Lloyds TBS / BLS etc

swell_2

Hi,

I have been following these boards for years and did register and post some time ago, but I have forgotten all my details and so have rejoined. I intend to try and use the boards more as I am desperately trying to get out of the huge debt I'm in.

My question initially is this though...

I have a credit card debt with lloyds TSB. It was initially for around £11.5k. I asked for a payment plan and got one paying £115 per month. That finished and unlike other cards, they said they couldnt continue it and that my account needed to be discussed with "another department" to set up another one, but to make token payments in the meantime. They said I'd hear from them in around a month.

I made token payments as suggested - varying amounts from as little as £20 at one point. My statements came with 0 interest, but nobody called me. I liked the fact that I wasn't being charged or having to pay interest, but it un-nerved me that it was all too "loose". I called on a few occasoins over the period of around 3 or 4 months but to no avail until finally, a man agreed a payment plan! He set it up for £83 per month for 6 months freezing interest and charges. I was happy with that as I was pretty sure my situation would be better after 6 months and so I could perhaps have been able to afford usual minimums after that date and therefore aim to build up my credit score again (not for more cards - we would just like to remortgage or move house at some point!)

Anyway, I then received a letter from their solicitor asking for the debt to be repaid. I called them and they told me it was just procedure in order to close my account and to ignore it. Another letter came and I called again, to be told the same, but that I should only respond to a letter from BLS.

I did then call again as I wasn't sure what this meant. They told me BLS are a debt collection agency who would agree a suitable payment plan with me as Lloyds could not do anything else.

Now, much as a payment plan sounds good, I am trying to get my score rectified within the next year or so. I know it will take a good 6-12 months or more of paying everyone on time, not being on a plan etc, so I'm not kidding myself that it will be easy, but I can't cope with the thought that we might not be able to move or redo a mortgage if I don't increase my score! So, I called them to see what it all meant. They lead me to believe that the debt is passed on as I am wanting to pay less than 2% each month. They assured me that it wouldnt not go to court.

I am still very nervous though. Do you think I'm better off finding the money to pay them 2% each month from now? Will the debt being with BLS ruin things more than it being with Lloyds? I'm very confused but know this is going to happen soon and I'm not sure what to do for the best.

I have googled them and realise that BLS is still part of Lloyds, but does that help?

Any advice would be great.

Thanks.

stebiz

swell wrote: »

Hi,

I have been following these boards for years and did register and post some time ago, but I have forgotten all my details and so have rejoined. I intend to try and use the boards more as I am desperately trying to get out of the huge debt I'm in.

My question initially is this though...

I have a credit card debt with lloyds TSB. It was initially for around £11.5k. I asked for a payment plan and got one paying £115 per month. That finished and unlike other cards, they said they couldnt continue it and that my account needed to be discussed with "another department" to set up another one, but to make token payments in the meantime. They said I'd hear from them in around a month.

I made token payments as suggested - varying amounts from as little as £20 at one point. My statements came with 0 interest, but nobody called me. I liked the fact that I wasn't being charged or having to pay interest, but it un-nerved me that it was all too "loose". I called on a few occasoins over the period of around 3 or 4 months but to no avail until finally, a man agreed a payment plan! He set it up for £83 per month for 6 months freezing interest and charges. I was happy with that as I was pretty sure my situation would be better after 6 months and so I could perhaps have been able to afford usual minimums after that date and therefore aim to build up my credit score again (not for more cards - we would just like to remortgage or move house at some point!)

Anyway, I then received a letter from their solicitor asking for the debt to be repaid. I called them and they told me it was just procedure in order to close my account and to ignore it. Another letter came and I called again, to be told the same, but that I should only respond to a letter from BLS.

I did then call again as I wasn't sure what this meant. They told me BLS are a debt collection agency who would agree a suitable payment plan with me as Lloyds could not do anything else.

Now, much as a payment plan sounds good, I am trying to get my score rectified within the next year or so. I know it will take a good 6-12 months or more of paying everyone on time, not being on a plan etc, so I'm not kidding myself that it will be easy, but I can't cope with the thought that we might not be able to move or redo a mortgage if I don't increase my score! So, I called them to see what it all meant. They lead me to believe that the debt is passed on as I am wanting to pay less than 2% each month. They assured me that it wouldnt not go to court.

I am still very nervous though. Do you think I'm better off finding the money to pay them 2% each month from now? Will the debt being with BLS ruin things more than it being with Lloyds? I'm very confused but know this is going to happen soon and I'm not sure what to do for the best.

I have googled them and realise that BLS is still part of Lloyds, but does that help?

Any advice would be great.

Thanks.

I'll answer this in more detail shortly but firstly the bad news. If this has been passed on to a DCA then it will have defaulted and it is extremely unlikely that this big fat D won't sit on your file for 6 years, and make getting credit near impossible!!

stebiz

A bit more detail now. Have you done a credit search to check if you have a default. It is irrelevant that it has not gone to court. A default is just as bad.
If you haven't got a default already you are extremely lucky. I don't think it will make a lot of difference whether you pay 1%, 2% or 10% a month. If Lloyds have closed the account, they are unlikely to reopen it.

I am really sorry to be the bearer of bad news.

swell_2

I was going to do a search the other day, but the cost was £11 so I thought I'd gone into the wrong bit of the website as I thought it was only around £2?? I registered online years ago for one the agencies and now, whenever I go to their website, it remembers that and wants to charge me £5 a month to look at my file.

I will try again. Hadn't really thought about defaults. Some of the cards I have had plans with have finished the plan and then made my card OK again and reported it as up to date (Egg, AMEX). I know that means I am now paying more again, but if I can manage those payments, then I feel better that I'm doing things OK. I have a couple of plans still ongoing that have said the same thing (Halifax and Sainsburys). I also have Barclaycard, who have been really good, but I am wondering now if this is a default aswell.

I guess i should be quick and get the credit details and see if defaults are there. Perhaps if there isn't one, then maybe I have a chance to do something with Lloyds before it gets too far??

10past6

swell wrote: »

I can't cope with the thought that we might not be able to move or redo a mortgage

You can remortgage through your existing mortgage lender with no problems, only if you change mortgage lenders will it create a problem, as this will involve a credit search, your current mortgage lender doesn't carry out a credit search on exiting customer's when remortgaging.

swell wrote: »

I have googled them and realise that BLS is still part of Lloyds, but does that help?

They're Lloyds in house "DCA"

stebiz

10past6 wrote: »

You can remortgage through your existing mortgage lender with no problems, only if you change mortgage lenders will it create a problem, as this will involve a credit search, your current mortgage lender doesn't carry out a credit search on exiting customer's when remortgaging.

They're Lloyds in house "DCA"

Not true if she is looking to borrow more money.

stebiz

swell wrote: »

I was going to do a search the other day, but the cost was £11 so I thought I'd gone into the wrong bit of the website as I thought it was only around £2?? I registered online years ago for one the agencies and now, whenever I go to their website, it remembers that and wants to charge me £5 a month to look at my file.

I will try again. Hadn't really thought about defaults. Some of the cards I have had plans with have finished the plan and then made my card OK again and reported it as up to date (Egg, AMEX). I know that means I am now paying more again, but if I can manage those payments, then I feel better that I'm doing things OK. I have a couple of plans still ongoing that have said the same thing (Halifax and Sainsburys). I also have Barclaycard, who have been really good, but I am wondering now if this is a default aswell.

I guess i should be quick and get the credit details and see if defaults are there. Perhaps if there isn't one, then maybe I have a chance to do something with Lloyds before it gets too far??

Go to quidco or topcashback and sign up for experian. You will probably get a fiver cashback for signing up to their monthly plan. Then cancel before your 28 days are up. The first 28 days are free. You need to check out what is on your file before you can honestly know your next step.

swell_2

Thanks everyone.

yes, If we remortgage, we will need more. To move house, or to do a few necessary things to the current one if we stay. I have also considered seriously tying some debts into the mortgage. I know what a lot of people say about that, but I have calculated that we will be in debt for at least 8 or9 years currently - and that's with a struggle. If it could be tied into the mortgage, it would increase the term in theory, but the repayments would be less and if the mortgage is flexible, we could overpay. The interest rate would also be less. We did try with our current provider a couple of years ago but were declined. It's all just thoughts at the moment though as I know we have no hope at the moment....sadly.

It was experian that keeps saying I am already registered. is there a way round that?

10past6

stebiz wrote: »

Not true if she is looking to borrow more money.

Correct, but the member never stated they were intending on increasing their mortgage, therefore my post is correct

stebiz

swell wrote: »

Thanks everyone.

yes, If we remortgage, we will need more. To move house, or to do a few necessary things to the current one if we stay. I have also considered seriously tying some debts into the mortgage. I know what a lot of people say about that, but I have calculated that we will be in debt for at least 8 or9 years currently - and that's with a struggle. If it could be tied into the mortgage, it would increase the term in theory, but the repayments would be less and if the mortgage is flexible, we could overpay. The interest rate would also be less. We did try with our current provider a couple of years ago but were declined. It's all just thoughts at the moment though as I know we have no hope at the moment....sadly.

It was experian that keeps saying I am already registered. is there a way round that?

I really would forget about adding these debts to your mortgage. It really does get a lot of people into trouble. With experian sign up again but use a different username and email address. I did this.

stebiz

10past6 wrote: »

Correct, but the member never stated they were intending on increasing their mortgage, therefore my post is correct

But they did mention possibly moving:p:D Joking apart we're all here to help. Nobody is right and nobody is wrong:)