Trouble with LloydsTSB

lovelybirchtrees

Hi, My lightbulb moment was in August of 2005. I went to Payplan owing approximately £40,000. Most of it in my name as OH had been unemployed for about 2 years and then went back to uni to retrain for a career as a furniture conservator and restorer. The lack of income from OH and a lost contract for me (I've been self-employed since 1989) meant that I couldn't make the minimum payments.

I countered the lost contract by accepting a two-day per week employed position and with help from Payplan was paying off the debts. Now down to about £30,000. Unsure exactly as Lloyds is currently adding interest and charges and the paid off figure is now going up not down. The other creditors seem to have received the info from Payplan and have accepted it. We did not have any CCJs or large arrearages and I had kept the creidtors informed.

However, since last August (06) Lloyds has been stating that they haven't received the 'change in circumstances' info from Payplan and despite Payplan contacting them, me faxing them the info (last Saturday to 4 different fax numbers), physically carrying the info to the local branch, etc, they are charging me late fees and interest. Payplan has been paying them monthly - I have not missed a payment but I am now worse off than I was as the interest and charges are adding up.

The situation is making me depressed, I cry at the littlest thing and I am thinking about bankruptcy just to stop the downslide. When things were working and I could see the debt decreasing monthly I could keep it up. I work the 2 day a week job, live in tied accommodation for which I do 20 hours a week and I am self-employed for three days of which two are taken by a long-term fairly secure contract. OH has finished uni and started anew business but is still at the point where most income goes back into supplies and tools. OH is helpful with the wardening (tied accom) job but has no patience with my being depressed or upset - he just gets depressed as well because he feels he isn't earning enough. Then he gets cross with me for not documenting everything and going to the banking ombudsman. I don't think the ombudsman will help.

As we are both in our 60s, there is not much in the way of wider options. This is why he ended up going back to uni in the first place.

Has anyone else had this problem? Any suggestions?

I can post the SOA that Payplan and I worked out but I don't think there is much room for maneouvre there.

pania

oh i am so sorry to hear of your troubles. you should be able to spend these years of your life relaxing and enjoying, not putting up with the way that the bloo!y (pardon me) lloyds are treating you! it sounds as though you have good grounds for complaint esp f payplan willback you up that they sent the docs out to them.
I send my highest regards to yourself and you partner for putting yourselves through training and uni courses, they are hard at the best of times but you have fought so hard to sort this out. I'm just off to drive home and will wrack my brain for some ideas for you while on route but please please post your soa. Peiople here are so knowledgeable with such good advice and just talking can make things seem so much better. will post once home. Kind regards, P xx

lovelybirchtrees

Thanks for the support, Pania
Bank of Scotland 3367.64
LloydsTSB loan 10,995.50
LloydsTSB VISA 716.02
LloydsTSB OD1 2979.93
LloydsTSB OD2 258.79
MBNA1 1147.91
RBS Mint 1886.65
The above are only in my name except the two LloydsTSB ODs which are in joint names.

OH has 2 with MBNA 1 is 6355.52 and the second is 3238.67
The second was GIRO/ Alliance & leicester and was bought out.

Income is 653.00 employment and 600 self employment. The wardening has no monetary value but provides a roof and water.

Outgoings monthly:
Council tax 135
contents insurance 29
gas 48
electricty 58
Life assurance 70 (for two)
TV licence 11
Telephone 30 (incl BB which I need for my work)
Car: road tax 17
fuel 50
maintenance 20
breakdown 5
Food 300 (incl 2 lunches each week in staff canteen - less than I can pack one)
clothing 40
haircuts 16
tube fares to commute 20 per month (free to come home with freedom pass but need to start earlier than possible with pass.

Which leaves us approximately 386 to pay on accounts. I have rounded figures as it makes it simpler arithmetic.

I am not claiming my pension from the state as I want to let it grow while I can still work. I make too much to be ble to claim any benefits. But if we didn't have the wardening job, we would be bankrupt as we would find it difficult to rent for the available cash. In addition, we are able to use an outbuilding for OH's workshop so we are very blessed with that. However, we need to get sorted in the next three years as we will need to be moving by Sept 2010. We are on 3 yer contracts and have asked for the one ending in August 2007 to be renewed but we have been here 9 years and I would like to not be doing this in the foreseeable future.

The more I look at this, I was dumb to continue paying OH's debts when he was out of work. He could have gone bankrupt while a student... Now, I must admit that despite wanting to pay everyone back, the extra hassle form Lloyds is making me ill and I think the BR looks better and better as we would be free of the largest debts and the 386 would pay OH's off in about the same three years.

I am reclaiming 1700 from Lloyds realising that they could make me bankrupt if they want to be nasty but if that came off what we owe them... it would make a good way to clearing the larger of the ODs.

Any suggestions are useful. I am doing a mystery shopper job tomorrow and have sold some stuff on ebay. Unfortunately not a lot to sell but will be trying Amazon with some of the books. I am trying to cut the food bil (the quoted amount is what Payplan estimated) but it tends to get eaten by the car which is a 1992 Honda accord needed for OH's business - a van would be better but...

Seaxwyn

Hello lovelybirchtrees - what a beautiful name you have chosen!

I haven't got any useful advice, just wanted to send support and commiserations. It is unbelievable what banks get away with - hassling you when it's there own mistake they haven't logged the information you have sent them numerous times. I would have thought that since it's their error, you should be able to get all those fees etc back, but I'm no expert so hope someone more knowledgeable comes along soon.

You've done so well to reduce your debts by 10k already. This must be a bitter blow but don't despair, keep posting and you will get good advice and lots of support on here.

Broken_hearted

Hugs I would complain to the ombudsman as I can't see any other way of making the bank listen.

gravitytolls

What a rotten time you've had.

I know it's easier said than done, but try not to worry. At the end of the day, it's only money. What's the worst that can happen? They can't stone you, stick you in the stocks, chop off your hands ~ although I know (really I do)that it feels like they're doing all of these things emotionally.

TBH, I'd be inclined to pop into the CAB with your paperwork, explain the situation to them, tell them all you've done, and sk what you can do regarding the legal position. I can't praise them highly enough. They will take copies of everything, they will contact organisations for you, and they know where you stand regarding the law, and what the banks can get away with.

And, perhaps it's worth looking into bankruptcy, and how it will affect you? It does sound scary, I must admit, but if Lloyds insist on pushing your debt up, not down, I can't see you've much to lose ~ they have more, but they're forcing you into a position where you can't see away out.

Once again, can I just say, IT'S ONLY MONEY.

YOU are important, your health, your well being and your relationship and future.

If the bank won't help you to help yourself and repay the debt you owe, which you have been working very hard on, then you deserve to be looking out for yourself, not them.

lovelybirchtrees

Thanks for the support.

Seaxwyn, thanks for the encouragement. The name came from the tree outside my office window and it makes me feel good.

Broken-hearted, I know it's only money but I borrowed it in good faith and I feel lousy not paying it all back. The ombudsman is the next step after I try the CAB.

Gravity tolls, I am trying the CAB next week. OH has actually offered to go and get an appointment as Iwork on site on Mondays and Tuesdays and couldn't do anything until Wed. I tried earlier today but was too lte to get an appointment today and they are only open for appointments on Friday. I have a mystery shopper job tomorrow as well as a hospital appointment so it's fairly shot anyhow. But I am taking my two eldest grandchildren to the theatre tomorrow evening. Wouldn't be possible except for a grant from a trust that made their tickets £2 each.
I will try to cheer up as I have them until Monday morning.
Thanks to you all for the support. It is the loneliness that gets me when I am fighting a faceless monster (or so it seems).

Broken_hearted

I would phone the bank and ask them to send info on the ombudsman out to you, you never know it might spur them into action.

Tosh1

Lovelybirchtrees,

What's stopping you from going bankcrupt now?

As I understand it, you don't live in your own property; your OH is self-employed and you will keep your job if you go bankcrupt!

You're too old to get a mortgage (sorry I don't mean to sound harsh), so are you worried about never getting credit again?

What would happen if you just stopped paying your debt now?

I've stopped paying mine (16Kish) to a DCA (a company that purchased the debt from MBNA (1st Credit)) and I'm just ignoring them. Okay, they may take me to court, but I don't want a mortgage or any future credit and my job (I'm also self-employed) is secure.

From what I've read, you're in a similar position to myself. What I'm saying mightn't be ethical, but neither are these companies that dole out the credit.

Also, remember bankcruptcy doesn't carry the same stigma it used to.

Added later:

I'm not a bankcrupt and to be honest, I don't know much about the process either, but I do understand it's a way out!

tealady

Don't forget there ia bankruptcy forum, why don't you hop over and have a look. I'm sure there are lots of friendly people over there who will advise you?

craftingqueen_2

Hi lovelybirchtrees

Just to say there is a lot of us having trouble with Lloydtsb,hang in there.

Sorry can't you much ,but there is lots of nice paople on here who can.

craftingqueen