**BAD TIMES** Lloyds Bank Student/Graduate Account

hungrystudent

Hey guys,

This is my first post so excuse me if I've posted this wrong...

I applied for student account in 2004 and decided to go with my existing provider Lloyds TSB. I told them I had been accepted at Bournemouth University and will be starting my 4 year Sandwich degree that October. Filled in forms, job done

All went swimmingly, no problems at all. Enjoyed the benefit of the maximum OD, internet banking, Student discounts blah blah blah...up until I reached my 3rd year (2007).
One summery afternoon, I logged onto my online banking and found my STUDENT account had been changed to a GRADUATE account with my overdraft being reduced from £2000 to £1750. So I went to my bank and explained that I still had 1 more year to go to which Mr Bankman say's "Nothing to worry about Sir, the accounts are very similar. We apologise and we will look into it". He increased my overdraft there and then which put the spring back in my step...which was short lived.

A few months later I check my online banking and find the same problem... Overdraft reduced to £1750 but instead of sprinting down to my local branch I clicked the little tab on the left which said "Overdraft". It gave me the option to increase it for a short term which was fine by me as I thought the 'problem' was being sorted.

I carried on doing this every time my overdraft reduced. I also found that I had incurred further overdraft charges for using this facility. (even though it should have been interest free)

Anyway, finished exams and passed with flying colours. I am now finally a Graduate. Found a job, carried on with day to day life and also carried on manually increasing my overdraft...



After I graduated I never really used the account other than a couple of direct debits. I didn't close the account as I felt it was my entitlement to own an 'interest free' overdraft. Apparently, my account was reviewed on 13th September 2009, so I went online again and tried to increase the overdraft to its normal £2000 limit. "PLEASE CONTACT YOUR BRANCH MANAGER" it displayed which scared the crap out of me.

Anyway, arranged to meet my bank manager and she told me my account had been put into collections. This meant that I was over my agreed overdraft limit by £250 along with the huge bank charges that go with it.
I argued my case and they agreed to cancel the charges once I removed my account from collections as there was nothing that the branch could do. With the balance cleared they also agreed to increase my overdraft back to its original £2000.

I paid the £250 that day and waited a further two weeks until I called into my branch again as nothing had been done. Manager lady explained that my credit rating had been affected so Lloyds could not give me the increased overdraft which meant I had lost my £250.

This directly affected my credit card payments as at this point as I had been made redundant and had was also on benefits. I could not afford to keep up any of my payments so I was £250 down, incurring credit card charges, further bank charges on my 'Graduate' account and was also unemployed. My Jobseeker allowance was also swallowed which meant I was penniless!

I wrote to customer complaints and they replied by stating that I was in the wrong and they could not accept my complaint. They did offer to remove £75 pre-notified unplanned overdraft charges but would not accept liability.


I am in real trouble now guys, I am truly in the 'Downward Spiral' as these charges are flying at me from all angles!:mad:

Can anyone help? Has this happened to anyone else?

Any advice would be greatly appreciated

p.s. Apologies for the really long message, had to get it off my chest.

The Hungry Student x

melancholly

erm... i guess i think what lloyds has done makes sense - banks often make a mistake after a 3 year degree and but in this case, they corrected it.

your interest free overdraft isn't going to last forever - every bank phases out the interest free part on a year by year basis. yes it's annoying that they only give you this info when you open the account rather than lots of letters each year, but it is standard. (I make you 2 years post graduation now, so having anything over £1000 interest free is actually doing well compared to many accounts)

i think your best bet is the debt free wanabee board - if you have massive overdraft issues as well as credit cards that you need to pay and a limited income, you're in trouble. if you post all your incomings and outgoing on there, they'll help you to work out where you can save money.

The_One_Who

I think it's automated that after three years your account will change to a graduate one, but you told them your situation and they corrected it. An overdraft is a privilege, not a right (especially an interest-free one!) so it might have been better to ask about why it was reduced. But hindsight is a wonderful thing.

Now you need to figure out what debts you have and how to lower them. As above, the debt-free board will be able to help quite well with this.

hartzou

very long description