Closing lloyds account?

geniegal

Hi just about to go on dmp got phone interview this thurs

question: I have 1500 debt with my bank lloyds. i acnnot pay all these monthly repayments start march. should i close my bank account? will lloyds try to make life difficult

sorry need to know b4 thurs. worried

miss_missy

hi genie is the 1500 overdraft? if so they wont let you close it unless you pay it
however nothing stopping you getting another acount with a bank you have no debts with and just paying a little off the overdraft each month like you do any other debt
hope that helps

pure_dead_dopey

geniegal wrote: »

Hi just about to go on dmp got phone interview this thurs

question: I have 1500 debt with my bank lloyds. i acnnot pay all these monthly repayments start march. should i close my bank account? will lloyds try to make life difficult

sorry need to know b4 thurs. worried

Morning Genie

If you have debt at your present bank, you will have to open a basic account elsewhere, a lot of us on here have basic cashminder accounts with the co-op, no credit checks, no overdradt and no cheque book bur they do have a visa debit card and online banking. Banks can do a thing called offsetting if you have money in an account with them and you default on a cc or loan, they can take all the money in the account without asking or telling you. So you must arrange for salaries/benefits etc to go in your new account as soon as possible. Good luck you've made a good decision and you are dealing with your problems, it will be rough for a couple of months but you will have money in your pocket for the necessities. One more thing, when you set up your new account, move all your priority DDs to the new account and you are set to go.:T

miss_missy

ive just read one of your other post and you state doing a dmp therefore i wouldnt worry about closing the lloyds account but make sure you get a new back account not linked to any of your debts and do this immediately

hope the dmp goes well and ill look for updates good luck

Andy_one_day

Hi

I was in the same sitution, the advice i receieved from the CCCS and people on various forums, was to set up a basic account as you have already been advised, no overdrafts etc etc, the information above has some good choices. Transfer your direct debits to it, for Mortgage, secured loans,etc, if you have them and can afford to pay them, And then when you list your creditors inculde your overdraft with the bank, it just gets added into the plan. If you cannot make payments on the mortgage etc, then talk to the CCCS and they will advise you the best course of action, they are very helpful and put me at ease within miniutes of the call. I was told not to close the account, which without the funds i could not do anyway and let them do it when the plan all went through. Which if recall, it does anyway as part of the plan being put in place. I am sure someone will confirm this for you. I have only been on the plan for 6 months and it is a great relief to start to feel like you are getting somewhere with the problem instead of just treading water.

I had been £2500 overdrawn with the bank for as long as i could remember and this is what i was advised.

Keep posting and let us know how you get on.

Madison

My bank account was with Lloyds when I first ran into difficulty and the started taking a huge chunk of my available balance to pay off their credit card. This left no money to make token payments to my other creditors and caused me to go overdrawn with them so that I could live on the basics. I told them I was arranging a DMP but they didn't care - they wanted their money regardless of my situation.

geniegal

Hi everyone

Thankd for the input. No overdraft, 1k = personal loans and 500 squid = credit card. madison, i am not surprised by your story. last time i went to lloyds for a loan they were positively smug about saying no!

does anyone think because i have personal loans they may delay the process of closing the account in order to make me go overdrawn and charge more?

my fear = i say im closing the account b4 28th feb. lloyds say 'oh you need 14 days notice blah blah. 1st march - i will have withdrawn all my funds by that point so lloyds just create an unauthorised overdraft to cover the 500 debt repayments plus 90 credit card

any thoughts