Lloyds and Interest

RattyRat8

Hi may sound like a stupid question but here goes.

Last year I lost my job, I was quite well paid and never really thought I'd be out of work for long......How wrong was I! anyway I had two loans and a credit card with the LLoyd plus my bank account which had a £900 overdraft limit, Lloyds did a great job of plundering my bank account to pay my loan payments and the credit card whilst rejecting my other DD's and running up my overdraft to £2,500 with loan payments and charges (I'm in the process of claiming these back as I type), obviously being in the red I was unable to shut my account, in the long run I had to use a proportion of my small redundancy money to clear the bank account before being able to shut it, god knows how far they would have ramped up the account. As my income is now greatly reduced I had to set up a DMP with the CCCS to cover several creditors, all but Lloyds accepted the terms of the agreement and stopping such things as interest payments and additional charges, not the Lloyds. At present I pay the Lloyds a monthly sum of £129 to cover the loan and in their kindness charge me £80 per month in interest meaning I chip away at my loan to the tune of £49 month. Is there anyway of getting these interest charges reduced? after all they have in the past been prepared to off load this on to a debt agency who would have paid a fraction of the value. I'm miffed to find a bank that I've dealt with for over 28 years can treat people this way, I know I took the loans out in the first place but the age of the loan means that a considerable amount of the loan had already been recovered. Other companies have been more considerate and have stopped interest charges as they are aware that it only exacerbates the problem.Oh and don't get me wrong I'm happy to pay my loan after all I did agree to do that and when I get back to my original salary level I will be able to do so, but to be constantly squeezed in a vain attempt that the pressure will deliver me a higher wage doesn't help!

Oh and they also added insult to injury by sneaking a PPI onto one loan which I was unaware of until they credited my account 18months after I lost my job, I'm trying to recover that lot too!

Word of advice, don't bank with the LLoyds and read everything before you sign

DCFC79

RattyRat8 wrote: »

Word of advice, don't bank with the LLoyds and read everything before you sign

Nothing wrong with Lloyds, i had an account once and they were fine.

well yeah makes sense to read the T&C's before you sign.

antrobus

RattyRat8 wrote: »

.... At present I pay the Lloyds a monthly sum of £129 to cover the loan and in their kindness charge me £80 per month in interest meaning I chip away at my loan to the tune of £49 month. Is there anyway of getting these interest charges reduced? ..

Which is (trying to be vaguely helpful) the only question asked by the OP.

I suspect the answer to be 'no'. As in; there's no way of compelling a creditor not to demand repayment of the sum due short of going down the insolvency route in some way.

dealer_wins

Person owes bank money and is suprised that they actually want it back SHOCKER!!

dresdendave

RattyRat8 wrote: »

Hi may sound like a stupid question but here goes.

Last year I lost my job, I was quite well paid

Whilst you were in a well paid job surely you would have been putting away a bit of money each month into a savings account. Can you not use this money to help sort out your debts?

Foggster

Good see the helpful little rays of sunshine are helping you OP!

I am sure the OP is thankful that someone has reminded them of that savings account they had forgotten about!

OP - I too have banked with Lloyds for over 25 years and I have to say, when you are in black and giving them plenty of income they are sweetness and light but totally agree that when you need their help they soon turn. I was lucky to pull back from the brink of bankruptcy some years ago but they showed their hand early when I asked for their help and there was very little there.

I am not sure if there is anything you can be advised of that you havent already thought of but it might be worth posting on the Debt free wannabe board where you will receive a much friendlier and helpful response.

iolanthe07

Word of advice, don't bank with the LLoyds and read everything before you sign

I have banked with Lloyds since I was 18, almost 50 years ago. I've never had any problems with them. I think all banks are pretty much the same, tbh.

fatbelly

I think you're saying that you're on a DMP and everyone except Lloyds is playing ball. What can you do?

So the Debt-free Wannabe board is where you should post, not the Loans board.

There is even a dedicated CCCS thread there (sticky: struggling with debt. ask a debt adviser a question) where a CCCS adviser will be able to help you.