Lloyds loan - this feels odd

papervolcano

Hi all,

I'm looking for some advice with regards to a £5000 loan (plus PPI...) I took out from Lloyds in 2007.

I took out the loan on the advice of the bank adviser to repay my overdraft and fund my master's degree. I already had a loan from 2005 taken out to fund my undergrad studies, so that loan was repaid using the new one as well.

I was repaying £120-ish a month until I got into finanacial difficulties in 2009 - my flatmate was unemployed and a bit of an !!!!, so I ended up paying all of the rent (he ended up skipping out and leaving me with a £500 red-notice council tax bill...). I spoke to Lloyds to reduce my repayments to a more manageable £60 - this took quite a bit of fighting, but they ended up accepting it.

Skip forward to last year - I spoke to Lloyds in the spring to step my payments back up to £90ish to start with. Again, they weren't happy that I wasn't paying the full £125, but frankly, I couldn't afford that yet.

I started getting hassling calls from them in September/October and spoke to someone in their Indian office - this was *incredibly* garbled, and to be honest, I've no idea what she was proposing, or if anything I said got through. She didn't manage to update my address.

I was happy to start paying the £125, so I told her that and updated my DD from my other account to pay £200 into my Lloyds account, in order to cover any other random charges Lloyds like to demand.

Because I'm now just paying off the Lloyds account, I don't check it (I know...). I assumed that because I was paying in £200 a month and had updated my loan payment to £125, that it should tick along smoothly.

So it confused me when I checked it today to find out that apparently I didn't have a loan with Lloyds, that I had £700 available in my account (although that's to the bottom of my overdraft, so 'available' might be more accurate) and that although my account has a 'with collections' flag on it, when the woman I spoke to tried to transfer me through to collections to see if I they knew what was up, their automated system wouldn't pass me through as my account wasn't with collections.

This seems a bit fishy to me. The loan term was 60 repayments - I sincerely doubt that I've paid it off! But neither of the people I've spoken to at Lloyds today think I owe them anything other than the balance of my overdraft.

Does anyone have any idea what might be going on here? I'm concerned that they might have sold my debt off to some random company (though as I've been making regular, if low, payments - I don't know if they can do that?) and because the woman I spoke to in India didn't update my address, that I've missed an important letter. Thing is, the lady I spoke to today looked through everything they've sent to me since the summer, and didn't see anything that suggested such a course. I also doubt the woman I spoke to in India would have the power to delete my loan, and that's the only time I could concieve something could have messed up.

I don't want to press Lloyds too far in case they suddenly demand a ton of money - but equally, this is a bank. If I don't speak up, they'll undoubtably discover this on their own terms and demand two tons.

Any ideas?

Mischa8

1. Where is your original loan agreement? ie paper copy.
2. When is the payback date, period, ie is it 60 months etc?

I personally feel you have been a bit foolish when it comes to not seeing a Lloyds specialist at a branch and asking for above information. They can supply you at the touch of a button with all above info and who you spoke to.

It does sound garbled and messy. But Lloyds should put you right. I think a sit-down chat is in order. They're not that scary honest!

Mischa8

papervolcano wrote: »

Hi all,

I'm looking for some advice with regards to a £5000 loan (plus PPI...) I took out from Lloyds in 2007.

I took out the loan on the advice of the bank adviser to repay my overdraft and fund my master's degree. I already had a loan from 2005 taken out to fund my undergrad studies, so that loan was repaid using the new one as well.

I was repaying £120-ish a month until I got into finanacial difficulties in 2009 - my flatmate was unemployed and a bit of an !!!!, so I ended up paying all of the rent (he ended up skipping out and leaving me with a £500 red-notice council tax bill...). I spoke to Lloyds to reduce my repayments to a more manageable £60 - this took quite a bit of fighting, but they ended up accepting it.

Skip forward to last year - I spoke to Lloyds in the spring to step my payments back up to £90ish to start with. Again, they weren't happy that I wasn't paying the full £125, but frankly, I couldn't afford that yet.

I started getting hassling calls from them in September/October and spoke to someone in their Indian office - this was *incredibly* garbled, and to be honest, I've no idea what she was proposing, or if anything I said got through. She didn't manage to update my address.

I was happy to start paying the £125, so I told her that and updated my DD from my other account to pay £200 into my Lloyds account, in order to cover any other random charges Lloyds like to demand.

Because I'm now just paying off the Lloyds account, I don't check it (I know...). I assumed that because I was paying in £200 a month and had updated my loan payment to £125, that it should tick along smoothly.

So it confused me when I checked it today to find out that apparently I didn't have a loan with Lloyds, that I had £700 available in my account (although that's to the bottom of my overdraft, so 'available' might be more accurate) and that although my account has a 'with collections' flag on it, when the woman I spoke to tried to transfer me through to collections to see if I they knew what was up, their automated system wouldn't pass me through as my account wasn't with collections.

This seems a bit fishy to me. The loan term was 60 repayments - I sincerely doubt that I've paid it off! But neither of the people I've spoken to at Lloyds today think I owe them anything other than the balance of my overdraft.

Does anyone have any idea what might be going on here? I'm concerned that they might have sold my debt off to some random company (though as I've been making regular, if low, payments - I don't know if they can do that?) and because the woman I spoke to in India didn't update my address, that I've missed an important letter. Thing is, the lady I spoke to today looked through everything they've sent to me since the summer, and didn't see anything that suggested such a course. I also doubt the woman I spoke to in India would have the power to delete my loan, and that's the only time I could concieve something could have messed up.

I don't want to press Lloyds too far in case they suddenly demand a ton of money - but equally, this is a bank. If I don't speak up, they'll undoubtably discover this on their own terms and demand two tons.

Any ideas?

Sorry - didn't read - depending when exactly in 2007 this was taken out then you have at a guess another year to pay off the loan (as it was 60 months).

I would guess with the lower payments you've been making maybe the term/length of your loan has been increased.

Really as I said before, no more telephone calls with the bank - I find although sometimes helpful a face-to-face chat with them *in person* helps far more.

paddyrg

I doubt the loan has vanished outright, so openness and talking is the best plan :-)

jonesMUFCforever

I think the bank might have sold the debt on - so expect correspondence from a debt collection agency very soon.

lawrie28

What does your credit file say?

mrcow

You took a loan out with PPI. Did you specifically ask for the PPI? Or was it crowbarred upon you?

If the latter (which they were shocking for), then LLoyds can and will refund it (whether you've beeen paying the repayments exactly to schedule or not is irrelevent).

di3004

Hi there

Have you also tried posting on the debtfreewannabe thread as well, where there is many in hardship positions, check it out here if you have not yet, hope it gets sorted soon.
http://forums.moneysavingexpert.com/forumdisplay.php?f=76