Any Lloyds Banking Group Staff on a Debt Recovery Plan?

sittinpretty

I work for Lloyds bank (as a back office processor) and like anyone else I can get into debt and unfortunately this has swelled to about £30k on credit cards, overdrafts and catalogues. So far I have been able to manage this, usually through the rob Peter to pay Paul route but all my lines of credit have now dried up and from this month onwards it will be impossible for me to pay all my creditors their minimum payments each month. I have sold as much as I can on eBay and cut out any luxuries to reduce my outgoings.

Rather than try and borrow even more money this last weekend I decided it was time I pulled my head out of the sand and faced my problems head on, so I have entered all my debts & details on the StepChange website and I am just about to send off the signed form to them to start the Debt Recovery Plan.

However, I have a couple of big problems because some of the debt is with my employer, Lloyds Bank. I am just under my £3000 overdraft limit plus I have £1700 on a Lloyds credit card. I am not in arrears with Lloyds or anyone else but I am pre-empting the fact that for the next couple of years my income will not cover my outgoings and very soon I will not be able to pay everyone (I am going to have at least a £200 short each month for the next couple of years until three loans I have totalling £300 per month are paid off in October 2015).

The problems are:

1) Lloyds will only pay wages into a Lloyds account, if they close my account as StepChange advise they will if I start a Debt Recovery Plan how will I get paid? I have asked HR if I can be paid into a Nationwide account I have but they said no. Do Lloyds close all your accounts, could I open a Basic Bank account with them with no credit facilities which they will not close and have my wages paid into?

2) If I owe the bank money will they just deduct any amount owing directly from my wages. This would really stuff up my Debt Recovery Plan and likely push me into an IVA or even bankruptcy which would then impact me on even being able to work for a bank.

I really want to start a Debt Recovery Plan but I am terrified that this will start a chain of events with my employer that will be disastrous, especially when I am not in arrears with anyone (yet) and I am on good terms with my bank. I'd like to keep Lloyds out of my Debt Recovery Plan but StepChange said I should not do this as it is unfair to other debtors and I am sure they are right.

Have any other Lloyds Banking Group staff (Lloyds, TSB, Bank of Scotland or Halifax) had a Debt Recovery plan involving debts to their employer and if so what was their experience? I have the signed forms ready to post to StepChange but am afraid of the consequences to my employment.

I would rather borrow from Wonga each month than put everything in jeopardy and possibly lose my job. It's not like I can start asking around at work or phone different departments for help as this would just tip them off, I have to be so careful. Any help would be very much appreciated.

claret_mike

Have you advised your HR team of your debt issues?

I don't work for the group but my understanding is that most bank workers have to demonstrate they can handle their own financial affairs (even if it is just back end processing).

Clearly if Lloyds are happy with the situation then surely they will have the means to pay you either by opening an account or by paying elsewhere but the fact that you do not fully know what your options are, I am guessing that you will not have fully disclosed everything to HR.

I would not wait for step change to notify them, I would be approaching your manager/hr team because it at least keeps your integrity in tact with them. If they feel you have hid this from them, they will rightly ask, what else have you kept from them?

Im sorry to hear that you have got into this situation but it may be worth reading your contract of employment and any staff handbooks that you may have to see what it says about this kind of situation. If you have a union rep - speak with them also.

Also bear in mind that annual credit checks may take place - again if you are caught out this way it is more likely to see the end of your career in financial services. The use of Wonga will also be seen dimly too I am sure.

If you had not had debts with your employer, you may have been able to get around it but personally, I think the only answer is to speak to someone and get proper help - if you were to lose your job, it would be no worse than the situation of losing it by hiding. At least this way, you can demonstrate you are trying to sort things out etc and make steps in the right direction

I guess another thing to look for is to see if you could you get a 2nd job to cover shortfall and just ensure lloyds are paid in full? It's not good whatever way...

seanavfc92

Speak to HR and see if the Right of Offset can be removed if you're not allowed to be paid into another bank.

The only thing I can think of is if you get paid into your Lloyd and then transfer it all straight your Nationwide account.

Goldiegirl

Just want to second what Mike said.

I've always worked in banking, and it has always been emphasised, (and is probably in your staff manual) that you should inform your employer if there is any financial difficulty.

I'd suggest you speak to your line manager or a manager you trust ASAP, or if not, speak to HR.

cynicalgit_2

Another possibility is a self managed DMP and leave Lloyds out of the equation.

seanavfc92

cynicalgit wrote: »

Another possibility is a self managed DMP and leave Lloyds out of the equation.

The other creditors would do a credit check and see that Lloyds is not on the list, then they may be more inclined to reject his proposal as it would be seen as preferential treatment.

ClootiesMum

I believe the Employee Assistance Programme (should be accessible via the intranet) covers money issues - might be worth having a chat with them. But as mentioned before - I would be tempted to speak to a trusted line manager or even a union rep if you're in the union.

Best of luck.

Also - it might be worth taking the bank name out your post and generalising this to "a bank".

laurasavon

I have my wages paid into my first direct account, I was under the impression that those conditions were pre merger and pre harmonised t&c's. I changed my bank details online on the HR self service and haven't had any problem (I was HBOS though and I think it was a lloyds rule)