Help needed regarding debt with Lloyd's TSB

stevie_p1 · 14 September 2010 at 3:03PM

Hello everyone we are after some advice please, I have lost my overtime and as of 6 months ago have had my hours reduced, not good but still better than many other people who have lost there jobs all together.

6 months ago following advice Id read on this website I sent an income and expenditure form to all my debtors and came to an agreement of reduced payments and frozen interest, which was a great relief.

But now Lloyd's TSB collections department have contacted us saying they can only offer this arrangement for 6 months and will now start charging interest on our overdraft and want us to make full payments on our unsecured loans plus pay back the amount we are in arrears, I have told them that nothing had changed with our circumstances but they have just told us to seek advice and that debt collectors acting on there behalf will contact us shortly.

This has left us feeling very nervous and just don't know where to turn, can anyone here please advice us on what our next move should be please.

TIA

Tixy · 14 September 2010 at 8:33PM

Hi

Have you had any advice from any of the debt charities at all? Have you considered going on to a more formal DMP?

Lloyds TSB can often be one of the harder creditors to deal with, if their collectors do contact you then just write back making your offer as you did before (and asking them to reconsider freezing interest).
If they sell the debt on to a 3rd party then again you would need to ask them to freeze interest. it can often be that people have more success getting a DCA to freeze interest easier than the creditor.

Whilst its normal to be nervous providing you are paying what you can afford then there is not that much they can do. They could decide to take you to court (not likely but does happen), but even then if you apply to pay in installments a judge won't make you pay more than you can reasonably afford.