Loan written off by LLoyds

phbatbjco

I have recd the following letter from Lloyds. I took the loan out as a pension loan in 1993 for a reasonably modest 5 figure sum of approx £15k. It was interest only and the capital is due to be repaid from my self employed pension lump sum when I reach 65 in about 9 yrs time. I've never made any complaint, always paid on time, and was fully aware of the loan details - actually quite happy with it. Quite happy with the rate at 2% over base! The letter reads:-

"Important information about your loan agreement: xxxxxx
Dear Mr xxxxxx.
I am writing to you to confirm that your loan has now been closed and no further payments
will be sought from you.
What you need to do next.
If you have been paying your loan by standing order, please make sure you cancel the
instruction-with your Bank
What this means for you.
We have settled your loan. This means you don't need to make any further payments and
this will not affect your credit rating.
If you have used your property (or other assets) as security for this loan and have not used it
as security for any other loan, this charge will be released and we will write to you separately
to confirm this has been done.
If you d like to contact us about any questions you may have about this action, please write
to us at. Lloyds Personal Loans. Lloyds Banking Group, 155 Bishopsgate. London EC2M
3TQ
Yours sincerely"

When I log on to internet banking the amount outstanding is still showing as owing.

Any one know if this is a mistake? or a scam? cos I cant figure it out!

I am reluctant to actually contact them for obvious reasons!!


Thanks

jonesMUFCforever

Is there a phone number on the letter?
If so Google it to see if it comes up as a Lloyds number.


I understand Lloyds are going through historic loans/investments as they could be deemed to have been missold.




In your case would it be a good step to reduce your pension by mortgaging it in this way? Would it be allowed today? The answer is probably not.


Hope its genuine for you.

jamesd

Did the loan have payment protection insurance included?

You can simply wait a month and see what happens in online banking and any credit report that may show the loan, though given its age it may not show up at all on credit reports.

[Deleted User]

Just contact them - easiest way to find out.

As you say, you're happy with the loan and it's not as if you're trying to avoid paying it back.

phbatbjco

Thanks for your comments, guys. It's still a mystery to me - think I'll just wait and see what happens.

I never took out any PPI and wouldn't have anyway cos I thought it was a rip off and I was self employed. I well remember my wife and I used to have numerous hard sell PPI calls trying to persuade us to take it out by the likes of MBNA, BOS, etc etc and we never did actually succumb!

Pension loans were popular when I took it out as an alternative to an endowment policy linked loan.

I knew exactly what I was doing and was quite happy with the risk etc etc, so basically I think that the pendulum has swung the other way and it is now the consumers ripping off the banks claiming that they didn't know what they were signing up for when in fact the majority knew perfectly well what they were doing. People who knew perfectly well what they were in for never seemed to have any difficulty with the mental arithmetic when playing darts and instantly knew in a flash what 501 minus 68 was or how to get out with three darts on 59!

somethingcorporate

Call me old fashioned but why not just ring them and find out? You could get an answer in about 5 minutes.

Lloyds_Bank

phbatbjco wrote: »

I have recd the following letter from Lloyds. I took the loan out as a pension loan in 1993 for a reasonably modest 5 figure sum of approx £15k. It was interest only and the capital is due to be repaid from my self employed pension lump sum when I reach 65 in about 9 yrs time. I've never made any complaint, always paid on time, and was fully aware of the loan details - actually quite happy with it. Quite happy with the rate at 2% over base! The letter reads:-

"Important information about your loan agreement: xxxxxx
Dear Mr xxxxxx.
I am writing to you to confirm that your loan has now been closed and no further payments
will be sought from you.
What you need to do next.
If you have been paying your loan by standing order, please make sure you cancel the
instruction-with your Bank
What this means for you.
We have settled your loan. This means you don't need to make any further payments and
this will not affect your credit rating.
If you have used your property (or other assets) as security for this loan and have not used it
as security for any other loan, this charge will be released and we will write to you separately
to confirm this has been done.
If you d like to contact us about any questions you may have about this action, please write
to us at. Lloyds Personal Loans. Lloyds Banking Group, 155 Bishopsgate. London EC2M
3TQ
Yours sincerely"

When I log on to internet banking the amount outstanding is still showing as owing.

Any one know if this is a mistake? or a scam? cos I cant figure it out!

I am reluctant to actually contact them for obvious reasons!!


Thanks

Hi phbatbjco,

I appreciate you're reluctant to get in touch, but our Loans team will be able to provide you with info on this. They're available on 0800 096 1270 (lines open Monday to Sunday, 8am to 10pm).

Thanks,

Craig

carlan

Hi all


I have just joined the Forum (so forgive me if I get things out of kilter!) having seen phbatbjcos post ref the above (thought this had been posted a moth ago but not so!!)


Anyhow I had a similar letter from LLoyds last week and despite making loads of calls and speaking to numerous different Depts no-one at the Bank has been able to confirm/clarify the position


My loan was taken out in 1990 and is interest only


My Local Branch of Lloyds say the letter is genuine and they have cancelled my DD to the Bank


Any comments from anyone??

Lloyds_Bank

carlan wrote: »

Hi all


I have just joined the Forum (so forgive me if I get things out of kilter!) having seen phbatbjcos post ref the above (thought this had been posted a moth ago but not so!!)


Anyhow I had a similar letter from LLoyds last week and despite making loads of calls and speaking to numerous different Depts no-one at the Bank has been able to confirm/clarify the position


My loan was taken out in 1990 and is interest only


My Local Branch of Lloyds say the letter is genuine and they have cancelled my DD to the Bank


Any comments from anyone??

Hi carlan,

Sorry to hear my colleagues weren't able to clarify when you called. If staff member in branch wasn't able to provide info either, I can only suggest following the intructions on the letter by writing to us at:

Lloyds Bank Personal Loans
Lloyds Banking Group
155 Bishopsgate
London
EC2M 3TQ

Thanks,

Craig

phbatbjco

Thanks again for all your responses and in particular the one from the Lloyds rep.

At least I seem to have found someone in the same position (Carlan), but it doesn't seem as if he's been able to get much info out of Lloyds, nor it seems unequivocal confirmation that his letter is genuine.

Incidentally, I have another loan from Lloyds taken out on exactly the same basis a few years later in the 1990s, but I've not had a letter on that one.

Odd isn't it?

Seems a bit "random" to me, to coin my kids phrases!

Also I'm asking the question why are they doing this? As a shareholder in lloyds as well I'm a bit unimpressed they are needlessly writing off loans - perhaps I am too principled!!

carlan

Lloyds_Bank wrote: »

Hi carlan,

Sorry to hear my colleagues weren't able to clarify when you called. If staff member in branch wasn't able to provide info either, I can only suggest following the intructions on the letter by writing to us at:

Lloyds Bank Personal Loans
Lloyds Banking Group
155 Bishopsgate
London
EC2M 3TQ

Thanks,

Craig

Dear Craig


Thanks for this and sorry to bother you.


I have just spoken with the Personal Loans Dept on the number given in your earlier post.


I was told that they only deal with Loans from about 2000 onwards and that the Branch should be able to sort this out.The Branch were unable to help when I when I went in last week.


I advised that the letter I had received mentioned the Bishopsgate address and was told that the Personal Loans Dept was based in Peterlee and therefore the letter really had nothing to do with them.


I then pointed out that the "Return Address" details on the back of the envelope had a Peterlee Postcode and the Representative confirmed that was correct postcode. I asked why the letter that no one seems to know about was posted from Peterlee. I was not given any explanation. I explained that I had already spent a lot time trying to establish why the Bank had written to me as they have but without any success. I was then invited to make a formal complaint. I have not done so.


I have already written to "LLoyds Personal Loans" at Bishopsgate and await a response


In the meantime please will you let me have a contact number for an individual at Lloyds who I can speak to directly to clarify the position.


The letter I have received was signed by Flavia Palacios Umana whose designation is "Head of Lloyds Loans Propositions at Banking Group"


I would expect that someone at Lloyds will be available to speak with me or that you or they could place a Post to provide a little further information in this matter,.


Regards




Carlan