Help Please - Lloyds taken savings for arrears.

daphnemoon

Hi there,

I have been in an agreement with Lloydstsb for 6 months, they didnt stop my interest but let me make lower payments each month against a loan. I called following a letter last week to re-set up another 6 months agreement and confirmed that the financial statement was unchanged. The next day I received a call and was told the previous set up had not been carried out and there were no notes on the account to show I had called.

On my financial statement I clearly showed a £40 a month repayment of car insurance to my father (he loaned me the money) and this was accepted by Lloyds. I named my savings account - Car Insurance Repayment Account to show what the money was for.

I looked online today and have found that Lloyds have taken almost £200 and left £50 (which I have now moved into my heavily in overdraft current account) from the account on the same day as the second call.

Basically - I am going to call them tomorrow as I've been told I need to speak with collections. Do I have any rights here? They have been told that I have Mental Health issues, and really as responsible lenders they should never have given me a loan given my erratic spending habits.

Can they just take money especially as it was clear what it was for and it was on the financial statement?

Thank you for any help - I am sat crying my eyes out at this because now I can't pay my dad back and I'd managed to save almost half the amount up over 6 months.

Regards

Daphne

FTW

daphnemoon wrote: »

Hi there,

I have been in an agreement with Lloydstsb for 6 months, they didnt stop my interest but let me make lower payments each month against a loan. I called following a letter last week to re-set up another 6 months agreement and confirmed that the financial statement was unchanged. The next day I received a call and was told the previous set up had not been carried out and there were no notes on the account to show I had called.

On my financial statement I clearly showed a £40 a month repayment of car insurance to my father (he loaned me the money) and this was accepted by Lloyds. I named my savings account - Car Insurance Repayment Account to show what the money was for.

I looked online today and have found that Lloyds have taken almost £200 and left £50 (which I have now moved into my heavily in overdraft current account) from the account on the same day as the second call.

Basically - I am going to call them tomorrow as I've been told I need to speak with collections. Do I have any rights here? They have been told that I have Mental Health issues, and really as responsible lenders they should never have given me a loan given my erratic spending habits.

Can they just take money especially as it was clear what it was for and it was on the financial statement?

Thank you for any help - I am sat crying my eyes out at this because now I can't pay my dad back and I'd managed to save almost half the amount up over 6 months.

Regards

Daphne

Set up an account at another bank unaffiliated with Royds, and use that account instead - that'll prevent them from taking any more out.

Then, lodge a complaint with Royds, and if they don't respond positively, take it to the Financial Ombudsman Service - who'll charge Royds £500 for the privilege of investigating.

tommytynan123

Hi there
I wouldn't say I was an expert on MH issues but I have spent the last 9 (yes 9) years working with the MH teams, Consultants etc etc following a sibling death. My little family was broken and mending is very slow. My little help is:
a. Move accounts now ! I moved to Think Bank (setup years ago for those with snags getting a High St a/c) and they are fab. Yes it costs about £15 pcm BUT that is all you will ever pay. If by chance a DD can't be met (usually an admin error) there is no more charge. Its happened to me twice in 4 years.
b. Do not do this alone. Have you got a CPN ? If not see your GP - explain the pressure - self refer or via GP for urgent appt with CPN etc. The CPNs can't do the work but they will know who can.
c. Don't cry. You are bigger than any of these wonderful banks. Life is a mouse's wheel at times but eventually you get to step off.

RAS

It is called off-setting and it is legal, unfortunately. You need to set up a new basic bank account with a bank that has no relation to Lloyds and move any savings into that. Or set up an ISA.

alamaya

Just wanted to say i have had problems with Lloyds and denying phonecalls in the past.
Got told i could have a payment plan when i lost my job and within a week told i need to pay it all, the first phone call had never happened and they dont do plans.

nice eh!. Wouldnt mind them not doing plans but come on was the first call a complete and utter lie then.

SAM147_2

Everything in writing in future too Daphne, these banks cannot be trusted as I have found out many times. Sorry to hear this has happened to you but as others have said, unfortunately it is legal. Definitely change banks for the money you are saving for your Dad. Sure if you explain to him what has happened he will understand. P.S. Well done for saving some of the money to pay him back in the first place btw, a great first step and you can do it again x