Lloyds took all my money! PLEASE HELP

LukeC88

Hi guys,

This month I done loads of overtime just to get paid more so I can go away with my girlfriend for the weekend... howether, logging into my online bank and what do I see? my planned overdraft has been removed, all my wages have gone.

I had £2550 planned overdraft
wages paid: £1036.33

I have spoken to customers service, spoke to three different people
Person 1: There is nothing you can do
Person 2: You are not authorised to get the overdraft reinstated
Person 3: There isn't much you can do apart from calling the collections team and see if you can sort an arrangement out with them.

*************
I am sure that banks cannot just take all your wages, how do they expect people to live, I have car insurance, Car finance, phone bill, rent, obviously money for food and basic living stuff.

All this has happened today 30/04/2013
I have bills coming out on 02/05/2013 (Car finance, phone bill, rent)

PLEASE HELP

Dragonista

I imagine it will take some time and I have no idea what you're supposed to do in the interim.

What I can't understand is when they removed the overdraft facility or how much you were already in it.

I suggest going into a branch and demanding to speak to a manager. Tell them that you had the arranged overdraft and whilst you are trying to pay it off you still need it to cover basic living expenses.

After that you have the option to go through the official complaints procedure and then the financial ombudsmen.

Finally, your overdraft is not free money, so once you pay it off stay in the black! You should try to avoid an overdraft at all times, 2.55k is too much when you're income is less than that. And, with respect, you shouldn't be planning weekends away before that's paid off.

antonic

Was this an authorized or unauthorized overdraft ?

The other worrying thing is that the O/D is approx 2.5 times your wages - perhaps they thought you were going to default ?


As Dragonista has said you need to get into the black and stay there !.

ellesbellesxxx

Had they not sent you a letter telling you they were going to do this?

The_Boss

LukeC88 wrote: »

I am sure that banks cannot just take all your wages]

I'm afraid they can - it's a reason why it is not recommended to be using a current account if you have a credit card in arrears with the same bank. How much of the overdraft were you using?

fatbelly

Remind them of para 7.19 of this:

http://www.oft.gov.uk/shared_oft/business_leaflets/general/oft1107.pdf

7.19 Exercising a right of 'set off' without undertaking an
associated affordability assessment or under circumstances in
which such an assessment has been undertaken and it is
clearly apparent that the borrower is already experiencing an
unsustainable level of indebtedness or would be if a right of
set off is exercised.

The 'Right of Set Off' is the process whereby banks exercise their common law
right to apply a customer's credit balance in one account against unpaid or
overdue amounts on other accounts in that customer's name. For example, this
could be where a bank takes funds from a customer's current account to cover
a missed credit card payment.

The Lending Code (monitored and enforced by the Lending Standards Board)
sets minimum standards of good practice that banks, building societies and
credit card providers should follow when dealing with retail customers. The OFT
agrees with the position as stated in the guidance issued by the Lending
Standards Board that before applying set-off, businesses should take account
of information that they have available to them to identify whether the borrower
may be in- or may be heading towards- financial difficulties.

In all cases where set-off is to be applied and it has been established, by the
creditor, that the borrower is in financial difficulties, the customer should be left
with sufficient money to meet their reasonable day-to-day living expenses and
priority debts, where these have been identified. Particular care should be taken where it can be identified that a borrower's balance is made up wholly or in part of state benefits.

and para 195 onwards from this

http://www.lendingstandardsboard.org.uk/docs/lendingcode.pdf

LukeC88

This was authorised overdraft by the bank. Thrre was no contact by email, phone or letter to let me know this was going to happen. I will be calling the collection team now. I will report here what they said to me

rizla_king

fatbelly wrote: »

Remind them of para 7.19 of this:QUOTE]

Also s5.1 of BCOB. https://fshandbook.info/FS/print/handbook/BCOBS/5

LukeC88

Spoke to them and they authorised me to go to my local branch and take out my entire wage

heartbreak_star

Good to hear they at least did something! Make an arrangement to gradually reduce your overdraft if you can - it's what I did with my student account

HBS x

Trajal

This is the worst example of setting off that I've seen and I'm quite surprised it's with Lloyds who have become my 'go to' bank in recent years.

Make sure to have a current account with a completely different bank and in future have your salary paid in and direct debits paid out. Set up a standing order from that account to gradually reduce your lloyds overdraft on the day that you get paid (or shortly afterwards) at an amount that you arrange with them.

Be sure, when setting that arrangement, that you are treated fairly and don't let them bully you into giving them too much every month.

Good luck, I'm sure you have been in a very difficult position but I have no doubt that with time and hard work you will push out of it and Lloyds will regret not having you as a customer.