Lloyds TSB charges

pudster75

Hi all, Back in 2009 I was worried about being overdrawn. I had a direct debit due to go out of my account and I didn't have the money to cover it. I went to the bank and explained the situation. I was told that the direct debit was due to go out on the weekend so I would have until the end of the day on Monday to pay it. I was told that they would not allow a direct debit to go out of my account on a weekend or a bank holiday Monday.

I was able to get the money into my account in time. A number months later the same thing happened again. I had two direct debits due to go out of my account but it fell on a Sunday so as far as I was concerned I had until Monday close of business to get the money into my account.

I had money in my account that I was going to use to travel to a friends who had agreed to borrow me the money to cover the direct debits. I checked my account only to find that I was overdrawn. I tried later that day at a Lloyds cash point and it said the same thing. I did try to withdraw ten pounds only for me to be told that I had insufficient funds.

As far as I was concerned the bank had messed up so there was no way they where going to charge me, I was wrong! Six days later I received a letter stating that I'd gone overdrawn and they'd charged me £57. I went to my local branch and asked if I could ring the call centre to explain what had happened. I rang them up and was told the same thing. They would never allow money to go out of my account on the weekend, the advisor even went on to say that if I 'd tried to withdraw the money I would have been able to. I explained that I'd tried this and I was unable to. She told me that I must have been mistaken as it is all done by computer and the computer is never wrong.

For the next 3 - 4 months I was bombarded by calls from India asking for money. Despite me explaining the situation to them they never left any notes on the system and the charges where not frozen.

I canceled the direct debits and wrote to them (a waste of time). They pretty much said that I owed it and I was going to pay it, I told them where to go. About four months ago things started to get nasty. They got Wescot credit services involved so I wrote to the ombudsman. I have just had a letter off the bank, they have not said whether or not they are going to pursue it but have put in writing that the money I had was allocated for the direct debits and that's why I was not able to withdraw any money out of my account.

Sorry all of this is a lot to read through.

My question is can they do that and if so why was I told by two advisors that they could not and would not do that?

Thanks all

BugsyBrowne

Why didn't you have an arranged OD in the first place incase these issues ever occurred.

pudster75

They wouldn't give me one.

pudster75

The reason why I've put this in the loan section is because the direct debit was for a loan off Lloyds TSB.

Vikipollard

pudster75 wrote: »

The reason why I've put this in the loan section is because the direct debit was for a loan off Lloyds TSB.

I don't know, but perhaps this is the problem ~ a direct debit from a Lloyds account paying a Lloyds loan. Maybe the computer allows that to go through a bit like it allows you to transfer money between your own accounts, but if you send it to another person's account it doesn't appear until the next working day?

That could of course be nonsense on my part ~ just a thought though

pudster75

Lloyds are classing this as a separate company doing the loan even though it was through them. Whenever I had questions about my loan they were quick to point out that it had next to nothing to do with them, besides the other direct debit had nothing to do with them and the money I had in my account covered the loan off TSB.

DevCoder

DirectDebits are taken the working day after a weekend or bank holiday so something here is not right

I canceled the direct debits and wrote to them (a waste of time). They pretty much said that I owed it and I was going to pay it, I told them where to go.

This was just silly, you've trashed your credit file with defaults which will last 6 years instead of settling the account that was due at maximum two days after you expected and then following the banks complaints procedure.

pudster75

I had a bad credit rating anyway. I don't like people thinking they can push around the little man just because most of the time they get away with it. I have paid them bank charges many times when I have been in the wrong and not complained.

I tried to talk to a bank manager and was told that I had to call the loan department. I phoned up the call centre only for the advisor to pretty much tell me I didn't know what day it was when I went to the cash point and I wrote them a letter only to get one back that gave no explanation as to what had happened, they might as well of just said tough s**t. Until the other day they were telling me that the money was in my account and I was able to use it, now they're telling me that it wasn't in my account as the funds I had in there where known as allocated funds.

jonesMUFCforever

pudster 75 - check the dates on your statement against a calendar - they will show that payments are made on a monday to friday.
They do 'reserve' or earmark debits due to go out on the monday (just as they credit incoming funds) - that is the reason you were unable to withdraw cash at the ATM.

pudster75

Thanks for your advice guys. It's in the hands of the ombudsman now so I will see what they say. Just wanted some input on this allocated funds thing, never heard of it and what I was told twice in my opinion contradicts it. I will let you know how I got on.

Thanks again.

Enfieldian

Sorry, what does "borrow me the money" mean?