anyone else here has a loan with Lloyds and has missed a payment or more?

I don't mind if more money gets added onto the loan because of a non payment because we are coming into a little money soon and that loan will be paid off in full.

I just don't want them demanding the missed payment plus next months, next month.

Xbigman

You would be best off telling them you were in short term financial trouble and were cancelling the DD. Then tell them you will pay half the amount of the loan for two months then make it up afterwards. Paying half for two months rather than just completely missing a payment always looks better.
Regards



X

she_ra987

Hi

I used to work for the collections centre for LLoyds TSB, collecting on arrears for loans and od's etc...!

It's prob changed a bit since I've been there but I reckon your best bet would be to talk to the branch first to see if there is anything they can do. If it goes to the collection dpt it isn't great for your internal credit score but shouldn't impact your credit file too much. They should be able to organise an arrangement so you split the missed payment over 6 mths (or less if you can afford it) so if you pay £600 pm usually you'll pay £700 for 6 mths but your account will be held in collections until it's up to date. But I think you should be able to get help from the branch if there is a genuine reason why you have to miss the payment (don't quote me on this though!). Hope this helps.

Mark7799

shellnsteve wrote:

I know

What I was going to do was cancel the DD (I hate the blummin things anyway as I am not paid into the bank, but in cash in a wage packet, so it is a pain in the backside checking all the time to see what DD is due/how much I have in the bank etc and then running to the bank to put more cash in) and then just start repaying as normal next month but over the counter in the bank (which would work out easier for me).

I'm not sure if anyone else here has a loan with Lloyds and has missed a payment or more?

I don't mind if more money gets added onto the loan because of a non payment because we are coming into a little money soon and that loan will be paid off in full.

I just don't want them demanding the missed payment plus next months, next month.

Check the terms of the loan - you may find you are not allowed to cancel the direct debits or by doing so you will be in breach of the loan. Have you thought of trying to arrange a short term overdraft?

devoncat

Notify the lender. I had to do this once and they were very understanding. The moved the date further ahead (two weeks) and no penalties.

YorkshireBoy

Mark7799 wrote:

Have you thought of trying to arrange a short term overdraft?

It's worth a try, but I would have thought this might be difficult since the OP seems to deposit cash on an 'ad-hoc' basis rather than have their wages paid into the account by BACS direct credit.

Also, on the subject of the possible damage to the credit file...

Making an 'arrangement to pay' *might* be recorded as such on the credit file (logged as an 'I' on your Equifax file for example). This *may* be worse than missing a payment, as it would show other lenders that you were in difficulty - which you obviously are. If you simply 'missed' a payment, you may be able to explain this away to future lenders as a 'problem with the direct debit collection'. If your credit history is otherwise good, you might want to consider the missed payment option, although it's very much a case of 'making the best of a bad situation' isn't it?

This is NOT advice - just something to think about.

Good luck.

shellsuit

If i could get an overdraft I would get one tomorrow, but I can't. I don't have money going into the account regularly.

I rang my ex earlier as he also banks and has a loan with Lloyds to see if he had ever missed a payment - he cancelled his DD to them in September as he was signed off from work after an accident, they wrote to him saying the DD had been cancelled and he hasn't heard anything since!

I wouldn't want to do anything like this, it's just this months payment that I can't pay.
God help him when they do contact him though!

I can't pay half this month and half next month, I don't have anything towards it this month as I have £100 each of rent and CT to catch up with and they are far more important. (My loan repayment is £209 a month)

Hopefully they will just add a charge onto the loan/interest for missing this months payment and then like I said before, it will all be paid off anyway soon enough. (Well within the next 3 months)

Sleekit

My missed payment (with RBS) happened exactly as She_Ra said. I was hit with a whole load of charges for both the loan and my bank account as the DD was rejected for being overdrawn. Both my accounts were then referred to the collections department as I bank with RBS as well. The loan payments were increased for 6 months until I'd paid off my arrears, and for those 6 months I really regretted taking my eye off the ball and missing the loan payment!

jayne26

have you checked your bank about the overdraft thing, i got a temp one as had large amount going out , the bank gave me a temp one for a few months then said they would review it , the review was in dec 05 but i still have the faciliy, dont use it though , sometimes you think the bank wont help out and you could be plesently surpriced , worth a call