I'm in a mess, help please

mrcow

pure_dead_dopey wrote: »

Please do what has been suggested and i know you are panicing, but try to remember you are still a bank CUSTOMER and they have to do what you ask on your account, the Direct Debit is totally within your control,

The problem is that it's not in her control.

It's not a normal direct debit like you would have with an outside company. It's just two accounts in the same name according to Lloyds, from which they take money from one or the other. Trying to cancel a direct debit won't achieve anything. The pits of it is, if they take the money that isn't there from the current account, then by doing so, they'll also get £70 out of the OP for unauthorised overdraft/transaction fees. They have you over a barrel whilst you have your current account and loan account in the same place.

It's the same if you have a savings account, they'll quite happily raid your savings to pay for debts on a current account without your permission (or sometimes your knowledge) - it's happened before with customers on here.

Their answer to complaints over this is that they are entitled to do so within the terms of the account agreements.

The only solution is to get the bank acccount frozen and get them to take the loan from the new (non LLoyds) account.

Gilgrissom

I cancelled my DD to Northern Rock last month and have just received a letter from them yesterday. I've printed all my other DD details off just now and all my balances on my loans and credit cards so i can start to work out what I am going to do. I haven't got any non priorty DD's left. They all add up to £873.06 which includes my loan (which I will cancel when I get a new bank account) On top of this I have to pay £186 off my credit card and buy food, and pay £42 a month for council tax. My income including tax credits is £1063 per month so it doesn't give me a lot to play with. I will do a proper SOA now

Gilgrissom

Does anyone know anything about this? I'm wondering if my mortgage company would let me pay reduced payments for a while?
http://mortgagehelp.direct.gov.uk/new-action-plan.aspx

Gilgrissom

I've done my adding up wrong :eek:

Gilgrissom

I'd be better off not working at all:eek: That doesn't make sense.

mrcow

Gilgrissom wrote: »

I've done my adding up wrong :eek:

Have you tried Martins calculator? It's very comprehensive.

http://www.moneysavingexpert.com/loans/debt-help-plan

http://www.moneysavingexpert.com/banking/Budget-planning#bplanner

pure_dead_dopey

Surely they can't just ignore the Direct Debit guarantee? Who elected Lloyds God? The DD guarantee is there to reassure bank customers that money won't be taken out of their account if it is not authorised by them, and if it is, it must be put back as fast as possible. Many companies including the one I work for, only trade because we are licensed by the FSA to operate like this, reassuring the customers that their account details are safe with us. FSA takes a dim view of deliberate breaches of the DD guarantee. Offsetting is different, and is a different condition and obviously something that Lloyds would use, but they cannot use a DD in this manner, so I suppose it comes down to what bit of paper you sign. If they are taking essential living expenses by right of offset, I am fairly sure they must pay the money back in, bottom line there are rules to make banks behave in a reasonable manner, its just horrendous that you have to make them obey and they rely on consumers being unaware of their rights Definitely the OP needs to get another bank account and move out priority DDs, then freeze the Lloyds account as fast as possible.

PS I vaguely remember reading somewhere about unethical banking, putting customers in a debit position deliberately by charging interest and charges on charges, if you are in hardship, I'm fairly sure this can also be claimed back.
Gilgrissom, I know you want it all to go away and the last thing you want to do is get into anymore arguements with the bank, but I think I'm trying make you see that they do NOT have carteblanche to stamp all over you, there are rules and they have to eventually stick with them. If everybody ignored the direct debit guarantee, the banks would fail (totally this time).
Hope you've typed a few letters and made a few phonecalls by now!!!

mrcow

Gilgrissom wrote: »

I'd be better off not working at all:eek: That doesn't make sense.

Trust me - you are NOT better off not working! You need to maintain your income and increase it where possible.

How many hours a week do you both currently work?

Gilgrissom

Hubby was made redundant a few months ago, couldn't claim redundancy because was classed a s self employed. I am only working 16 a week but I am also classed as self employed and only earn comission so my wage alters every week

mrcow

pure_dead_dopey wrote: »

Surely they can't just ignore the Direct Debit guarantee? Who elected Lloyds God?

But it's not a direct debit - that's the point.

If the loan was with a third party, then yes, it would be a DD or SO - but if it's with the same bank, then it's not a direct debit.

Lloyds are not the only bank to operate like this. I've seen Halifax do exactly the same thing before.

Even if they can't take the money then and there, as soon as your salary goes in, they'll take their loan payment as a priority to themselves, leaving you no money to pay your mortgage etc with. After of course they have charged you a £70+ fee for not paying the loan in time in the first place - and of course then you'll get £35+ fees for failed DD for your mortgage and council tax etc too - not forgetting of course that your mortgage company will also be charging you a late payment fee of £30+ which they'll kindly add to your mortgage so you'll be paying interest on it for the next 25 years. So by the end of it that £30 charge will be more like £60.

As with all banks, when you've got money, they're happy to mis-sell you anything they like but will turn on you the moment it goes crook. Yes it's unethical, but their argument is always that you were given the T&Cs when you bought the products and haven't abided by them - and you can't really argue with that as it's the truth.

Bottom line is don't get a credit card or a loan with your own bank if there is ever a likelihood that you'll miss payments. If you do, you could end up in a right pickle with your bank account.