Worrying 'advice' from Lloyds account manager...

Carrie1983

Not sure if I am right to be concerned.

My husband left last year; I was working p/t, bringing up our then 2.5 year old (now 3.5) daughter, and am in the same job now. It's only been the last couple of months I have seriously been looking for full time, because the clouds have lifted and I feel focussed enough on what I need to/want to do. Childcare is not so crippling now either, and I do get some tax credits to help.

I had been using my credit card to get me through divorce fees; the horse that I was left with after the split, was put down in Sept (old age related illness) and that was £500; getting used to having one income instead of two, and still having all the same costs really; car repairs that had built up before the split... and a year later and I am 11.5k in debt.

I have 5658 on a Virgin card (limit 6k) at 0% until Sept. I have about 5800 on LloydsTSB M/C with a limit of 7000. I had an 800 unused overdraft on the old joint a/c (now a sole a/c) and have reduced that to 100 as seldom use the a/c; I have another current a/c with them and have a 200 unused overdraft on there. I never use them, and manage my accounts well. I have a Next and Simply Be a/c and need to keep those but have 0 balance on both. There are several dormant a/c showing on my credit report so I am going to get those closed.

My Lloyds card - they told me if I closed the card by 30th Sept, I could keep my 17.9% rate, but otherwise it is going up to 22.9%. I asked him today if I can do that, and he said no! I needed the card back then as still had fees outstanding to pay, but now I am out the other side and am willing to close the card. I have a dormant barclaycard - they keep offering a new card on 0% so I am going to try to get 0% on there and transfer from Lloyds. Otherwise, I am going to reduce the credit limits to 5500 on both the Virgin and Lloyds cards (so will be maxed on both, but will then not have loads of available credit).

Firstly, he told me I should clear the 0% card first then use the money I am paying on that to throw at the other card. I said "I think Martin Lewis would disagree with you." He laughed and said "Martin Lewis makes money out of giving that kind of advice." In whose world is it sensible to pay more of the 0% than the 22.9% rate, and clear that first?!

He told me lenders score you 1-10 on risk, and I am a 3, which most people with a mortgage are (including himself). He then said that a mortgage lender might say no because they don't base their decision on what debt you have when you apply but on what debt you have ever had, even if it is clear?! Most people have had debt at some point, and mine is very in control! I still have ex on mortgage at the moment, but it will be up for renewal in 2017, so I don't want too many credit applications between now and then.

I then said about my home insurance being too high, and he said if I swap to them they will pay any cancellation charges. I went through the quote. My current policy is £40 pcm - extortionate - with Barclays. He went through and it came back £55 a month. A comparison site last night gave me tonnes of quotes of around £15 per week. He then said comparison sites don't give the full picture and they don't look at the whole story until you actually apply, but I'd given all the details including my postcode. He said there must be something about the area I live that is making my quote so high - we are out of the flood risk zone, small hamlet pretty much on a farm, not a high crime rate. My friend lives in Exeter, on a main road, about half a mile from one of the most deprived areas in Britain, and hers is £17 per month! I asked him to print of the particulars of the quote and he said he couldn't as his printer was broken. Ten minutes later he printed something to do with my overdraft!!!!

I am so unimpressed! I am going to swap current accounts to another bank as both of them have only been running a few years anyway. I have an excellent track record on both accounts, but I can build that on a new account.

I will most certainly be making my biggest overpayments to the highest rate card! What's more, they wanted me to take out a loan to cover the credit card, and the loan rate was coming back at 27.9%. I asked why they thought it would make sense for me to increase the rate when I am happily paying it off as it is and he couldn't give a logical answer.

So annoyed!

Tixy

You have to remember that his main function is to sell you products. Whether that is insurance, a loan, anything he can. He isn't a personal finance advisor he is a salesman for the bank.

Well done for not listening to his advice though. It is a shame you were not able to opt out of the interest rate hike (you have 60days to do this from when you are notified) however hopefully you may be able to do a balance transfer.

Good luck with finding cheaper house insurance as well.

Carrie1983

Thanks Tixy. I think I was notified around the beginning of August, but needed the card still as had divorce fees coming up. It was on the condition I closed the card by 30th Sept.

I should have no problem getting cheaper home insurance as there were stacks returned on the comparison site.

The reason I am so annoyed is that they pretty much harassed me to go in for a meeting, dressing it up as concern due to my recent hike in debt after a previously practically debt-free past, telling me they can advise ways to help etc (as my account managers), and yet the advice they gave was rubbish and also, in parts, quite dangerous. Say I was wet behind the ears and decided to continue min payments on the 22.9% and do the £300 monthly overpayments on the 0% card... that would leave me so much worse off and lengthen the period of time I stay in debt.

My brother is an account manager for Lloyds elsewhere in the country, so I am going to ask him if he can find any better deals.

owen_money

Hi Carrie,
I cant offer any advice but just to stick with it. You sound like a strong person and have been through a lot, you will do really great I'm am sure. I see 1983 in you're name, is that your DOB? I remember that year, was the best year I ever had, 16, no cares in the world, just discovered girls, long hot summer (as per the style council song of the same name and year), smoking Fortuna ciggies on the lawn my mate brought back from Crete, just 8 fun filled weeks of mucking around until my engineering apprenticeship started. Now 30 years later, whatever happened to that summer and that happy boy without any cares, both long gone

JimmyTheWig

Carrie1983 wrote: »

I am going to reduce the credit limits to 5500 on both the Virgin and Lloyds cards (so will be maxed on both, but will then not have loads of available credit).

Why do you think that will help?
Unless you are tempted to spend the available credit, I'd say that reducing your credit limits would be a bad thing in your situation.

Other than that I think you've done brilliantly in not falling for this guy's sales pitches.

tallyhoh

I have just paid £93.00 for a years building & contents. £40 pcm is extortionate.

Carrie1983

Thank you all for advice.

LOL Owen - sounds like you had a great year in 1983... I was born in October 83, Karma Chameleon was number 1 when I was born.

Jimmy, I am not using that part of my credit limits, and the guy today did say that lenders look at available credit not just what I am using; I have 13k limit across two cards, but only using 11.5k (which will be 10.5k by January). Why do you think it is better for me to keep the limits higher? As soon as the Lloyds card is paid off, it's a gonner. I need a credit card for emergencies; I don't need 2.

Tallyoh - this product was advised by an IFA when we moved house and changed mortgage 2 years ago (nearly). In the first year it was around 33 a month, and it went up to 44 in May. I argued with them and they got it down to 40. There is a total of £50 cancellation fee; some insurers will pay the fee if I swap to them; I have found the appropriate cover for around £15 pcm, but he just kept laying it on about how this would not be appropriate cover. Unlucky for him, my other brother is an insurance broker (as my mum reminded me earlier), and I am going to call him for advice! His quote was actually £55 pcm!

owen_money

October was when I started my apprenticeship, still so clear. August was the best month for me, so far away, but still so near. I remember Karma Chameleon and many others, but long hot summer takes me back to lost chances and lost friends

DebtClearer

Carrie1983 wrote: »

Thank you all for advice.

LOL Owen - sounds like you had a great year in 1983... I was born in October 83, Karma Chameleon was number 1 when I was born.

Jimmy, I am not using that part of my credit limits, and the guy today did say that lenders look at available credit not just what I am using; I have 13k limit across two cards, but only using 11.5k (which will be 10.5k by January). Why do you think it is better for me to keep the limits higher? As soon as the Lloyds card is paid off, it's a gonner. I need a credit card for emergencies; I don't need 2.

Tallyoh - this product was advised by an IFA when we moved house and changed mortgage 2 years ago (nearly). In the first year it was around 33 a month, and it went up to 44 in May. I argued with them and they got it down to 40. There is a total of £50 cancellation fee; some insurers will pay the fee if I swap to them; I have found the appropriate cover for around £15 pcm, but he just kept laying it on about how this would not be appropriate cover. Unlucky for him, my other brother is an insurance broker (as my mum reminded me earlier), and I am going to call him for advice! His quote was actually £55 pcm!

Companies often look at your available credit, so let's say you have used £10k out of £13k you will have 23% of your credit available. It shows you are not desperate. If you had £10k of a £10k limit used you may be judged more harshly as companies will think you are living on the edge of your credit and perhaps more likely to default.

I myself am near my credit edge at the moment and I am tempted to reduce my limits as I go but I am going to hold tight on it.

Carrie1983

Thank you Debtclearer. It seems this guy was just talking out of one of the other orifaces he possesses but certainly not his mouth, if you catch my drift.

DebtMagnet

I have been summoned in to branch on several occasions over the years by Lloyds because they had 'concerns' about my account or other similar phrases and wanted to 'save me money'. Each time I went I went with my eyes fully open and knowing that they were simply trying to sell me something.

As I follow the MSE principles I am confident they couldn't get close to beating any insurance quotes etc but I went along each time to see if they could genuinely save me money on my existing debts......as after all, that was their claim.

Needless to say they couldn't save me any money and each occasion was a total waste of my time.

My problem is however that on two separate occasions, in two different branches with different 'Account Managers', even though they could see my finances were stretched, they were trying everything they could to push me to a loan at over 20% APR. When I obviously declined they persisted in calling to remind me that the 'offer' couldn't stay on the table for long etc.

And this is one of the reasons why upon starting my DMP just now, the only establishment I don't feel any guilt over giving reduced payment to is Lloyds.

They are by far the worst of the banks IMO and they deserve everything they get!