Advice dealing with the devil's bank (Lloyds TSB)

Alpine_Star

zppp wrote: »

Actually, I think that is wrong. Working for a similar bank, we have a special division set up to deal with financial hardship problems, and the letters are sent out proactively. The letters are not payment demands - they often state something like 'we want to discuss your borrowing as trends are showing you are struggling with your finances'. It gives them a freephone number to call. I have known them to have large amounts of flexibility, ie. increasing overdrafts to stop charges, putting arrears onto interest free loans at the end of the borrowing etc.

All of this falls under the Lending Code and CSR.

That might be the case but my point is that a collections letter is a collections letter - and not an offer of assistance - as the-insider is suggesting.

How can I be wrong? You've just drawn the distinction between a payment demand and an offer of help.

zppp

Alpine_Star wrote: »

That might be the case but my point is that a collections letter is a collections letter - and not an offer of assistance - as the-insider is suggesting.

Normally financial hardship units are under the collections team yes. But I don't agree that the letter is not an offer of assistance. I work for a different bank with a similar setup, and have seen the letters sent to customers, and they are not letters demanding payment. They simply suggest the customer may want to contact the bank to discuss their options.

This is separate to collections letters, which get reeled off automatically requesting repayment. I suggest that the OP calls them if they have had this letter, as they may be able to do something proactive.

Alpine_Star

zppp wrote: »

This is separate to collections letters, which get reeled off automatically requesting repayment.

Yes I know.

natweststaffmember

zppp wrote: »

Actually, I think that is wrong. Working for a similar bank, we have a special division set up to deal with financial hardship problems, and the letters are sent out proactively. The letters are not payment demands - they often state something like 'we want to discuss your borrowing as trends are showing you are struggling with your finances'. It gives them a freephone number to call. I have known them to have large amounts of flexibility, ie. increasing overdrafts to stop charges, putting arrears onto interest free loans at the end of the borrowing etc.

All of this falls under the Lending Code and CSR.

What is CSR?

Alpine_Star

zppp wrote: »

Normally financial hardship units are under the collections team yes.

So does that mean that potential cases of hardship are flagged up at the point that the cases go to Collections? I'd be interested to know.

The reason I ask is that banks are required to pro-actively offer assistance when someone is''heading towards'' financial difficulties. But I would imagine that financial hardship would already have been reached by the time it went to Collections.

Certainly one of the criteria of financial hardship in the waiver included incurring fees to the value of £500 or more in a year - rather than not actually paying the fees - as would be the case if it got to Collections.

zppp

natweststaffmember wrote: »

What is CSR?

Corporate Social Responsibility

zppp

Alpine_Star wrote: »

So does that mean that potential cases of hardship are flagged up at the point that the cases go to Collections? I'd be interested to know.

The reason I ask is that banks are required to pro-actively offer assistance when someone is''heading towards'' financial difficulties. But I would imagine that financial hardship would already have been reached by the time it went to Collections.

Certainly one of the criteria of financial hardship in the waiver included incurring fees to the value of £500 or more in a year - rather than not actually paying the fees - as would be the case if it got to Collections.

The bank I work for has an internal collections unit which has a financial hardship/assistance unit - customers trigger in and out of them depending on the state of their accounts.
This is prior to the debt recovery stage with external agencies, and a large percentage of people pay off their debt, and their account is returned to normal.

Regarding pro-actively offering support, the bank I work for has intelligent systems, checks and balances in place that triggers a letter to the customer offering financial assistance if it spots warning signs. (Which by the way I don't know) This includes account profiling.

natweststaffmember

zppp wrote: »

The bank I work for has an internal collections unit which has a financial hardship/assistance unit - customers trigger in and out of them depending on the state of their accounts.
This is prior to the debt recovery stage with external agencies, and a large percentage of people pay off their debt, and their account is returned to normal.

Regarding pro-actively offering support, the bank I work for has intelligent systems, checks and balances in place that triggers a letter to the customer offering financial assistance if it spots warning signs. (Which by the way I don't know) This includes account profiling.

How much is the trigger for collections(if you know)?
That does sound like a load of crap with regards to systems. RBS Group have daily printouts and the branches use those printouts to get people to take out loans so that is not entirely the way a bank works. How does collections differ from Financial hardship cases since to trigger collections may well be a cause of financial hardship?

CSR btw is imho corporate BS(I don't need to give you the definition of BS ).

jenniechz

If you had contacted Lloyds when you first realised they would probably have refunded any charges for you, if it was the first time. But once the charges have been applied to your account, it becomes more difficult for the branch staff to refund and it has to go through other means.

Lloyds also offer text alerts and internet banking to help you with the daily banking, along with allowing you upto 3pm to pay in money before deciding on allowing a direct debit/standing order to be paid.

Sticking your head in the sand does not help, it just looks like you are ignoring it. Speak to collections and they will help you anyway they can, wether that be delete some charges, stop more charges, arrange payment options etc etc. Lloyds have loads of options as well as some of the other banks.

Alpine_Star

zppp wrote: »

Regarding pro-actively offering support, the bank I work for has intelligent systems, checks and balances in place that triggers a letter to the customer offering financial assistance if it spots warning signs. (Which by the way I don't know) This includes account profiling.

I don't believe this for a heartbeat. And as the bank's employee it's depressing that you do.