LLoyds TSB bank Charges - Financial hardshio and debt collections

LloydsDebt

Hi, I'm a newbie so please forgive me if this has already been asked before.

I had a Lloyds TSB platinum account used it well and then got into difficulty with money, I buried my head in the sand a bit and would go overdrawn, charges stacked up and I couldnt pay them, so they would increase my Overdraft to accommodate the charges etc, this went on until I ended up £4426.08 in the red. I couldnt keep up with my account and was in contact with LLoyds TSB regularly and making goodwill payments to keep it active, However over the Xmas period in 2010 I wasnt able to take a call from them (I was with my family who had no idea of the debt) and as I did not speak to them when they called, they passed my account onto BLS collections in Oxford (which I think is part of the Lloyds banking group but not sure)

As my account was passed onto them I have received a default on my credit file, I'm unable to get a Credit Card, A phone contract, NOTHING.....

Now...I have been paying regular monthly installments to BLS Collections of around £90 to £100 a month and now have a balance of £2371.28 without any further interest or fees being applied (for this alone I am grateful) but have recieved calls from BLS asking me if possible to clear the full amount at a reduced rate, but I cant get my hands on that sort of cash and due to the default from Lloyds im also unable to get a consolidation loan.

Now my question is this....Its causing me some difficulty with money, things are always so tight that I dont even have enough money to get to work some days and its 20 mile trip..petrol is so expensive etc...BLS have no details of my account with Lloyds historically so I have asked Lloyds to provide me with just details of my Overdraft Charges and Fees which I am currently waiting for...has anyone any idea if I would be able to claim back these charges now, with my account so far on with BLS? Roughly I think the amount could be anywhere between £3500 to £5500 until I receive the information from Lloyds I wont know exactly.

Would this fall into finacial hardship? Im so stressed with it all, Can barely afford the essentials sometimes...I'd be happy for them to reduce my debt instead of giving me the money, I just want it cleared so I can get on in my life, Make a better future etc

Would anyone know also if I would be able to have the default on my credit file overturned or is that there to stay?

I know its a lot to ask but I would be so grateful of any help, advise or info from your own experiences of Lloyds.

Thanks so much in advance!

DevCoder

If you post a SoA (see the debt free wannabe subforum for the link) then we can advise on the hardship claim.

You wont be able to get the default removed as your credit record needs to show an accurate representation of what happened.

Note that if you do a partial settlement then the default will be flagged as such (ie partial settlement marker) and not with a fully satisfied marker.

LloydsDebt

Thanks for such a speedy response, Forgive my lack of knowledge but you say that if I settle at a reduced rate then it will show as only a partial settlement where as if I continue on the monthly payments it will show as satisfied in full?

Will this have any further implication then for the future or is it considered better that I settled it partially but earlier?

Thanks again

DevCoder

The default , no matter how settled, will disappear after 6 years from default date.

However it looks better to lenders if the default is flagged as satisfied rather than partially satisfied.

DJ_MPH

LloydsDebt wrote: »

charges stacked up and I couldnt pay them, so they would increase my Overdraft to accommodate the charges etc,

Not sure what, if anything, can be done about it now but wouldnt this constitute as irresponsible lending, as the OFT guidelines state that its the responsibility of the creditor to check that the customer be able to afford to pay back the credit sustainably. Seeing as how it was charges for your overdraft getting you further and further into the red, it was irresponsible of them to continue to increase your credit.

LloydsDebt

Well, I received a list of charges from LLoyds TSB in the short time I banked with them, was a total of £4712.56.....Im going to try and claim these back under financial hardshipa nd irresponsible lending. Will let you know how I get on. If anyone has any hints or tips then please let me know!

Thanks