Sue my Bank or Take 16K

andym

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Situation

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In October my wife made a complaint to Lloyds, who chose to ignore our letter, so in January she complained via the FOS and included our October complaint letter. Our complaint to the FOS howvere only touched upon one element of this letter, ie the way Lloyds have treated us since i took out my IVA.

FOS complaint about a joint account of £2,000. This is listed in my IVA. Paying back 25p in £1 means I pay back £500 through my IVA. We have allways understood that my wide would be liable for the balance eg £1,500. they chasing her for £2,000 and basically refuse to speak to me now as the account details are just in her name.

Other complaints in the letter included

1. Misselling of Loan PPI to my wife
2. The issue over them saying the £2,000, we saying £1,500 (above)
3. Giving my wife a credit card "to help us out" (see 5)
4. Increased our Overdraft (see 5)
5. Encouraging us to pay off debts, so we didnt take out an IVA in 2002 when we realised £40,000 from selling out home. Me given £24K loan when not working

They have now responded with an offer of £16K, representing repayments of PPI & interest on loans in 2002 and 2004 in my wife's name. This is to fully settle the complaints the letter (and rather surprisingly not deal at all with our FOS complaint!)

So 16K represents about half my wifes current debt, and I am 1 year into my IVA.

WE will hit them soon for
1. Bank Charges (£1,200 or so)
2. Miss selling PPI on my Wife's credit card (3 above)

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Question

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1. Where can we seek advice on what to do next?

By my recoking their helpfulness in 2002 has cost us £109K. I'm sure it was more but I'm a little tired atm. My logic is thus:

In realty they were helpful, helped us run up even more debt so that I had to take an IVA in 2006. (oweing 50K)

Had we taken the IVA route in 2002, I would have no debts (so 50K for starters), my wife would have had 20K (+20K) in the bank, I would have used 20K to pay my IVA. She would have earned interest (+10K). She wouldnt have had the loan she does now (owing +20K). she wouldnt have a credit card (they were all in my name before) (+9K)

Is there any hope of screwing them over like they have us? Any no win no fee type people out there? Or should we geelfully take the 16K and run?

Any thoughts would be gratefully appreciated.

Poor but coping Cornwall.

EvilEdna_2

This is quite a complicated situation - there are a few solicitors that offer initial consultations for free, you could phone around and find out who does. That way you can find out if the solicitor thinks it is worth pursuing without spending any money upfront.

andym

Solicitors and free...never thought I'd hear them words together inthe same sentence heeh. Maybe I'm just too synical.

Thanks for the suggestion

chivers1977

There is no way that you are ever going to get what you have asked for. They cannot be held liable for you not taking out an IVA and continuing to increase your debt.

I think that the offer made to you is the best that you will get and the FOS will uphold this.

I am pretty sure that Lloyds would let this one go to court. I am saying this as a complaint handler for a Bank so am not just speaking out of turn.

I would take the money and say thanks bye bye!!!

roswell

No offense but look at the folowing

4. Increased our Overdraft (see 5)
5. Encouraging us to pay off debts, so we didnt take out an IVA in 2002 when we realised £40,000 from selling out home.
Me given £24K loan when not working

4 ) Did they just decide to give you this .. or did they ask you and you accepted,

the loan, you didnt HAVE to sign the agreement.

The credit card .. as above they didnt invite you to the bank and say "Good news we got this for you"

2. Miss selling PPI on my Wife's credit card (3 above) (She had to agree to it)


How about taking some responcibility for your situation ?


I would think you would have been best taking your wifes name off the joint account before the IVA as im pretty sure you are " Jointly and severaly responcibile for this debt"

id take the 16 000 say thank you very much then go investige how financial products work.

misspoppy

If this is their first offer I would try to negotiate up, £16k with little presure seems a bit easy to me. I would also see a solicitor as per other suggestions.

Also yes you have to take some responsibility for your current situation but lending someone £24k when they aren't working doesn't seem to be very responsible on their part.

Good luck

andym

Thanks for the generally helpful suggestions. Guess sum people never had debt issues.

We only complained to the FOS over a £500 issue, so getting an offer of 16K is a bit unexpected.

We have a few weeks so we will seek out a local solictor. Worst case scenario atm seems to be my wife takes the money, saves £400 per month and settles all her debts at the same time my IVA finishes.

No house, but debt free in 4 years, and a 16K loan PPI success story. Always a bright side I suppose!

chivers1977

Sorry that you don't think that some of us are being helpful, just being realistic. You will not be able to get no win no fee on this one as they take their fee from insurance companies and you are going against a bank.

While Banks should practice responsible lending, customers cannot hold their lack of decision making against them, ie the Bank is not going to tell you to take an IVA. There is a responsibility to the shareholders to get the maximum profit and if you were to enter into an IVA, then the sum that is repayable is obviously less.

I have had debt problems which I have brought under control by downsizing my property. You do not appear to want to take any responsibility for your actions, which IMO can only lead to you having further debt problems in the future when you are able to obtain credit again.