LLoyds TSB handling of loans

originalgoonie

HI,

I know Lloyds have had a lot of bad press recently in relation to how they sold products etc.

I just wanted to know if any issue has been raised about the way they used to sell loans by taking your overdraft into it?

For several years I could only ever borrow from Lloyds who I banked with and could never figure out why I continuely got rejected even though at the time I had very good credit and could have gotten a cheaper rate. (Turns out some one at Lloyds entered my date of birth wrong think this was the route problem for being rejected and never found until several years later! :mad:)

Anyway I had an overdraft with the account which was used and if I wanted to take out a loan the only way they would agree to it was that I had to pay off my overdraft with the loan therefore making me take out a bigger loan than I wanted (the loan amount I asked for plus what overdraft was) and end up paying more interest overall as the overdraft was much cheaper interest than the loan (and the fact that I could pay off my overdraft as and when I could afford to!). This was done to me twice by Lloyds and I had gone and spoken to an advisor in the branch so don't know if there were incentives for them to get someone to take out a bigger loan!

Does anyone know if this practice was looked into during all this recent review of Lloyds or this something that will and/or can be addressed if deemed unfair practices?

Please only real factual answers. I don't need any replies from those on this forum who like to bash people for making stupid decisions or the fact I didn't have to take the loan. I now learned the error of my ways and dearly paying for it and never want to take out a loan again!

Many thanks,

originalgoonie

Clive_Woody

Overdrafts are repayable on demand and at any time that the bank requests that this be done.

No doubt when you asked them for a loan they decided that they did not wish to continue to provide you with an overdraft in addition to a loan and therefore proposed that you borrow enough money to clear the overdraft in addition to the new borrowing.

I am not sure that they did anything wrong, you could have simply declined the loan and looked elsewhere but any other lender would also be able to see on your credit file that you had an overdraft so would have taken this into account when (or if) they decided to offer you a loan.

originalgoonie

OK thanks,

Wasn't sure about it. I have so much uncertainty at the moment with the practices that were used a few years ago which is when we started our downward spiral of debt. I was so naive at the time. It just seems a lot of bad practices are being brought to light in the news so it makes you question more what products you took out at the time.

BonkersBonkers

Overdraft cheaper than a loan = what account did you hold and what rates were the loan on?

Apples2

How did you discover Lloyd's having your date of birth wrong prevented you from being accepted at better rates elsewhere?