Advice Please - Re:Letter from Lloyds TSB

Bugjam

Hi,

First time poster in need of some advice.

Myself and my Partner entered in to a DMP 5 months ago, we have been making the regular monthly payments to our creditors via the DMP with the CCCS. The only creditor that we are experiencing any trouble with is Lloyds TSB who my partner has an overdraft with. They have been charging her and the account is now over the overdraft limit. We have sent them a letter (last week) asking them to freeze interest and stop all charges, now today we receive a letter saying that we have 2 days to pay 112 pounds to clear the unauthorised overdraft.

What should we do next? Send a letter to the new address we have for their Collections Department?

Help Please!!

beanielou

Was the OD not included in the DMP?
If it was speak to CCCS.

Bugjam

Yes, it was included. I understand that they don't have to freeze charges or interest. They have also been accepting the monthly payment from the CCCS.

fatbelly

How often have we heard 'The only creditor that we are experiencing any trouble with is Lloyds TSB'?

Lloyds have an incredibly complex system for dealing with accounts in difficulty, which seems to involve one department not knowing what another one is doing.

I think the best way is to make the offer and keep making the offer until you have written acceptance with an agreement to freeze interest/stop charges. Only then start to make payment. Making payment first just seems to slow the whole process down. You can't really tell CCCS not to make the payments so the second best policy is - nag them and keep nagging.

Quote The Lending Code and ask them how their attitude to you is 'positive and sympathetic' - suggest that you may refer them to the OFT for their view on the situation.