lloyds overdraft *first time poster*

pixierio

hi all,

i had a lloyds tsb student account which had an overdraft of £1500. when i graduated it suddenly stopped being interest free and between me leaving uni and getting employment it rose to £2140 just by interest and charges. I have been told by lloyds i cant claim these charges back. The account has been closed and handed over to collections, I have paid regular monthly payments and the overdraft is now £1300, I just find it bewildering that although I pay £100 per month my overdraft only reduces by £62. Ive found them really hard to deal with, for example last month I moved house, I rang to explain that I would only be able to afford £50 that month because of my circumstances and would carry on as normal the next month, they agreed over the phone but then sent me a letter saying I had defaulted on my payment plan, I rang to explain and set up another one and told if I defaulted again I would have 7 days to repay the full amount. I was turned down for a loan a few months ago and am scared to ask for a low interest credit card to pay off the rest incase i get rejected and have another mark against my credit. Does anyone have any suggestions as to how i can pay this overdraft off without 40% of my payment lining lloyds pockets, paying back what I owe isnt a problem but dealing with the people on the other end of the phone in brighton and paying 40% is really effecting me as it feels like im not getting anywhere! thanks

DD265

That doesn't sound right to me.

Why didn't you move onto the Graduate account with them? I finished uni/graduated in 2010 and it automatically put me on the Graduate account although I may have been asked for a copy of my certificate.

Your first £2k of OD would have been free, with the free amount decreasing by £500 every year. You'd be charged interest (currently 29.9%) and usage fees (£5 pcm) on that £500 if you were in it.

I think that you need to either go in branch and speak to an account manager or put something in writing. I'm sure that somebody can suggest which would be best and also what to say.

amyloofoo

DD265 wrote: »

That doesn't sound right to me.

Why didn't you move onto the Graduate account with them? I finished uni/graduated in 2010 and it automatically put me on the Graduate account although I may have been asked for a copy of my certificate.

Your first £2k of OD would have been free, with the free amount decreasing by £500 every year. You'd be charged interest (currently 29.9%) and usage fees (£5 pcm) on that £500 if you were in it.

I think that you need to either go in branch and speak to an account manager or put something in writing. I'm sure that somebody can suggest which would be best and also what to say.

I'm also in that position and whilst the Graduate overdraft isn't entirely fee-free it's certainly a lot better than the T&Cs you're currently on.

ss3n08

Hi, I have to agree with the second post. My lloyds student overdraft was at £1500 then when I graduated it moved to a graduate account and every year I lost £500 worth of the interest free part. I now have £500 to pay which is still interest free. I would speak to someone about that because I was automatically moved to a graduate account, I didn't need to ask.