Lloyds threatening to default me for bank charges.

ihatelloydstsb

I posted this on CAG already but perhaps this site has a different audience.

Basically I have been training for a new job and not getting paid yet, it takes up all my time. I don't claim benefits (and won't claim them either) and I don't see myself making money for another month or so. I have 0 source of income, literally 0.00 a month. Now a while back some recurring charge on my debit card that I had forgotten about took me over my unauthorised overdraft by 26 pounds. Ok, my fault. I could have borrowed some from my parents to pay it back. By the time Lloyds sent me a letter, it was to demand an extra 84 in charges. I could not have borrowed this. I talk to them a bit and they say basically there is nothing I can do. I then sent a few letters to them about it trying the hardship route but to no avail, I got Lloyds final response and then took it to the ombudsman.

Over a month later the ombudsman gets back to me and says that they have sent my complaint to the bank but will not take any further action and that I should see what the bank say and then send them the final response. But I already sent them a final response?? Anyway a few weeks later, exactly the same "final" letter from lloyds. Firstly should I even bother with the ombudsman now?

Anyway, I get a letter from Lloyds saying
"We recently contacted you with an offer of help, but because we have not been able to come to an agreemnt, we have no option but to take further action" Sorry? Phoning me and telling me I need to pay and that the charges won't stop? That sure was helpful. They did mention a repayment plan, alright, cool, that should tide me over till I get the 1300 of bank charges back over the years when the test case is resolved. And then they tell me since I have 0 income, they won't even discuss that with me, end of.

Anyway the rest of the letter goes "We will now be starting recovery action and will pass the handling of your account to the Bank's collection agents. We intend to register your default with a credit referencing agency" blah blah...

So basically my bank has actually ruined my entire life over what was initially 26 pounds... With 200+ of bank charges added on. Any options or should I just carry on feeling so sick that i want to die...

Thanks for any help

natweststaffmember

Financial hardship claims are about priority debt arrears(mortgage/rent, council tax, utilities) so I can see why they rejected your claim on financial hardship. Not sure why you wouldn't claim benefits either because you are entitled to it. I did because I still had bills to pay and I was eligible(I didn't think I would.....plus fee remission if you file a case at county court level).
To be honest with you on the default issue, I am working on something but as I don't really have anything as yet to report on, I cannot see why you cannot offer them £1 a month(let em wait for the money, lol) with a nice letter stating that you will settle the account on the conclusion of the OFT test case.

And (yourbank on CAG )

ihatelloydstsb

Hmm I will phone them and say that I will pay 1 pound a month and see if they take it this time. Thank you. And the reason I don't claim benefits, is because firstly I am not looking for a job, i have no disabilities or anything and secondly it is just against my moral values and how I was raised.

di3004

natweststaffmember wrote: »

Financial hardship claims are about priority debt arrears(mortgage/rent, council tax, utilities) so I can see why they rejected your claim on financial hardship. Not sure why you wouldn't claim benefits either because you are entitled to it. I did because I still had bills to pay and I was eligible(I didn't think I would.....plus fee remission if you file a case at county court level).
To be honest with you on the default issue, I am working on something but as I don't really have anything as yet to report on, I cannot see why you cannot offer them £1 a month(let em wait for the money, lol) with a nice letter stating that you will settle the account on the conclusion of the OFT test case.

And (yourbank on CAG )

I am interested in this one as well, when it comes to me reclaiming back the charges, not got there yet, but was sent a default notice after just missing one loan payment ever, despite them being supplied with token payment as advised by the CCCS.
Then of course 14 days had not even passed and was issued with a solicitors letter, well they are actually lloyds tsb staff acting as their solicitors, I have sent a letter now to the solicitors in regards of a request for all that information they hold on the account, not a SAR though, this one is free, and they must supply the information by 14 days.

So hope you don't mind me watching this post, cheers.

di3004

ihatelloydstsb wrote: »

Hmm I will phone them and say that I will pay 1 pound a month and see if they take it this time. Thank you. And the reason I don't claim benefits, is because firstly I am not looking for a job, i have no disabilities or anything and secondly it is just against my moral values and how I was raised.

Hi there

I used letter templates as advised from the CCCS to support my case in regards of financial hardship due to mortgage arrears etc, and to pay the token payments.
However, if you check on the national debtline, they have templates to suit your requirements on their website, just click on the area where you live and a list of templates come up.
Good luck.;)
http://www.nationaldebtline.co.uk/england_wales/debt_advice.php#6

natweststaffmember

di3004 wrote: »

I am interested in this one as well, when it comes to me reclaiming back the charges, not got there yet, but was sent a default notice after just missing one loan payment ever, despite them being supplied with token payment as advised by the CCCS.
Then of course 14 days had not even passed and was issued with a solicitors letter, well they are actually lloyds tsb staff acting as their solicitors, I have sent a letter now to the solicitors in regards of a request for all that information they hold on the account, not a SAR though, this one is free, and they must supply the information by 14 days.

So hope you don't mind me watching this post, cheers.

No problems. The FOS look at the view of being reasonable which I why I was saying about simply offer a minimum payment and say when it will be resolved.
Problem is that I want a better solution than that because what has been happening is claim is £900 and debt collection sent for £700 even though the debt is clearly acknowledged as in dispute. In fact, taking court action against you works in your favour as you counterclaim for bank charges.
Lloyds appear to be quite a pain to be honest.

di3004

natweststaffmember wrote: »

No problems. The FOS look at the view of being reasonable which I why I was saying about simply offer a minimum payment and say when it will be resolved.
Problem is that I want a better solution than that because what has been happening is claim is £900 and debt collection sent for £700 even though the debt is clearly acknowledged as in dispute. In fact, taking court action against you works in your favour as you counterclaim for bank charges.
Lloyds appear to be quite a pain to be honest.

Cheers for this.;)

Lloyds TSB are defo a right pain.
We have been banking with them for well over 18 years as joint and even before that as single accounts, and never encountered these problems until my hubby lost his job.
Yet they were quick enough selling products to us lol.

This is the first time we ever had arrears, and there are about 30 demand letters just for missing one payment, they are not at all lenient are they?

ihatelloydstsb

Ok I just got off the phone with collections, they say that they can not accept my offer of 1 pound a month, but I can go into my branch and make a manual token payment of 1 pound, hoorah! The woman said to get an income and expenditure form too and mail it to them, although I have told them that i earn 0 a month lol... But I will fill it in and send it. I just can't believe this... I have been with this bank for 13 years, i've had charges in the past but i always at least had the income to cover them, and the one single time I cannot they beat me into the ground... I really cannot wait for the test case to resolve, hopefully in our favour. But yes, I will see where I can get after I put in writing that I have 0 income but outgoings of 30 a month for my phone bill and 200 a month for their ridiculous overdraft charges.

natweststaffmember

They appear to be very harsh......but they are outsourcing and downsizing and I have to say I hope they never ever outsource their financial hardship cases or make you deal with a call centre overseas simply because the solutions you need to have experience of and not just read from a script.

ihatelloydstsb

Oh and thank you very much, and sure watch this because in the end we are all here to help each other deal with a frankly criminal banking system. It seems that they are worse than high street loan sharks lol... I will let you guys know what happens when I send off the income and expenditure form and get the reply... Is it worth contacting the FOS again?

natweststaffmember

ihatelloydstsb wrote: »

Ok I just got off the phone with collections, they say that they can not accept my offer of 1 pound a month, but I can go into my branch and make a manual token payment of 1 pound, hoorah! The woman said to get an income and expenditure form too and mail it to them, although I have told them that i earn 0 a month lol... But I will fill it in and send it. I just can't believe this... I have been with this bank for 13 years, i've had charges in the past but i always at least had the income to cover them, and the one single time I cannot they beat me into the ground... I really cannot wait for the test case to resolve, hopefully in our favour. But yes, I will see where I can get after I put in writing that I have 0 income but outgoings of 30 a month for my phone bill and 200 a month for their ridiculous overdraft charges.

We probably still got another 12 months on the test case but at least they will have received 12 pounds by then, lol. At least they cannot claim you are refusing to pay anything back, pmsl.