Will I have to pay my loan back too? (merged)

forever_renting

Hi, this is my first post here. I apologise if its in the wrong place. My OH has a bank account with Barclays, it has a £300 overdraft limit and he also has a loan for £5000. We are currently looking into claiming back at least £1000 worth of charges. At one point he was charged £90 in one month! I was wondering if in the event that he succeeded and they closed his account, would he have to pay back all of the loan or is that a separate thing altogether?
You see the overdraft is no problem because we hardly ever go into it and if needed we could clear it easily, but the loan is way too much and obviously the charges we get back wouldnt cover it. Any help or advice in this matter would be greatly received as I am expecting a baby in 6 weeks and could really use this extra cash!!

Cheers in advance
Louise

Twinkly

I found this earlier in relation to another post on the forum. I think you may find it useful.

link here : http://www.financial-ombudsman.org.uk/publications/ombudsman-news/40/40_setoff.htm

My interpretation is that the money refunded should not be set off against the loan provided the payments are up to date. I would ensure that I quoted some of it at least to the bank in requesting refund to be paid direct to me. If they do take it then you would have grounds for complaint to the Financial Ombudsman. Please read and compare the article and its contents as to how it applies to your own situation though and be prepared.

Congratulations on your expected happy event, you should be resting now as much as possible and not worrying so good luck with your claim

wilky371

I was self employed until Sep last year.
I have two loan accounts with Lloyds.

I have added up my charges to the start of the account.

I want to reclaim the charges which come to just over 1k.

1. Do you think I'll have sucess with the reclaim ?
2. will they call in the two loan accounts ?

Any help appreciated before I send off my letter.

ssky

I'm considering trying to reclaim back bank charges but i'm a bit wary as i have a loan of thousands with Lloyds tsb and if i do go ahead with this, what if they decide to close my account & then demand full immediate payment of my loan. I'm in no position to fulfull this right now.

I think it did say in the small print of my contract that they can demand immediate payment of my loan at any time. When i signed to this agreement years ago, i assumed that they only do this if you start to default with your payments & they wouldn't normally do this to a strictly on time with payments customer.

nickmack

ssky wrote: »

I'm considering trying to reclaim back bank charges but i'm a bit wary as i have a loan of thousands with Lloyds tsb and if i do go ahead with this, what if they decide to close my account & then demand full immediate payment of my loan. I'm in no position to fulfull this right now.

I think it did say in the small print of my contract that they can demand immediate payment of my loan at any time. When i signed to this agreement years ago, i assumed that they only do this if you start to default with your payments & they wouldn't normally do this to a strictly on time with payments customer.

If the payments are up to date on the loan, they shouldn't touch it as you say, it's covered by a seperate agreement.

nadine12

I am about to start the process of reclaiming my bank charges but have a few worries so would be grateful for some advice!
1. I have a small overdraft at the mo of about £300 (only given to me as I had £300 of charges pending and no way of paying them) - this should be more than covered if I get a pay out though so does this matter?
2. I have a loan of nearly £8000 with Lloyds - again this was given to me as I was in difficulties and was to pay off a Lloyds credit card and overdraft, both of which were made far worse by charges I might add!! Could they demand repayment of this as there is no way I could do this.
3. Are they likely to close my account - my credit rating is so bad i don't think I could get another account, although me and my partner have a joint basic cashcard account with Barclays which I think(?) I could have my salary paid into.
4. I am worried they will say I don't have a leg to stand on due to my own terrible management of the account over the past couple of years. I have got deeper and deeper into a mess with my account due to falling pregnant unexpectedly and not being entitled to maternity pay. I do however think the bank made a bad situation worse as it turned into a vicious cycle of missed direct debits/charges taken/no money for the next attempt for the direct debit - the usual story! Feel a bit guilty claiming and am worried they will say its my own fault!

Twinkly

nadine12 wrote: »

I am about to start the process of reclaiming my bank charges but have a few worries so would be grateful for some advice!
1. I have a small overdraft at the mo of about £300 (only given to me as I had £300 of charges pending and no way of paying them) - this should be more than covered if I get a pay out though so does this matter?
2. I have a loan of nearly £8000 with Lloyds - again this was given to me as I was in difficulties and was to pay off a Lloyds credit card and overdraft, both of which were made far worse by charges I might add!! Could they demand repayment of this as there is no way I could do this.
3. Are they likely to close my account - my credit rating is so bad i don't think I could get another account, although me and my partner have a joint basic cashcard account with Barclays which I think(?) I could have my salary paid into.
4. I am worried they will say I don't have a leg to stand on due to my own terrible management of the account over the past couple of years. I have got deeper and deeper into a mess with my account due to falling pregnant unexpectedly and not being entitled to maternity pay. I do however think the bank made a bad situation worse as it turned into a vicious cycle of missed direct debits/charges taken/no money for the next attempt for the direct debit - the usual story! Feel a bit guilty claiming and am worried they will say its my own fault!

Alrighty, firstly, calm down

1) No the overdraft doesnt matter if the charges reclaimed cover it.

2) The loan is a seperate arrangement and although they may demand payment of it that is subject to repayment based on your income and outgoings just like any other debt. They are not given any special priveleges to demand immediate repayment and expect it. I would claim for charges on the loan too but they will be set off against the debt and you wont actually receive cash but a reduction in the debt (still a good thing. )

3) If they close the account you can complain to the Financial Ombudsman and may be entitled to compensation of £200. Use your joint account as back-up against this and I would start having wages paid into it now in anticipation and to stop any further charges being taken from the wages.

4) It doesnt matter what you credit record is like. The charges are unlawful and you are entitled to reclaim them.

Now start reclaiming and good luck

geoff78

I want to reclaim my charges from my bank (HSBC) but I am worried about them closing my main account, which is a joint account, and my loan account. I also have an account seperate from my wife's. Will they simply close the account I am reclaiming charges on, or will they close all accounts I have with them?