Small businees overdraft cancelled

WendyRP

Hi. My husband has had a small gardening business for a few years. He has a £2000.00 overdraft, which he has never exceeded or abused. Lloyds TSB sent a letter advising that the overdraft would not be offered again this year. He was given 3 options - 1. To repay the overdraft immediately 2. To repay the overdraft over 12 months (which we cannot afford) 3. To convert it into a loan at 14.9%. He asked about the government help for small businesses but they said it didn't apply. Also that not taking out the loan insurance would result in him losing his good credit rating! Any help would be great! Thanks.

WendyRP

Obviously, i mean business overdraft !!

Extant

They're acting within the terms and conditions of the account - overdrafts can be withdrawn at any time, and immediate payment requested. There's no getting around that.

Are you sure you can't afford this at all? £2k over 12 months is £166, if you're even at your limit. Your other options are appealing and seeing if you can extend that 12 months, but then you'd be bordering on the loan anyway.

opinions4u

WendyRP wrote: »

He asked about the government help for small businesses but they said it didn't apply. Also that not taking out the loan insurance would result in him losing his good credit rating! Any help would be great! Thanks.

Barclays Manager calls it correctly in his reply.

As for the piece I have highlighted, can you prove it? You should report the member of staff who said that to you, because it is clearly wrong and they are attempting to sell you an insurance in a way that is misleading.

That's not to say that the benefits of the insurance are right or wrong for you.