Lloyds TSB

colonelk_2

Hi,

I was just wanting some advice with regards to dealing with Lloyds TSB.

I have a credit card with them that I couldn't unfortunately maintain the monthly payments due to being made redundant. The next job I got was for half the wage of the previous one, but some money coming in was better than none.

I explained the situation to my creditors and all seemed ok. However, I contact Lloyds TSB in September to say that I can ow increase the payments to £70 a month for a credit card debt. I spoke to the Customer Collections Dept. I spoke to a lady who went through an income and expenditure procedure and said "yes" £70 per month is fine and the payment arrangement is now setup due to start on the 18th November to be reviewed ion April 2010.

I then received a letter dated the 29th September confirming the payment plan, monthly payments and that once the first payment is received any accrued arrears would be written off.

I set up a standing order for the 15th of every month, with the account number and sort code that was given to me twice by the Lloyds TSB collections centre. This payment left my account on the 15th November which I confirmed with my bank.

Two weeks later I received a letter from MHA Collections stating that they want a payment of £730.00 of arrears within 7 days. I contacted them and stated that I have a plan in place, so why has it been refered to them. They stated that they had not received the payment and therefore the payment plan is now invalid. I did explain that the money had left my account on the 15th, but they insisted that they had not received this.

I then checked with my bank again on the following day and the £70 had returned to my account as Invalid Card Number. I contacted MHA again and told them it had been returned. We checked the standing order details and they are correct. So I paid the £70 by debit card immediately.

Received another letter demanding the money again. Contacted MHA again and they are now saying that there is no arrangement in place and there shouldn't have been one setup in the first place. The account is now going to the Debt Collection Dept....which may mean Court.

Just wondering what the best way forward with this is?

Sorry for the long post

Cheers

DVardysShadow

That is thanks because you explained what happened so clearly. I am just a little stuck at the mo to suggest what to do.

colonelk_2

Thanks for the prompt reply...I have the same problem

I think it might be best to see what the Debt Collection department say. At least I have the plan confirmation letter...

Devontrish

Hi Colonelk,
I have been in this situation myself with Lloydstsb...£10,000 credit card bill and £12,000 loan!!!! Don't panic is all i can say, and stick to your guns!! The debt collection dept are ok, although if you are weak they will prey on you!!! I went through CCCS originally to sort my debts out, and the credit card side of things was the easiest to sort out as they accepted payment. The loan was a different kettle of fish though and they bullied me and threatened court action, so i started paying a bit more...and therefore broke my agreement with CCCS who basically wouldn't help me anymore.
However, I now pay £20 on my credit card and £100 on my loan with no interest being added on, but have to deal with a conversation with the debt dept every 6 months or so (re loan). They have sent my details to debt collection on several occasions, at which i said take me to court as i can pay no more...back to debt department and paying the same amount still.
So, do NOT let them bully you into paying more than you can, they won't want the hassel or cost of taking you to court, and if they do the amount you pay will be fixed by the court.
I was told originally to go bankrupt (3 years ago) but i chose to repay my debts as i got myself in this mess...7 months time will see 3 of them gone!!!! Yey!!! Hang on in there, and don't let them intimidate you!!!!!

fermi

Well, I suppose you have proof in writing of the agreed payment plan, so you can at least prove they are fibbing.

Unfortunately even if they agree a plan they can change their mind at any time on such an informal arrangement.

Have they already defaulted you on this account?

colonelk_2

Hi Fermi,

When I last checked my credit report there is a default for Lloyds TSB that shows as satisfactory..

fermi

Well, if they have already defaulted you, then apart from going to court they have done about the worst that they can.

Really you have to just keep making the payments you can afford regardless of their bullying tactics or fibs they may tell. If they are daft enough to take it to court, you can then show you have been acting in good faith, but they have not.

Also I would recommend that you read this:

OFT debt collection guidance - Final Guidance of unfair business practices.

If you need to write again, there are probably a few things in there that it would be good to let them know you are aware of.

Best to deal in writing only as well. Helps to have documentary proof of everything.

colonelk_2

Thanks for the info Fermi, very useful.

brcj

I too have a problem with lloyds. they agreed to a 6 month payment plan . I kept up with the £100 per month they asked for. When the 6 months ended i asked for the the plan to continue as my situation has not improved. They declined my request and said they were passing it on to debt collection dept. This was in October. I have not heard from debt collection, but the credit card services have sent into my Lloyds current account and taken £397 each time. It has now left me with not enough funds to cover utility bills etc. Really dont know what to do. Can only get through to call centres who are unable to help - they just keep saying I cannot go back on payment plan. Problem is hubby is self employed and no guaranteed income and I have lost my job through ill health. Any advice would be great. Im at my wits end

DarkConvict

brcj, banks can take money out of your accounts by 'offsetting' it is strongly advised you switch current accounts to a different bank, such as a co-op cashminder as they are independent and are quick to apply for.

You could raise a complaint with the bank that the credit card debt is not a priority debt and the money that has been taken is to pay for priority debts such as council tax, rent/mortgage, utility bills, fines. They are unlikely to return the funds but the reason i mention it is you must pay priority debts , followed by basic living allowances before anything else

frazerholt

Hi first time on here, i have £1900 overdraft on an account with lloyds tsb and the whole £1900 is charges, i also am £1000 in arrears with my loan with them, i have had a couple of HIGH payment arrangements that i have not stuck to. can anybody plse help with suggestions on what i can do??