Lloyds passing account to debt recovery team - what does this mean?

Pink-Angel

I've been on a DMP with CCCS for over a year and Lloyds have been the most difficult creditor. They have ignored requests to freeze/reduce interest. With my loan payments in the last 12 months, the interest and charges have increased my debt rather than reduce it. Very stressful to say the least.

I recent wrote a letter of complaint to Lloyds asking them to reduce interest and threatened them with the FOS. I thought this was ignored so have now contacted the FOS. They are going to contact Lloyds on my behalf.

Yesterday I received a letter from MHA Collections (never heard of them before). It was sent before I rang FOS, just took ages to reach me. They say their client (Lloyds) is passing my account to their debt recovery team. Does anyone know what this means? Is it the same as a debt recovery agency? The letter mentions a default will be registered against me. To be honest, this has already happened with another creditor and I'm realistic enough to accept this will happen at some point.

Does this mean that Lloyds may freeze the interest? Will I have people knocking at my door?

Any help from a knowledgeable soul will be appreciated .....

fermi

MHA collections are just a trading name made up by Lloyds to scare you.

You just keep paying via CCCS as before. Plus continue your complaint, as depending on T&Cs interest/charges doesn't always stop with a default, and you may get some refunded.

Pink-Angel

Thank you so much Fermi, much appreciated.

Thanks goodness for these boards - a godsend to so many of us!!

BenKatieFinn

MHA are in fact Lloyds TSB, they even have the same ladies voice on their lines when on hold/waiting for instructions, to be fair though MHA are helpful (i'm ex lloyds staff) if you need any more info regards to lloyds just ask I know pretty much anything you may need help with

mercbends

Dear Angel if youv'e learned anything it is you are not alone. All posts to you are on your side. FOS is the right approach however they must be getting sick and tired of Lloyds behaviour, not least the fact that the avalanche of complaints they are receiving will force some serious action hopefully by the government. I dont know if you are working or not. The reason is that you sound as if you need some form of help from your GP. the reason I mention this is because the 'Lending Code' has a raft of codes of practice the bank Must follow. Lloyds interpret this code in their favour, but ignore the sections that protect the customer, hence the FOS. National debtline will email a copy of this to you, its big but you will find Section 9 paragraphs 179 180,`185, 218,224,225 and others useful. Try to find the strength to keep at them, you can approach the FOS as many times as you want each time the FOS will force the bank to put things on hold currently 4 weeks.I believe the bank will eventually concede and start to help you. Best wishes and remember there are lots of us out here trying to help. mercbends

Pink-Angel

Well, I received details from Lloyds today threatening me with default and possibly court action if I don't pay £1000+ within a couple of weeks. Needless to say I don't have the money.

BenKatieFinn, how likely do you think it is that Lloyds will take me to court? A range the national debtline when I got in from work as CCCS were closed. The lady was helpful but it's still a worry.

Feeling pretty sick and depressed right now

fermi

Pink-Angel wrote: »

Well, I received details from Lloyds today threatening me with default and possibly court action if I don't pay £1000+ within a couple of weeks. Needless to say I don't have the money.

BenKatieFinn, how likely do you think it is that Lloyds will take me to court? A range the national debtline when I got in from work as CCCS were closed. The lady was helpful but it's still a worry.

Feeling pretty sick and depressed right now

That is expected from them, and not something to really be bothered about.

In fact, if a default is going to happen, then in reality the sooner they do it the better. Then the 6 years for this account being on your credit files starts ticking. Once the 6 years are up, it will be off your credit file for ever.

As for court action? They make the same vague threat to everyone. The % of times they go ahead with that threat are minuscule.

Pink-Angel

I've been advised by CCCS to do nothing in response to the 'lovely' letter received by Lloyds and that it's a legal formality before they pass my account to a debt collection agency.

Following a phone call to the FOS, I've received the relevant paperwork should I need to go ahead with a complaint once Lloyds come back to me with their response to the FOS's inital contact with them. Hopefully they will listen and freeze my interest. Otherwise I may have to consider an IVA as I'll never get out of debt with Lloyds adding so much interest.

KirstyO

I wish you the best with it all. Lloyds are my biggest creditor at the moment (a CC and an OD) so I'm really hoping that my DMP has an impact on my debts with them (although by the sound of things, I doubt it will), in which case I'll have to snowball when I get any spare money...

Please keep us updated, especially with any further hurdles. Like I think has been said before, people on here are on your side, and lots of people have a wealth of knowledge on debt management/intricacies of the financial sector.

All the best

Pink-Angel

Thanks Kirsty. I wish you well too, and hope you have better luck than I've so far had with Lloyds.