Loyds TSB Loan

elhell

WE have a joint account with Loyds Tsb and until reciently we had a £1000 overdraft.
We own our own home and my husband's salary is paid in monthly. Recently he was told that our overdraft had to be paid back and we would have to take out a loan with Loyds TSB to do this.
Is this allowed? and secondly since we have little other debt why would our overdraft suddenly be cancelled?

LeeSouthEast

Banks are tightening the reigns in general.

Yes they can recall your overdraft with little or no notice - but you do not have to get a loan with Lloyds to do it. Any funding source would be acceptable - cash, 3rd party loan, family, friends, liquidising some assets etc.

CannyJock

elhell wrote: »

WE have a joint account with Loyds Tsb and until reciently we had a £1000 overdraft.
We own our own home and my husband's salary is paid in monthly. Recently he was told that our overdraft had to be paid back and we would have to take out a loan with Loyds TSB to do this.
Is this allowed? and secondly since we have little other debt why would our overdraft suddenly be cancelled?

You don't have to take out a loan with LTSB, but they are entitled to demand repayment of an overdraft on request. Not very polite of them, but they can do it.

If you need to borrow to repay the overdraft, why not look into a Virgin money card where you can transfer the funds directly to your bank - the deal is 16 months @ 0% for a 4% fee (equivalent to 3% APR). List of cards that allow this are shown here.

Rockahula

I have banked with LLoydsTSB since leaving school in 1989, I have had my ups and downs with them over the years but to be honest, they have been great this last year with my troubled finances. I too was the same as you but then suggested reducing the O/D by £50.00 per month, this is working well with me and I hardly see the money coming off. They will and are obliged to help. Try it what have you got to lose. Thanks

jonesMUFCforever

Did OP actually get a letter from the bank saying the overdraft would be withdrawn or was it ''suggested'' by a bank seller?????????

dickieg

It may be worth seeing the bank manager and tell them if they want you to pay the overdraft off then no problem you have found a bank that will lend the money at a cheaper rate and you are quite prepared to swop all your direct debits, standing orders and the payment of your husbands wages to them. Im not saying it will work but its worth ago.

just_about

elhell wrote: »

WE have a joint account with Loyds Tsb and until reciently we had a £1000 overdraft.
We own our own home and my husband's salary is paid in monthly. Recently he was told that our overdraft had to be paid back and we would have to take out a loan with Loyds TSB to do this.
Is this allowed? and secondly since we have little other debt why would our overdraft suddenly be cancelled?

yes they can demand it back at given point of time, however it depends on a host of things, like how you manage it and also on the fact that how much you use it and if it is really profitable for them to give you that, as ultimately they are there to make money of you, so may be they think getting to take you out a loan is more profitable for them than the overdraft !!

When I started with lloyds they just gave me a £1K overdraft and then from there they increased it to £8.2K, where it stands today, have been in the OD most of the time and even gone beyond that certain times but have cleared it off in chunks too .. so may be they look at your repayment capacity too and also how big a risk you might be to them !!

How ever i woud suggest you to clear it off if you have the money or worst take out the loan and negotiate on the apr with them if possible, with a low monthly repayment and if bargain hard they will take that !!

Hope this helps :beer: