Advice Needed Please

Eighteen75

Morning MoneySavers - newbie and first post. :T

I need some helpful advice of any kind as I really dont know where to start, you may need to bare with me on this as its a tad long winded - apologies in advance.

A few years ago, 4 I think, I had a heart attack at 30/31 and this in turn caused me a large amount of time off work. Was unable to repay my loan repayments to Lloyds and in turn started to accrue vast amounts of charges.

A year AFTER this I was informed by telephone call from the bank that I actually had an insurance policy on the loan and, due to my ongoing heart/health problems, I was told to try and apply for the insurance to repay the bank the loan back to the bank in full. Due to my former employer taking so long to provide the bank with my sickness record (almost a year it took them) this then took in total almost 16 months to be processed - I really cant say if I was still accruing charges for this time - I am quietly confident that I probably was.

In the end the bank/insurance policy agreed to pay the outstanding balance of the loan back to the bank - yay happy days - I get a letter telling me that I will be getting 700 pound repaid back to me. The bank then refused to pay me MY money and then used it to pay back most of the charges on my account.

After a couple of hours fighting with them on the phone they agreed to pay me some of it back but only on the basis that I set up an agreed repayment plan for the 1100 quid overdraft that was on my account - at the time I was out of work and 300 and odd quid was ALOT of money so I agreed. So the bank got to keep 400+ quid of my money.

Here we are a couple of years down the road and the bank are still chasing me, I have explained so several people several times why I refuse to pay back the charges, I go over the same story (this one) every time they phone me (which has now been daily since the recent announcement on bank charges and repayments) but they dont listen.

Soooo...my question is....where do I start/go from here.

Any advice/help is appreciated and many thanks in advance.

Also might I add, the overdraft - which is at 1600 quid now - purely exists out of bank charges and nothing else. I have never recieved/spent a penny of this 1600 quid (other than the 300 of my money they so graciously gave back to me)

Eighteen75

Hello? Anyone at all able to help or advise me pls.

Premier_2

Why don't you pay off the bank charges?

You say you explained to several people why you are refusing, but you haven't said why here.

Why did you agree to a repayment plan if you planned to refuse to pay the debt?

chipbeck

Forgive me if I'm wrong.

The way I read it is that charges will have been applied because the OP was behind with his Loan. He then found out that he was insured for the loan, presumably the bank should have known this.

Why should he pay charges if they were a result of something he shouldn't have had to pay in the first place?

Premier_2

chipbeck wrote: »

Forgive me if I'm wrong.

The way I read it is that charges will have been applied because the OP was behind with his Loan. He then found out that he was insured for the loan, presumably the bank should have known this.

Why should he pay charges if they were a result of something he shouldn't have had to pay in the first place?

As I understood it, The OP was the policy holder of the insurance and failed to submit a claim on time (infact not for a year). In that time the OP failed to maintain payments to the bank and so charges accrued.

The insurance presumably only covered the actual loan amount, not charges accrued because of failing to pay that loan back as agreed.

chipbeck

Eighteen75 wrote: »

Morning MoneySavers - newbie and first post. :T

I need some helpful advice of any kind as I really dont know where to start, you may need to bare with me on this as its a tad long winded - apologies in advance.

A few years ago, 4 I think, I had a heart attack at 30/31 and this in turn caused me a large amount of time off work. Was unable to repay my loan repayments to Lloyds and in turn started to accrue vast amounts of charges.

A year AFTER this I was informed by telephone call from the bank that I actually had an insurance policy on the loan and, due to my ongoing heart/health problems, I was told to try and apply for the insurance to repay the bank the loan back to the bank in full. Due to my former employer taking so long to provide the bank with my sickness record (almost a year it took them) this then took in total almost 16 months to be processed - I really cant say if I was still accruing charges for this time - I am quietly confident that I probably was.

In the end the bank/insurance policy agreed to pay the outstanding balance of the loan back to the bank - yay happy days - I get a letter telling me that I will be getting 700 pound repaid back to me. The bank then refused to pay me MY money and then used it to pay back most of the charges on my account.

After a couple of hours fighting with them on the phone they agreed to pay me some of it back but only on the basis that I set up an agreed repayment plan for the 1100 quid overdraft that was on my account - at the time I was out of work and 300 and odd quid was ALOT of money so I agreed. So the bank got to keep 400+ quid of my money.

Here we are a couple of years down the road and the bank are still chasing me, I have explained so several people several times why I refuse to pay back the charges, I go over the same story (this one) every time they phone me (which has now been daily since the recent announcement on bank charges and repayments) but they dont listen.

Soooo...my question is....where do I start/go from here.

Any advice/help is appreciated and many thanks in advance.

Also might I add, the overdraft - which is at 1600 quid now - purely exists out of bank charges and nothing else. I have never recieved/spent a penny of this 1600 quid (other than the 300 of my money they so graciously gave back to me)

Might have misunderstood sorry.

euronorris

Also, he was in hospital for a heart attack.

Paperwork, phone numbers, policy numbers, even the phone, would not exactly have been easy to get hold of, if at all.

Premier_2

euronorris wrote: »

Also, he was in hospital for a heart attack.

Paperwork, phone numbers, policy numbers, even the phone, would not exactly have been easy to get hold of, if at all.

Would that be the bank's fault?

chipbeck

Your avator has arrived Premier.

euronorris

Premier wrote: »

Would that be the bank's fault?

No, of course not.

But it does appear that they had applied PPI to his loan without his knowledge. And then, didn't bother to apply it when they were made aware of his circumstances.

But, my understanding could be incorrect. Am going on limited information here.

Pushing the insurance to one side, I cannot fathom why a bank would continue to apply charges to someone who has been hospitalised by a heart attack. He wouldn't have the ability to magically make the money appear and then send it to the bank?! lol

But, I am happy to hear that the PPI was worth something in this case.

Out of interest, is it possible to get PPI for someone with pre-existing conditions? I've had a search but couldn't find anything. Sorry, off topic I know.

Eighteen75

OK lemme see.....maybe it was poorly worded....seemed ok at the time.

I didnt know I had payment protection - once I did learn of it, it paid the loan off in full.

I refuse to pay the debt because if I had been correctly informed by the bank the claim would have been in considerably earlier and therefore a large percentage of the overdue charges wouldnt have come to pass. (incidentally, I learned of the insurance from a chase call regarding my unauthorised O/D)

I also refuse to pay the debt as, at the time, the charges were deemed unlawful. I have also never seen anything of this "debt". For example had I spent the money, I would pay it back, but its built up from nothing but charges.

I agreed to a repayment plan purely on the basis that I was out of work at the time and the bank were with holding 700 quid of my money that the insurance paid back to me for repayments on the loan and stated they would give me 40% of it only if I agreed a repayment plan.

Anything you feel I have missed or not explained sufficiently dont hesitate to ask..