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

jedi0310

I am now absolutely positive that I will be leaving Lloyds TSB in the next couple of months; however I am concerned that if I leave, Lloyds will call in the loan that I have with them. Has anyone heard of this happening?

Tixy

jedi0310 wrote: »

I am now absolutely positive that I will be leaving Lloyds TSB in the next couple of months; however I am concerned that if I leave, Lloyds will call in the loan that I have with them. Has anyone heard of this happening?

Unlike an overdraft a loan is not repayable on demand. If its a fixed term loan and you keep up with the repayments then you should be fine to move your bank account away. Make sure you set up a DD from your new account straight away so you don't miss a loan payment.

beryl16

Hi,

I have been recently been affected by this and have been appalled by the way I have been treated by my bank. It has left me being physically sick when trying to sort it all out and often leaving my bank in tears. I never knew that this was called anything until my dad told me about it through an email that he had got from Martin Lewis.

I had been paying little amounts every month through a standing order to gradually pay it all off and when I had cleared one of my high priority debts off, that would then go towards my overdraft.

My bank within the space of a week has taken £450 out of my bank account. It all started when I had a letter saying that I needed to clear my overdraft otherwise it would be going to a debt collector. I phoned the premium number about this, with their response was for me to get a loan to pay the outstanding amount. I decided instead to go into my bank, who were more helpful and spoke to someone that agreed that they would be in contact with me to arrange a suitable amount payable per month, this call never came and it issued me with further letters.

This month they took money from my account that was in credit to the overdue one. They sent me a letter a couple of days later to notify me of this. The language in the letter was all pretty confusing and was particularly clear.

I checked my account a week later to find that they had taken £350 out of my account, this was after a similar letter arrived in the post. This left me unable to pay my rent, council tax, utilities, food shopping and petrol to get to work. I still had another 3 weeks before my next pay day and had no means to live on.

I went into the bank and spoke to a rude and abrupt women that just gave me the number of the collections department and ended up speaking to the same person that told me to get a loan out!

A couple of days after they took the £350 out, they referred it to a debt collector and the account was frozen so when I have rung up about it they were only able to give me little information about it as it wasn't technically with them any more (although apparently the collector is just another branch of the bank and is owned by them).

There response was that there was nothing that they could do, and understood the situation I was in. They haven't helped me in the slightest, if anything they have just helped me get into more debt as I can't make ends meet now for this month.

fragglerox

I've just been stung by this off-setting rule even though I have been a loyal customer of Barclays for 30 years! Now I feel like an idiot!

I was made redundant from my job in April and was also diagnosed with 2 lifelong illnesses so it is unlikely that I will be able to work full time again.

I contacted CCCS for help and advice and used the majority of my redundancy money to pay off some priority bills. My Barclaycard, which has less than £1500 on it and was a balance transfer that I was paying off, is my only outstanding debt. CCCS supplied me with a letter template to explain my situation and also a copy of my income/outgoings clearly showing the difficulties I am facing. Barclays would have received this letter on Monday. Today I received a letter from them informing me they have taken a payment from my account to cover the outstanding arrears!

Needless to say I am absolutely fuming and will do what I should have done a long time ago and remove the little remaining money I have and close all of my Barclays accounts.

It disgusts me that they have put at the bottom of their letter "We want to help you through any financial difficulties you may be having".

I receive £65 per week and have so far worked full time since I was 17, that's 30 years. Now I am ill and in hardship and this is how Barclays have treated me and no doubt thousands of others.

I'd like to know which bank account would be my best bet as I'll need to transfer my bill direct debits and will need a debit card or at least a cash withdrawal card. Are there any accounts that provide a free overdraft facility?

Also, I don't want to take this lying down, who should I write to about Barclays?

Thanks in advance for any advice/ideas.

a.ferra

I have recently had a nightmare time, and found it really difficult to find work, I finally found a small job and made an arrangement with my mortgage company (not Nationwide) to pay over £600 when I received my first wage, leaving me £66 for food and bus travel, I knew it was going to be tight, but its the only way to keep my house. I have an unsecured loan with Nationwide which a legal firm (one of those firms that helps with illegal credit agreements) is dealing with, due to an unfair loan agreement.

As I'm unable to get an account anywhere else (due to debt) I had no choice but to give my new employer the account details of Nationwide, I have spoken to Nationwide and even received a new cash card from. I was paid yesterday from my new employer a sum of £666 so I went to a Nationwide branch to withdraw the funds to go and pay my mortgage, I was told by Nationwide that they had taken the whole balance of the account to off set against the loan and frozen the account.

I now have no money to pay my mortgage, no money to get to work and no money to eat?? That was all the money I had, I don't know what to do, I have enough food to last till the middle of next week. Is there anything I can do??

notomonkeys

I don't believe they can do this if the money that they took is to pay off a loan which is in dispute.
Contact the legal firm dealing with your case.
Remind the Bank that the loan is in dispute.

Best Of Luck.

Tixy

a.ferra wrote: »

As I'm unable to get an account anywhere else (due to debt) I had no choice but to give my new employer the account details of Nationwide,

You should still be able to get a new bank account elsewhere - you need to make sure that you ask for a basic bank account. These have no credit check (even people who are bankrupt can open them).

Have a look here (page 5) for a list of them and choose a bank you don't owe any money to http://www.moneymadeclear.org.uk/pdfs/bank_accounts.pdf

debmac181

I have a Lloyds TSB credit card and in April 2010 I entered into a payment agreement, this was due to a significant reduction in my income. Since then I have made the agreed monthly payments well in advance of the payment date.

I have received umpteen letters from Lloyds TSB advising that unless I pay the arrears in full they will commence county court proceedings to recovery the arrears. I have phoned them each time I have received a demand and been told it was an error (approximately 6 demands!!!!) and to ignore it. They confirmed my payment plan was in place and that was being adhered to.

On Monday 27 September, however, they debited my current account to pay off the arrears on my card in the sum of £528, leaving me with 75p in my current account. I immediately contacted them only to be told, yet again, it was an error in that the collections department/customer services department had not liaised. It is now Saturday 2 October 2010 and I am still awaiting the amount debited to be credited to my account. I have phoned the bank daily and have been told each day the money will be credited that day!

What can I do about this error and am I entitled to compensation for such a blatant breach?:mad:

niccatw

jedi0310 wrote: »

I am now absolutely positive that I will be leaving Lloyds TSB in the next couple of months; however I am concerned that if I leave, Lloyds will call in the loan that I have with them. Has anyone heard of this happening?

Tixy wrote: »

Unlike an overdraft a loan is not repayable on demand. If its a fixed term loan and you keep up with the repayments then you should be fine to move your bank account away. Make sure you set up a DD from your new account straight away so you don't miss a loan payment.

Though do check they have done this (moved the DD. They won't cal in a fixed term loan if you're up to date). When I moved from RBS to A&L at the beginning of the year, they transferred all my D/Ds and S/Os except the D/D to my RBS loan. :mad:

katu

I have debts with the following

HSBC
MBNA (formally Royal bank of scotland)
MBNA (formally Alliance & Leciester)
Barclaycard
Capital one

Which banks am I okay to go with?