Lloyds Bank terrible customer service/care

reppie

i've always had another account since before i was a student. i'll be the first to admit i neglected it which is obviously why they introduced the overdraft charges. since then i have made payments in to the account.

101problems

To clarify they offered you an overdraft based on how much was coming into the account if that amount stops coming into the account the overdraft is no longer affordable, they would be right to call in the debt especially as If you say your credit isn't great, even people with stellar credit ratings will find their overdraft removed if there is not a regular income proportionate to the amount of lending and lending is the key word for an overdraft it's a loan!!

reppie

no it was a student account. the account was then made in to a non-student account, they introduced interest and a monthly charge. it's only since i started paying in to the account that they removed the planned overdraft for 'not using it' and 'making no payments in to it'

101problems

Your clarification that it was a student account now makes so much sense I would speak to their collections team ASAP and come to an arrangement, this is going to hurt your credit file but it will hurt it a lot less if you have an arrangement to pay, others have suggested a SOA I promise you this is a good idea to have this before you speak to collections as they will pretty much do a SOA when coming to an agreement which they WILL do but it will absolutely be on their terms whereas preparing your own SOA gives you an advantage!

reppie

i've had no option to speak to anyone about any such thing though. i can't speak to their CSU, i've just been told the fees will mount up. that's it. in any case, it is going to harm my credit record when they should have just kept the planned overdraft in place since i was a) using it and b) paying in to the account. they've stitched me up for no reason

Armorica

reppie wrote: »

i've had no option to speak to anyone about any such thing though. i can't speak to their CSU, i've just been told the fees will mount up. that's it. in any case, it is going to harm my credit record when they should have just kept the planned overdraft in place since i was a) using it and b) paying in to the account. they've stitched me up for no reason

Really? Just call them up or go into a branch again.

You said that you set up a standing order that didn't go through. If you are managing your accounts responsibly and managing down your debt, how did you not notice the money hadn't been taken from your other accounts? From your original message, it sounds like you made no payments for four months - that's rather at odds with your claims that you were making payments. What went wrong with setting up the standing order?

You also said statements didn't arrive regularly. When you speak to Lloyds ask about the statement frequency. It's possible you had somehow set the account to receive online statements (but no internet banking?) or quarterly or when active? (If you've moved, then did you provide them the right address?) But banks would usually sent you not only a statement but an advice of charges due to be applied to your account (such as interest...).

Your understanding of 'using' an overdraft differs from banks' too. By using it, banks would tend to understanding you are paying money in on a regular basis as well as drawing on the overdraft. A one-sided arrangement - taking the overdraft but not regularly paying in is not 'using', it is 'taking'...

101problems

Under FCA rules they have to consider hardship I suggest you log a complaint claiming the bank is causing you hardship and won't enter into an arrangement to pay, however at no point have you been stitched up the bank are acting within the terms of the account you agreed to when you took the overdraft which as a student was almost like "free money"? At the time unlike a student loan they can and will call time on the debt at any time however if they dismiss your complaint of financial hardship get onto FOS only if you can prove hardship, from the 2009 ruling this is your only viable route, the fact they have called in the debt will never be upheld by the ombudsman however if they don't treat you fairly in a time of financial distress the ombudsman would most likely find in your favour but you need to invoke the complaints policy and forget about how unfair you feel it is and focus in on the impact it gas on you if at that point they don't come to an agreement he'll mend em they will lose when it comes to FOS, do a statement of affairs put in writing (not email) an offer to pay follow these steps and yes their is going to be an impact on your credit file but it is going to a darn sight better than ignoring it

pmduk

If you've an overdraft you can't service, surely your credit rating is the least of your problems, specially if it's accurate?

reppie

Armorica wrote: »

Really? Just call them up or go into a branch again.

You said that you set up a standing order that didn't go through. If you are managing your accounts responsibly and managing down your debt, how did you not notice the money hadn't been taken from your other accounts? From your original message, it sounds like you made no payments for four months - that's rather at odds with your claims that you were making payments. What went wrong with setting up the standing order?

You also said statements didn't arrive regularly. When you speak to Lloyds ask about the statement frequency. It's possible you had somehow set the account to receive online statements (but no internet banking?) or quarterly or when active? (If you've moved, then did you provide them the right address?) But banks would usually sent you not only a statement but an advice of charges due to be applied to your account (such as interest...).

Your understanding of 'using' an overdraft differs from banks' too. By using it, banks would tend to understanding you are paying money in on a regular basis as well as drawing on the overdraft. A one-sided arrangement - taking the overdraft but not regularly paying in is not 'using', it is 'taking'...

I was making payments in to it. They say statements were sent but I rarely get them.

101problems wrote: »

Under FCA rules they have to consider hardship I suggest you log a complaint claiming the bank is causing you hardship and won't enter into an arrangement to pay, however at no point have you been stitched up the bank are acting within the terms of the account you agreed to when you took the overdraft which as a student was almost like "free money"? At the time unlike a student loan they can and will call time on the debt at any time however if they dismiss your complaint of financial hardship get onto FOS only if you can prove hardship, from the 2009 ruling this is your only viable route, the fact they have called in the debt will never be upheld by the ombudsman however if they don't treat you fairly in a time of financial distress the ombudsman would most likely find in your favour but you need to invoke the complaints policy and forget about how unfair you feel it is and focus in on the impact it gas on you if at that point they don't come to an agreement he'll mend em they will lose when it comes to FOS, do a statement of affairs put in writing (not email) an offer to pay follow these steps and yes their is going to be an impact on your credit file but it is going to a darn sight better than ignoring it

I have made a complaint, they closed it without speaking to me or offering me any alternative.

pmduk wrote: »

If you've an overdraft you can't service, surely your credit rating is the least of your problems, specially if it's accurate?

I was servicing it.

Lloyds_Bank

reppie wrote: »

This is a bit of a story to bad mouth Lloyds.

I had a planned overdraft of £500 which I am well in to. Lloyds changed it so that there was a monthly fee and interest on this. Couldn't really complain. I set up a standing order to pay money in to the account regularly to cover it (plus a bit) but this didn't go through for whatever reason. Statements rarely arrive so I had no idea for a while. I then paid in 4 months-worth and set up a new standing order.

I then got a letter saying they are removing my planned overdraft because:

a) I don't use it (I clearly do as I am well in to it)
b) I haven't paid any money in (which I had)

The fees are now £10 EVERY DAY over £25. Up to a maximum of 8 in a month. I tried to get it overturned, showed that a) I use it and b) I had paid money in and had set up a new standing order, but no-one cared. I can't afford £80 a month outgoings on top of my current financial situation, and I can't afford to pay it off by next month.

I spoke to someone in the branch earlier who said 'well the fees will just build up then won't they?'

They have basically tied my up and rear-ended me, with absolutely no other option available to me but to let the account become unserviceable, it be referred to collections, and for another black mark on my credit history which is so close to being sorted out.

Utterly useless bank - avoid at all costs!!!!!!!!!!

Hi reppie

I'm sorry to hear about what's happened and for the service you received in branch.

Firstly, if your complaint's been closed and you're unhappy with the outcome, you can find info on how to proceed with your complaint here. You'll find a link within that section to our online complaint form which you may find useful if you'd rather submit it online. One of my colleagues will then get in touch with you.

With regards to your overdraft, as mentioned by some other users, you may wish to speak with our Customer Support Unit for help and advice. You can reach them directly on 0808 145 0373 (Monday to Friday 8am-9pm, Saturday 8am-5pm). I appreciate you've had difficulties calling them; however, when you reach the automated service please select options 1, 2, 6 then 1. You'll be asked for your accounts details and once you've keyed these in, you'll be passed to an advisor.

I hope this helps.

Cheryl