Is this even legal from Lloyds TSB?

edited 30 November -1 at 1:00AM in Reclaiming Mortgage Fees, Council Tax, etc
4 replies 921 views
G4ceG4ce Forumite
3 Posts
My mum is an OAP and currently being hassled by the banks, day in and day out with threatening letters and phone calls.

She had an overdraft in 2007, one day the bank phoned her up and said they were taking it away (she was £700 overdrawn at this time) they took her entire months pension to retrieve part of her debt and immediately started charging her high rates. She had an agreement to re-pay ten pounds a month, yet they continue to hassle her, now threatening her with bailiffs I believe she had repaid over £1000 in total now.
It is absolutely disgusting, the amount of stress they have put her under.
I was tempted to offer a settlement figure to get them away from her, but someone suggested they will just send in the bailiffs without consideration.

I hope someone can suggest something, any advice would be greatly appreciated!

Replies

  • The amount and nature of the calls could be harassment, but difficult to tell at a distance. The removal of the overdraft is most likely legal.

    If your mum has a written agreement to £10/month and has been paying it then I would tell them to get stuffed. Can you clarify your figures though as £10 a month since 2007 is £600 at most not £1000?
  • Including the months pension they took it's closer to £1000. It's shocking that this is legal, they can trap so many people into debt and to take their entire months money without warning as well.

    I have told her to always say to the phone calls that they must communicate only in writing.

    The last letter received was stated she must now pay £42 a month or face consequences
  • magpiecottagemagpiecottage
    9.2K Posts
    1,000 Posts Combo Breaker
    ✭✭✭✭
    G4ce wrote: »
    they took her entire months pension to retrieve part of her debt

    I think there may be grounds for complaint that this amounts to setting off a subsistence balance against a debt and is therefore a breach of FSA Principle 6 (to treat customers fairly).
    She had an agreement to re-pay ten pounds a month, yet they continue to hassle her, now threatening her with bailiffs

    You do not say whether she was meeting that agreement. If she was then arbitrarily changing it would probably also amount to a breach of Principle 6. On the other hand if her she was not meeting it, or if her circumstances had changed and she was able to pay more, it probably would not.
  • Yes she is always up to date with the payments. She is still a pensioner and this is her only income. At 71 this is very unlikely to change, but they continue to pester her.

    Do you think offering them a settlement would be a good idea, or is this not advisable?
This discussion has been closed.
Latest MSE News and Guides

17 Netflix hacks

Cut costs & get more from your subscription

MSE Guides

Beauty Advent calendar round-up

Incl M&S calendar release date

MSE Deals