Loan letter

wendy1950

Hi
I have been on here re my sister in law helping her try to sort out her debt, she has a loan of £15000 and overdrafts of £3000 with Lloyds Tsb she owes £1400 to Argos and a small amount of £148 to a catalogue, she has just set up a DMP with CCCS and it seems to be sorting it self out,

Argos have not replied to us yet, the catalogue Co are okay

Lloyds have agreed a reduced sum on her overdrafts for 6 months also making them authorised ones (they were slightly over so incurring charges) ) so only the £5 monthly fee and interest is added but it is below the payment so not going up.

Today she has received a letter from Lloyds regarding the loan and they say

"Thank you for discussing repayments with us starting June 1st we will accept reduced payments of £125.81 each month for six months.
after that time we expect you to go back to paying full monthly payments as shown in loan agreement and pay off any arrears that has built up on the account. if you are having problems making payments at that time contact us to discuss options available."



They also say Please note that despite their concession the terms of the loan agreement to make full payments when due are still in force, and that this letter is not a notice specifying that they will not excersise their right against her in relation to the full monthly payments. under the consumer credit act they are required to send her notice of arrears that build up on the account. although they have granted a temporary concession arrears will continue to mount up and that this info will be passed on to credit ref agencies. as long as she sends less than the full monthly payments, they will show the full monthly payments due.

They have sent a financial advice web no for Tsb and also said she may wish to contact citizens advice or national debt line. which obviously she already has!!


From what I have seen on here it sounds like a standard letter (I haven't seen it she has just sent me a message with this info) it seems ridiculous to say they will accept it for 6 months but still add it all up and expect her to pay it at the end of that time, are they MAD?

Anyone else had this and what do you think of it please,
my SIL is very scared about all this so I want to be able to reassure her, she has no arrears on anything yet but just could not carry on how she was, we are going to try to claim PPI soon and also contact FOS as she has been advised terribly by the bank whom she trusted totally, very naive, but full of trust they were doing what was best for her.

Thanks Wendy x