Debt spiral due to account charges :s

eonone

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Hi

Im looking for a little advice as for the past 7-8 months I have been struggling with debt. Mainly due to spreading finances to thinly but also due to Llyods TSB bank charges. Basically I have been in a spiral of paying the charges one month which doesnt leave me enough to pay bills etc and therefore paying charges the following month I tried cancelling direct debits and paying them when I had the cash to stop the £35 returned dd charges, but this only meant I mossed payments and have occured a default with Black Horse (pay monthly on sofa) a default with my credit card - Mastercard, and a summons for Council tax.

I have phone the bank a few times asking them to step the penalties at least so I can get out of this vicious circle but they always tell me they cannot help and offer me a 'Refinancing loan' (what is this exactly?) which encompasses my overdraft (£2500) and my credit card (£5000) but they will not touch the penalties...

What advice can u give me to stop the circle?

lynzpower

Hi there :hello:

Right first point of contact is https://www.consumeractiongroup.com/forums which will tell you how to claim back your unfair banking charges. Ive had some back already, and I am moving onto taking LLoyds on. INcidentally, thier charges have dropped to 6.50 I noted last night ( bounced last month- gutted)

Second, stick up a SOA and lets see how we can find you some spare money see southern scousers first time posters

lynzpower

refinancing loan is a consolidation loan AVOID AVOID AVOID!!

fivemice

I was offered a refinancing loan too, oh yes, jolly good idea Mr.Bank, I'm in debt, struggling to get out of it, not paying what I already owe so yeesssss, offer me more!! :rotfl:

EagleGreen

Getting charges back from banks .. can you claim back only charges for failed payments? I haven't failed to make any payments but the bank does charge interest on my overdraft. Can I claim that back?

lynzpower

Nope we all have to pay the interest.

eonone

Thanks for advice people, firstly whats a SOA?

Also has Lloyds TSB changed their charges to 6.50 then as mentioned above?

Any other ideas?

Im mostly worrying about if I attempt to get my penalties back (of which must go into the 1000 pound mark) that they will close my account and I will be left having to pay 5000 credit card and 2500 overdraft in one go.

CLAPTON

soa is a statement of affairs
read this very useful thread by southern scouser

http://forums.moneysavingexpert.com/showthread.html?t=107280

which is anyway a sticky at the top of this board.

moongarden

eonone wrote:

Thanks for advice people, firstly whats a SOA?

Also has Lloyds TSB changed their charges to 6.50 then as mentioned above?

Any other ideas?

Im mostly worrying about if I attempt to get my penalties back (of which must go into the 1000 pound mark) that they will close my account and I will be left having to pay 5000 credit card and 2500 overdraft in one go.

you could open a "basic bank" account with another bank and then deal with your existing bank as a separate debt.

a basic bank account is an account with no credit facilities designed to help people with low credit scores access bank services. if you search on here you will find more info on that.

eonone

Another question...I intend to send the dpa letter to Lloyds to find out exactly what has been charged to my account over the last 6 years (approx 2500)

However having a 2500 overdraft, could this mean that the possible payback will be soaked up by the overdraft in my account?

lynzpower

well, it would pay off the overdraft if thats what you mean?

Depends how big the OD is really my refunds will give me a few hundred left over for another debt.