Bank Account - Lloyds TSB news for existing account holders going through bankruptcy

brighter_side_of_life

Hi
Just thought I would share this with you as it may be useful for some.

Prior to my bankruptcy (June 2009) I had 2 accounts. One with the Nationwide (2000 plus overdraft, credit cards etc) and 1 with the Lloydds TSB (no overdraft, no credit card etc).

On the day I was made bankrupt I told my OR about the bank accounts (both were mentioned in my petition) and asked if it was ok to keep my TSB account. He said that as I had no money in it and kept it in good order he had no interest in it. He suggested I ring the TSB and ask them if I am able to keep it etc.

I rang the TSB straight away and the lady at the call centre put me through to the local branch where my account was held. They were really nice and said because I was an existing customer (no credit cards or money owing to them) they would allow me to keep my account, although it would be downgraded to a basic cash account with a cash card for the time being. They explained they only do this for existing customers, not new ones who are bankrupt.

This meant my wages and benefits could carry on being paid in and my direct debits were not affected. :T

I hope this helps some of you out there worrying about their accounts.

Bankruptcy is a rocky road and thank goodness for this forum and all the lovely people who offer so much support. Its a lifeline in dark times.

My bankruptcy has been fairly straight forward, my file now passed to RTLU. The car I had on finance will be repossessed shortly (bit of a nuisance) but couldnt afford the finance anyway (although wasnt in arrears :mad:). Its a clause in their T&C that they wont allow bankrupts to keep the cars. Still, I have got a little run about - reliable one and the OR is happy for me to keep this as I need it for work and is less than £2000.

I hope this helps some of you.

thanks and good luck in your journey.

tigerfeet2006

Sounds like good news. I just hope they continue to be OK. Keep us updated as to whether it all continues to run smoothly.

So_Sad_Angel

Hi Tiger...hope you are OK Hunni.

Actually would be interesting to get a definitive on whether the LTSB are relaxing the rules on their basic accounts for existing customers.

Angiexx...LOL not that wild horses would get me through the LTSB doors!!:mad:

tigerfeet2006

Bearing up under a lot of strain at the moment. But hey! life goes on and there are more worse off than I.

Hope you are well.

PS: sorry for the hijack Brighter

PPS: love your user name

fatbelly

I believe the decision on whether the bankrupt can carry on with a LTSB account (as long as the OR is OK with it) is made by the local branch. In your case they were helpful, and my local one is too. But it would be good if this were a national policy for Lloyds.

So_Sad_Angel

tigerfeet2006 wrote: »

Bearing up under a lot of strain at the moment. But hey! life goes on and there are more worse off than I.

Hope you are well.

PS: sorry for the hijack Brighter

PPS: love your user name

Hmmm reminds me of Eric Idle..I agree good username Brighter


Had a few days off MSE...will send you a PM....I`m sure Brighter does want to read us ladies nattering:D:D

So_Sad_Angel

Hey Tiger....your inbox is full Sweetie.:D:D

tigerfeet2006

Tell me about it :rolleyes:.

Will go and sort it.

So_Sad_Angel

fatbelly wrote: »

I believe the decision on whether the bankrupt can carry on with a LTSB account (as long as the OR is OK with it) is made by the local branch. In your case they were helpful, and my local one is too. But it would be good if this were a national policy for Lloyds.

I agree.....the Banks need `solvent` customers even more now. Whilst an undischarged BR account may not earn the Bank much in year one ...that customer will be a ideal potential for cross selling opportunities in the future.

...& IMO its not like the LTSB to miss an opportunity !

Martin1892

I have a Lloyds TSB account which I used periodically around 3 years ago. Ironically, due to my poor credit rating, at the time they would only give me a cash card, not a visa debit. I stopped using it around 3 years ago but left a nominal balance in there (around £30). 4 months before I went BR LTSB sent me a visa debit card. When I went BR i told the OR about the account and I was told that it was ok to keep it. LTSB have kept it open. I havent dared to put any more cash into it or use it at all in case it flags up a problem with the branch.

Im due to be discharged within a month so im going to wait until then to resume full use of the account, just in case the OR has any ideas about shutting it on me.

Oh i should just add, I never owed LTSB anything. CC or overdrafts etc.

Tracy_in_the_house

I went banqrupt 9 years ago, had 2 current accounts & 1 loan with lloyds tsb at the time & 1 credit card (£1000). Loan was included in with all the debts as was the overdraft/ debt on 1 current account & the credit card.

They let me keep the current account that was empty for wages/ bills etc and just changed the debit card to cash point card. When my time was up they gave me a debit card for 6 months (to prove myself) then offered me another credit card with a £150 limit which helped me improve my credit rating. Im still with them now as they helped me out so much.

Going bankrupt was actually one of the best decisions we made. And we really have not suffered any of the ill effects we thought we would have.