lloyds tsb loan FARCE - advice needed please

xcat_girlx

My partner has a loan with lloyds tsb for approx £8500 which he took out in October as part of their attempt to get him to refinance his visa card with them which was badly in arrears

To cut a long-story short, he lost his job and they are refusing to payout on the insurance as it was voluntary redundancy (note this fact was omitted when he took out the loan but that's another matter). If he hadn't took the redundancy, he couldn't have paid the loan on his reduced income anyways as they were going to drop him to a 2 day week.

He's only getting £64 a week JSA and lloyds are refusing to accept a £10 a month offer from him saying they need at least £40. He's got a legal obligation I understand (and a priority) to pay £230 a month on our rent I.e his half. I only get £123 a week maternity allowance and then £31 a week LHA as well. He also has to pay Halifax Visa £10 a month on an agreement he has with them.

So not only are they refusing our offer, they have charged him £80 on to his loan account for missing julys payment. Last month they said he had to extend his overdraft to pay the loan while they processed the loan insurance saying he'd get it all back off them anyways. That was rejected and now they are saying it's an unauthorised overdraft and charging him £20 a day for it.

It's a right mess!! Our baby is due in 2 weeks and we are badly struggling. I've been off work for around 6 weeks as I had pelvic problems and couldn't manage at work hence why I'm on maternity allowance so early.

We have no joint accounts, loans etc and aren't married so am I also right in thinking that they can't ask for details of my income as they tried to do the other day?

Any tips on dealing with lloyds appreciated!!

di3004

xcat_girlx wrote: »

My partner has a loan with lloyds tsb for approx £8500 which he took out in October as part of their attempt to get him to refinance his visa card with them which was badly in arrears

To cut a long-story short, he lost his job and they are refusing to payout on the insurance as it was voluntary redundancy (note this fact was omitted when he took out the loan but that's another matter). If he hadn't took the redundancy, he couldn't have paid the loan on his reduced income anyways as they were going to drop him to a 2 day week.

He's only getting £64 a week JSA and lloyds are refusing to accept a £10 a month offer from him saying they need at least £40. He's got a legal obligation I understand (and a priority) to pay £230 a month on our rent I.e his half. I only get £123 a week maternity allowance and then £31 a week LHA as well. He also has to pay Halifax Visa £10 a month on an agreement he has with them.

So not only are they refusing our offer, they have charged him £80 on to his loan account for missing julys payment. Last month they said he had to extend his overdraft to pay the loan while they processed the loan insurance saying he'd get it all back off them anyways. That was rejected and now they are saying it's an unauthorised overdraft and charging him £20 a day for it.

It's a right mess!! Our baby is due in 2 weeks and we are badly struggling. I've been off work for around 6 weeks as I had pelvic problems and couldn't manage at work hence why I'm on maternity allowance so early.

We have no joint accounts, loans etc and aren't married so am I also right in thinking that they can't ask for details of my income as they tried to do the other day?

Any tips on dealing with lloyds appreciated!!

Hi there

I would try to reclaim on the PPI.

What they may suggest if you do this is to take out a new loan without the PPI, it should be a lower repayment ans the rate should be equal to the original loan or better, they must then refund the amount paid into the first loan of the PPI, plus interest.

For more information on this matter, if you have not done so yet is to post on the PPI reclaim thread here:
http://forums.moneysavingexpert.com/forumdisplay.html?f=169
And for more informarion on reclaiming of PPI, with guidelines and templates here:
http://www.moneysavingexpert.com/reclaim/ppi-loan-insurance

Good luck.;)

dancingfairy

Hi. Firstly he needs to get a bank account as far away from Lloyds as possible as I think they may be able to take his money to pay off their loan ,even if he needs the money for bills.
Secondly I think he needs to write a complaint to Lloyds regarding the fact he was advised to take out a loan to consolidate his credit card debts - I am sure one of the experts will be able to advise which rules they broke by doing this if you post a seperate post asking about it.
Also you said he had to extend his overdraft and are now charging him for it - again I would put this in the complaint letter as well.
If Lloyds don't apologise and come up with something acceptable to you you can take them to the financial ombudsman.
Not sure about you having to give your financial details but am fairly sure you are correct and if you are not linked at all financially then they are talking rubbish.
Your priorities are to look after yourself and your baby, make sure you are getting all the benefits you are entitled to.
Pay your creditors what you can - which it seems like you are doing anyway.
Good Luck with everything
df

di3004

dancingfairy wrote: »

Hi. Firstly he needs to get a bank account as far away from Lloyds as possible as I think they may be able to take his money to pay off their loan ,even if he needs the money for bills.
Secondly I think he needs to write a complaint to Lloyds regarding the fact he was advised to take out a loan to consolidate his credit card debts - I am sure one of the experts will be able to advise which rules they broke by doing this if you post a seperate post asking about it.
Also you said he had to extend his overdraft and are now charging him for it - again I would put this in the complaint letter as well.
If Lloyds don't apologise and come up with something acceptable to you you can take them to the financial ombudsman.
Not sure about you having to give your financial details but am fairly sure you are correct and if you are not linked at all financially then they are talking rubbish.
Your priorities are to look after yourself and your baby, make sure you are getting all the benefits you are entitled to.
Pay your creditors what you can - which it seems like you are doing anyway.
Good Luck with everything
df

Hi agree df, great advice here.:T;)

xcat_girlx

thanks for the help

We spoke to a guy in branch this morning who tried to get the collections department to take a token payment and again they wouldn't. Their answer seemed to be that he shouldn't pay rent etc!!!

We were advised they they'll go through the whole letter sending process and just to call them back everytime and keep trying with the offer. They want 50% payment which we coudnt afford in a month of Sundays! The man in branch suggested moving all the money out of lloyds which we have done and if we want to make a token payment anyways then do as if they try legal action eventually then it would go more in our favour.

He said once it goes to debt collection in a few months then they are more likely to accept a token payment than lloyds loan collections are.

How stupid!!!

Ames

They can't expect you to pay his debts - they're in his name and so he's responsible.

Have you asked for your Housing Benefit to be reassessed since he lost his job? If he's only on JSA and you're on a low income then you should get most, if not all, of the rent paid. Are you getting council tax benefit too?

di3004

xcat_girlx wrote: »

thanks for the help

We spoke to a guy in branch this morning who tried to get the collections department to take a token payment and again they wouldn't. Their answer seemed to be that he shouldn't pay rent etc!!!

We were advised they they'll go through the whole letter sending process and just to call them back everytime and keep trying with the offer. They want 50% payment which we coudnt afford in a month of Sundays! The man in branch suggested moving all the money out of lloyds which we have done and if we want to make a token payment anyways then do as if they try legal action eventually then it would go more in our favour.

He said once it goes to debt collection in a few months then they are more likely to accept a token payment than lloyds loan collections are.

How stupid!!!

Hi there

I wish you luck with Lloyds, we have complained to the complaints dept and received their response in the post today, have a read:

Dear Mr and Mrs XXXXX

26 June 2009

Account number: XXXXXXXXXXX


Thank you for taking time to contact us.

I think it would be helpful if I set out my understanding of your complaint.

. You are unhappy with the service provided.
. You do not feel that we are being sympathetic or assisting you.

I am sorry to hear that you are experiencing financial difficulties and that you are unhappy with the service provided. You should expect the highest level of service from us so it''s disappointing that you feel that we have not provided it for you on this accasion.

We aim to assist customers who are experiencing financial difficulties. I am sorry that you feel we are not trying to assist you and that we are not sympathetic towards your finanical position.

I regret that we are unable to accept your current proposals for repayment as it doesn't meet our repayment criteria.

As we're unable to accept your proposal of £1.00 per month, I have arranged for your account to be transferred to our Consumer Debt Recovery department (CDR). However, before your account is transferred to CDR, we are required to send you legal letters.
Adverse information will also be reported to Credit Reference Agencies.

I feel that this is the best option for you because once your account is with CDR Interest will be frozen and you will be given another opportunity to submit your repayment proposal.
Please make sure you have details of your Income/Expenditure and the other creditors to hand.

I appreciate how stressful this must be for you and apologise if you still feel that we are not trying to assist you.

I hope this fully answers the points you raised with us. Please let me know if there is anything else I can do to help.

If we cannot come to an agreement, I will provide you with the details of the Financial Ombudsman Service so they can consider your complaint independently.

As long as you are happy with the way that I have dealt with your complaint, there is no need for you to reply to my letter. If I have not heard from you by 31 August 2009 I will close my file, although I will re-open it if you come back at any point afterwards.

Your sincerely
Senior officer
Lloyds TSB Credit Operations
Customer Service Recovery - Hove.

xcat_girlx

Ames wrote: »

They can't expect you to pay his debts - they're in his name and so he's responsible.

Have you asked for your Housing Benefit to be reassessed since he lost his job? If he's only on JSA and you're on a low income then you should get most, if not all, of the rent paid. Are you getting council tax benefit too?

We get £31 a week in housing benefit into the bank and then £4 a week council tax benefit which just gets deducted straight off the total bill. On a rent of £460 a month it's barely denting it. The amount we get will shoot up once the baby comes but until then it's very tight.

xcat_girlx

Di3004 - that doesn't surprise me coming from lloyds! Suspect we will probably get a letter like that back but I'm hoping that by sending the small payment and them refusing it that if they ever take OH to court to recoup the money then it will make it fall more in our favour.

dancingfairy

Agree with what the man in the branch appears to have said. You need to keep making token payments (1 pound if that's what you can afford) to prove if it goes to court that you are trying your best.
Apart from complaining I think you may have to wait for them to send it to their collections department and hope that they are a lot more sympathetic.
Good Luck with the baby (and with Lloyds as well)
df

xcat_girlx

Oh and the lovely lady in lloyds collections who I spoke to last week, suggested that since my parents are helping us out if I'm maybe £20 short for food or petrol or whatever that maybe they could contribute and pay his loan payment. !!!!!!?!