Anyone with experience of freezing interest with LLoyds?

Magi74

Quick update from me.

Lloyds basically say "it's a short-term problem we'll charge the interest set in the ToC. If it's a long-term problem we'll default it and pass it off to a 3rd party, but then we will stop the interest". Otherwise it's exactly the same as Allypops - if you pay "too much" then we'll charge interest, but if it's a token payment then we'll freeze interest

So a) continue complaining at Lloyds, b) kick it straight to the FOS. In the meantime do I take the default just to save money (we're losing £100 a month to these idiots)? Given that we've been on a DMP for 8 months now I fail to see how Lloyds still see this as a short-term thing (told them enough times on the phone) but that's another argument!

From reading previous posts on this it seems that I need to take the long-haul approach, but any thoughts welcome.

BenKatieFinn

Afternoon All,

I've recently resigned at Lloyds for a few reasons BUT I have to say that there are ways around the issues you're facing.

My advice would be to firstly ring the customer support unit direct not rely of your DM company doing it for you, the letters dont have the same impact as a telephone resolution, make sure you have a completed i+e and know everything they might need to know about your finances. If your purely Lloyds debt its great for them that you're ringing, end of the day they want their money back that you have borrowed, if its proven by i+e that finances are strained they'll be able to offer a refinance loan (you'll not qualify for further lending in the future with them mind) generally longer term but lower rate. If there's no luck with that option, go into the local branch (not a saturday as you'll get fobbed off) best thing is to make and appt so you know someone is free, ask to see the manager who will then call the customer support people who are the only people to help you as the control of 'bad' accounts or arrears are solely dealt in collections, branch staff have no involvement or decision making. you'll find that when in branch if you are raising a complaint you will be offered the world (generally) because they're under real pressure to prove to the FSA that the'yre serious about complaints and resolving them, this maybe a smokescreen cos they dont want a fine but take the opportunity while you can. Any lloyds questions please ask, i've been there and done it on both sides of the counter. Ben

Gimpsdad

Is there any reason why you are on a DMP and not an IVA? If there is (equity, job restrictions etc) then fair enough, if not then you might be well advised to take a 2nd opinion off someone whose income is not dependant upon creditor contributions, which then seems to be recouped in a large number of cases it seems by non freezing of interest. CCCS statistics as to the proportion of IVA's to DMP's that they administer are truly shocking, and Payplan are a business not a charity.

Of course, if you can stomach the thought, bankruptcy and an IPO for 3 years may be even cheaper than an IVA. Either way, this ongoing interest issue needs addressing asap.

J_Tizzle

Gimpsdad wrote: »

...take a 2nd opinion off someone whose income is not dependant upon creditor contributions, which then seems to be recouped in a large number of cases it seems by non freezing of interest.

Not sure that that is fair/true.

I have a DMP with CCCS and four out of five of my creditors froze interest straight away (and some even refunded back-dated interest and charges). It was only LTSB who did not but they at least reduced the rate (on a credit card) to about 5%.

Gimpsdad

Whether it is fair is a matter of opinion. My opinion is that it is fair, read through many threads on here and there is a lot of discontent, and rightly so, about creditors refusing to freeze interest. therefore the problem is an undeniable one, albeit that it may confine itself to a small but significant amount of creditors. True? Absolutely.

It never harms anyone to take 2 or 3 opinions, and CCCS own statistics of the ratio of DMP's to IVA's when compared with other professional organisations in this field blows their own front door wide open to the question of impartiality. That is another debate of course, but why should you be statistically 10 times more likely to be given legal protection from creditors, and by definition further interest charges as well, under an IVA from an independent firm than you are by a creditor funded firm?

It is a debate that rages fierce, has done for a long time and will undoubtedly continue to do so, as there is no logical answer why it should be so.

rolorich

I have a business bank loan that defaulted and a personal credit card debt with lloyds.

The business bank loan - no interest and other charges as it was passed by the bank to a third party. I was told when i spoke to lloyds re this one they would pass it on so that the interest and charges WOULD stop....

The credit card I negotiated a much reduced interest amount so paying off more each month than interest - but they have written to me to say my six month arrangement plan is up - so i have sent of income, expenditure details etc. to them again and hoping they do low interest again at least.......just waiting to hear back....

They are the only one from 12 creditors charging interest though.....

I do my own DMP after guidance from CAB and hope to keep it that way.....

pure_dead_dopey

BenKatieFinn wrote: »

Afternoon All,

I've recently resigned at Lloyds for a few reasons BUT I have to say that there are ways around the issues you're facing.

My advice would be to firstly ring the customer support unit direct not rely of your DM company doing it for you, the letters dont have the same impact as a telephone resolution, make sure you have a completed i+e and know everything they might need to know about your finances. If your purely Lloyds debt its great for them that you're ringing, end of the day they want their money back that you have borrowed, if its proven by i+e that finances are strained they'll be able to offer a refinance loan (you'll not qualify for further lending in the future with them mind) generally longer term but lower rate. If there's no luck with that option, go into the local branch (not a saturday as you'll get fobbed off) best thing is to make and appt so you know someone is free, ask to see the manager who will then call the customer support people who are the only people to help you as the control of 'bad' accounts or arrears are solely dealt in collections, branch staff have no involvement or decision making. you'll find that when in branch if you are raising a complaint you will be offered the world (generally) because they're under real pressure to prove to the FSA that the'yre serious about complaints and resolving them, this maybe a smokescreen cos they dont want a fine but take the opportunity while you can. Any lloyds questions please ask, i've been there and done it on both sides of the counter. Ben

I would categorically say that taking any kind of additional loan while on a DMP is simply not allowed. And taking a further loan from a creditor who refuses to recognise the guidelines for debt collection would be an act of simple madness.

Report them to the FOS if they won't stop charging interest and you are on a DMP, phone it takes two minutes and it works. and it costs them everytime someone complains, so do to them what they do to you and certainly don't take any loans off them, I'm astounded that anyone would suggest that.

pure_dead_dopey

consumer helpline

Monday to Friday – 8am to 6pm
Saturday – 9am to 1pm

• 0800 023 4567
  free for people phoning from a "fixed line" (for example, a landline at home)
• 0300 123 9 123
  free for mobile-phone users who pay a monthly charge for calls to numbers starting 01 or 02

we'll be happy to phone you back, if you're worried about the cost of calling us

Pink-Angel

Having got fed up with sending letters to Lloyds asking them to freeze interest and receiving no response, I've spoken to the FOS who are contacting Lloyds on my behalf. They've sent me paperwork to follow through with a formal complaint if I'm not satisifed with their response.

I'm wondering now if I should consider an IVA - mainly because the interest/charges Lloyds have been merrily adding over the past year have made my debt situation worse. I was under the impression that as I got myself into debt it was only fair I paid my full debts back. But doing this had made things worse and now it's going to be longer than 5 years before I'll be debt free, so now I'm thinking, sod it, what's best for me to get me out of this situation?!

Earthmother_2

A quick update. We have received our credit card statement this month and it shows Lloyds have reduced our interest rate from 30% to 5.94%. I would have preferred a freeze but this is better than nothing.