Lloyds TSB Loans & Overdraft can they be enforced

nuttycrew

Hi, we need some help and advice please.

Two years ago Lloyds TSB closed us down we had a limited company bank account and they shut us down.

Ever since we have been trying to get Lloyds to tell us why they closed us down and they wont reply other than it was a commercial desicsion.

We have been asking for paper work from them and they have not been able to provide it, we had two loans, an overdraft and a credit card with them.

We also had a personal gurantee to the bank for £25,000

The bank cant find any paper work for one of the loans so as they cant priove we had signed this can they still enforce it and claim it from us without proof.

Also the overdraft was not signed as we did not agree to it, can they still enforce this

We also asked the bank two years ago to freeze the interest and now they have put it all in the hands of solicitors they say we owe interest on the debt now as well, can they do this since we asked for eth interest to be frozen so the debt did not get any bigger.

we were also told we had insurance to cover us for the loans and overdraft if the company folded and it also covered us for health reasons also, we did pay for insurance as it was added to the loans, but when the company was shut down they did not refund any insurance as they did do before when we had paid off loans early or started new loans, we have never been given paper work from the bank about these insurances so we dont know if what we were told was correct or not.

I see people on here ask about cca and a SAR what ar ethese and would they benefit me and how do i go about doing them.

We have asked Lloyds TSB to provide copies of all emails, faxes and letters to us and from us held on file for 2007 to 2009 and they have not come up with the paper work so i take this as refusal to provide.

But most importantly can they enforce a loan and an overdraft that was not signed for a loan that they cant provide signed agreements for ?

Ive looked on this site and they say if you have not signed for any debt it cant be enforced is this correct ?

www. tameside.gov.uk/debthandbook/creditdebts

Any form of help would be a great help, i cant believe that after two years of constant letter to Lloyds they are still refusing to supply paper work or tell us why they shut us down.

How it all started was from the bank manager saying we cant increase your overdraft any further but would hate to return payments, we wrote to them saying if you pay what cheques we have made out why should we pay money in to you, if you are closing us down can you advise what we do next and how we go about it, we never had a reply from the manger at all and it all went belly up after that, we wrote to our manger several times asking to make an official complaint about her and wanted to know who we complaint to she refused to reply and supploy details, we wrote again saying as you are acting as shadow directors we cant proceed with our company please advise what you wish us to do or what other alternative funding options is there

we also also what we need to do to move banks to anoth bank and she refused to respond to all these questions is this not negligence ?

Please HELP

Richard

Tixy

It would be a good idea to do a full subject access request. It costs £10 but ensures you get copies of everything, loanss, agreements, insurance etc. If you haven't done this as a formal request and paid the fee then they haven't actually refused to provide them.

An overdraft is not subject to a CCA.

No creditor has to agree to freeze interest. They will sometimes in certain circumstances but cannot be forced to.

How much do the debts total? Did you give each give £25k guarantees or is that the amount between you?

nuttycrew

I have never done a formal request with the £10 it was a joint guarantee for £25,000 that either person had to pay to that amount not bother of us the maximum is £25,000, i think they total around £43,000 now with interest. If one person failed to pay and had no money then the other person would be liable for the £25,000

What is teh law as far as an overdraft that is not signed, plus the interest rates charged on the overdraft were higher than agreed to in a letter from the bank, can we get them to repay all interest over paid for all the years it was wrong ? if they cant provide signed copies of a the loans where do we stand with that also ?

Richard

Apples2

nuttycrew wrote: »

if they cant provide signed copies of a the loans where do we stand with that also ?

In the brown stuff still. Forget that idea, it's a non starter.

zppp

For the loan documentation, under consumer credit law the McGuffick v RBS case ruled that an original agreement can be reconsituted without signature.

Secondly for overdrafts, they are defined as revolving credit facilities under the CCA 1974. See this link for further explanation;
http://www.consumeractiongroup.co.uk/forum/showthread.php?31515-CCAs-and-overdrafts
No CCA form is required.

For joint account holders, you are jointly and severally liable for the debt.

nuttycrew

so we dont have a leg to stand on then

nuttycrew

what about the terms of the overdraft that was not signed and agreed to being broken by the bank for charging us more interest than we had in writting in a seperate letter from the bank

antrobus

nuttycrew wrote: »

Hi, we need some help and advice please.

Two years ago Lloyds TSB closed us down we had a limited company bank account and they shut us down... We have been asking for paper work from them and they have not been able to provide it, we had two loans, an overdraft and a credit card with them. We also had a personal gurantee to the bank for £25,000... ....

I'm assuming here that this lending as all in the name of the limited company, with the directors providing a personal gurantee of the company's debts. In which case the question would be; what happened to the company? Presumably an administrator or receiver was appointed and the company later went into liquidation?

Not sure of what the answer is, but I'd make the following points:-

* CCA won't apply to any of this as they're business transactions

* Unless the company still exists and you are still it's director, then you might not be in a position to challenge anything regarding any contacts entered into (or not as the case may be) by said company.

* Presumably your position is that the bank has/intends to collect on the personal guarantee provided, and it's the enforcement of that particular deal that's the real issue?

paddyrg

nuttycrew wrote: »

what about the terms of the overdraft that was not signed and agreed to being broken by the bank for charging us more interest than we had in writting in a seperate letter from the bank

If you used the overdraft, they will have a pretty decent case that you accepted the terms.

jonjamie1970

Did you borrow the money from Lloyds, the O/D and the loan ?

nuttycrew

Yes all lending is in the name of the Limited company, administrators or receivers were never appointed we asked the bank for advce as to what we should do and they refused to give the advise, we asked if they would be appointing receivers and again they refused to give the advise in the end we just let the company get struck off at companies house it was only when the company was struck off that they started to get heavy with us as indiviuals.

yes, the issue is the persoanl gurantee being collected upon, but we were lied to as we were told the business had insurance for which insurtance premiems were collected from us at the start of the loans, they said these insurances covered us for the business getting in to financial difficulty and for us personally for health reasons and if anything hapepned all loans and the od would be paid off in full,

We were never given copies of any loan documents or insurance documents and now Lloyds cant find them to provide proof we signed them

Both loans and O/D was from Lloyds TSB correct.

How a bank can say we wont present any more cheques and then refuse to give finacial help and advise when we asked for advise as to what we should do and how we can proceed and if we can move banks to get the funding re paid be legal i dont know, if teh bank had replied to us regarding all this we would still be in business with them today with teh same company and in fact the borrowing would be a lot less now.

All they said to us was it was a commercial descisoion how they can say then when both loans were being repaid at double the agreed rate for the last two years i dont know, they said we were not a secure company !!!