Do you have money worries and a loan or credit card with your bank?

Hyro

Lloyds TSB recently referred me to an external debt collection agency when my account was in credit and I had no other debts (only savings) with Lloyds TSB.

The man at the debt collection agency said he had had lots of Lloyds customers who had nothing whatsoever wrong with their accounts, including millionaires, referred to him over the previous 48 hours.

I received a very harsh letter from the debt collection agency and so far no apology from Lloyds TSB.

They seem to have lost the plot.

lil_miss_insanity

I also have the unrivalled joy(!) of working in a branch (not Lloyds), and have been aware of the "set off" clause for some time. I know it's technically the customer's responsibility to make sure they read and understand the terms and conditions of the loan agreement before they sign it, but I think more branch staff should specifically point this out, as it seems to me one of the most important parts.

I always explain it in ways they will understand simply. "This means that if you miss a payment, and you have money in ANY of your accounts with [our bank] then the bank reserves the right to just take the money. Even if it is the only money you have for your rent or bills or food. Just to make you aware, that is what that means." I know that's not exactly the party line, but being so blunt up front is the only way to get people to understand what they are signing.

Once it gets to the point when the set-off has occurred, sadly there is usually nothing we can do about it (except suggest they put future money elsewhere for the time being to safeguard it) because once it's been taken we can't easily get it back. That would count as further lending which the system wouldn't approve, and then all we can do is refer them to Collections - who helpfully only work office hours and not branch hours. It's a difficult situation and I feel for anyone who finds themself in it.

Curly_Chick

Having read all the post Lloyds TSB seem to be worse than most. I have banked with them since I was at school and I have to say that while I get very good service at the moment - which is becasue I have a very good credit score and want me to buy things from them - I have been on the reciving end of their shocking customer service as a student.

I refused to change my current account to a student account when I was at Uni as I didn't want easy access to a HUGE overdraft that I had no way of paying back. Everytime I went in I was presured to change my account. I took a credit card out with them in my 3rd year as I had a Part Time job and had to pay for things up front and then claim them back. I had a really difficult time getting them to accept my DD to pay off in full each month, so I started paying via the phine, then for some reason my statments which had been regular stopped arriving causeing me to either miss payment dates or pay late! Which incurred charges they then took money from my current account to pay the outstanding balance and charge me for taking me overdrawn in my current account! When I raised this with them they said I should have taken the student account like they had advised me which has a bigger overdraft facility and then there wouldn't have been a problem! I paid the card off in full and have never used it since!

I have been meaning to do a review of my accounts etc and reading all the problems people have had with Lloyds has reminded me that they have only ever been nice and helpful when I have money and just the worse people ever to deal with when you have problems! This has reminded me of my new years resoultion to sort out my bank accounts to make sure I have the best deal. I think I will really rather enjoy the meeting with my bank manager I have just set up where I will be closing most of my accounts with them and I will definalty be telling them that they way they have been treating their customers who are going through a hard time at the moment has played a part in my chioce!

squibbs25

I started a thread about this back in march
(see here http://forums.moneysavingexpert.com/showthread.html?t=1554333&highlight
and ok while i admit the title was maybe (slightly) dramatic, it was really a correct at that time.
I was also quite suprised by the reaction by some fellow posters and how they blamed my sister for being in debt to the bank in the first place, all she wanted to do was warn others who may have a debt to the bank that they can help themselves to any other account they hold (in this case she was named as a TEE to her child on his account - in the end the money was refunded backinto the childs account but she closed all accounts with that said bank).

jimsta

This has just happend to me with Nationwide FlexiAccount, just started to get back on my feet after being made redundant, phoned them up trying to say this can't be done and i was out of work for 2 months, plus with the CCCS so i am trying to get this debt sorted, But Nationwide didn't care.
Straight away went around to open another acount where i have no debt and found Yorkshire bank ready cash account, so have with account Yorkshire now but really peed off though, no money this month to pay bills let alone food.
going to phone CCCS tomorrow morning to see what they say about this.
if this does happen to you and want to change accounts and your credit rating is poor i do recommend Yorkshire bank, They don't do Credit rating search they just ask if you ever been Bankrupt, but this is for there basic account plus you have to go to the Bank in person to do it and you get internet service with this bank.
Good luck to all.
sorry for the spelling i'm a builder by trade.

smalandcute

to be honest with you all, i think to a degree the banks have a right to do this. you have borrowed money from them for whatever you needed/wanted and agreed to pay it back but have broken your bargin. you signed the t+c's so you were aware of this. therefore it is not technically theft and they can do this

however there are some situations which i do think is wrong:
- taking from a childrens account
-taking from the sick and pregnant
-taking benefit money
-taking money from people who have money from the social to save their lives
- those who have requested help and support from the banks but in all fairness they do not have to agree to this and if they think that you are not doing enough then they should be allowed to reverse it to what they want.

joy47 wrote: »

I took out a mortgage on my property for a loan for my partner on condition he made the repayments. We had to have a joint bank account at the same bank for the payments to come out of. I had nothing to do with this account until my partner stopped paying the mortgage. I then discovered he had taken out a credit card in his name only on the account and was in debt. The bank knew the situation amd knew I had no knowledge of the card debt. I have been paying the mortgage for the last 18 months but last month when I went in to pay my mortgage they took the payment and then told me that the money had gone towards the card debt. I had been worried that they might do this and had made sure that I went into the bank and specifically asked for the money to be paid into the mortgage acount and not paid into the joint account. The bank then said I had to pay off the card debt before they would accept payments off the mortgage. In order to prevent my property being repossesed I have had to borrow the money from my family to pay off this credit card. Did they have the right to do this?

you took the morgage out in your name so you are responsible for it not him though on the credit card he is not you. may i suggest that if this continues you ditch him cos hes not doing you any favours in terms of money.

also for those who were wondering about the isa situation. going through the t+c's of my isa and this is what it suggested. the banks cannot take the money from your isa cos its a government scheme but they can do if they think you are harbouring money in there so that you dont pay your debt off. eg putting your money into your isa and not paying off anything towards your debt. they will notice this if its all with the same bank/bs.

yes i feel sorry for you having no money for food or rent or bills but your the ones that have put yourselves into the situation no one else.

Numenor

I know this is probably the last thing many people will want to hear, but it's customers' fault (in general terms, not individual) that this practice is being more widely adopted. When people began to claim their bank charges back and have them ruled 'unfair', and try to get debt declared unenforceable just because there's the tiniest error in the T&Cs, it was blindingly obvious that the banks would start using other methods of getting their money back.

angelicmary85

suelees1 wrote: »

IMO this is not particularly helpful advice. Whatever the interest rate is at the moment (and we can again thank the banks for this) it's tax free and who knows what the rate might rise to in the future

Hiya,

sorry for butting into this thread but I've only just come across it.

I seem to remember Martin Lewis giving the same advice to someone on the radio a couple of years ago and if I remember rightly, Martin said that there was no point in having x amount in an ISA when he had x amount on cc. The debate between the caller and Martin did get quite heated though so obviously it's not everyone's choice to take the cash from savings to pay off debt!!

TokMami

Halifax Creditcard has twice setting off against my current account whenever I have credit balance and previously, have set off my loan against my two children saving accounts with my name as the main holder. When I asked the bank, they said it what they do if I didnt have enough fund. I might as well close that accounts soon and open an individual account for my children. This isnt fair because those accounts are my children's savings and now it has been reduced because of my mistake. But now, I am undergoing a CCCS and hopefully will resolve this problem.:mad:

debt_free_me

Hi

I have a current account and loan (£7k outstanding) with barclays and have, touch wood, never missed a payment. Are they still likely to just take money from me?