Account Switching

robertcarrick27

A couple of years ago, I approached First Direct to switch to them. I currently bank with Lloyds, and have pretty much run out of tolerance - and am sick and tired of how they treat me.

I also have a personal loan with Lloyds and was told by First Direct that should I leave, then Lloyds could demand their loan back in full. I obviously chose not to switch...but am thinking of doing so again and didnt know if anyone could confirm what I was told by First Direct...would Lloyd demand their loan back if I left them?

mcmaze

No they shouldn't, they can demand an overdraft in full, but not a loan or credit card.

colsten

The terms of your loan agreement will prevail. Dig them out and see what they say.Don't rely on what strangers who have never seen the agreement say.

robertcarrick27

this is indeed true...the agreement states that they may recall the debt if....blah blah...but the point they make is that "if you have broken any other agreement with us and we reasonably believe you will not be able to make any future payments!".

All seems a bit vague...the question being of course that by leaving them, does that break an agreement? And can they prove that I wouldnt be able to make the payments?

If Lloyds had told me this, I would have dismissed it - it is only because First Direct told me that it made me suspicious!

YorkshireBoy

Is it a condition of your loan that you hold a Lloyds current account and make the loan payments from it (by 'direct transfer', rather than direct debit)?


To put some detail into your "blah blah" statement, loan and credit card debt is generally only repayable on demand if you:


1. Become bankrupt.
2. Die
3. Repeatedly break the terms of the agreement.

colsten

robertcarrick27 wrote: »

the agreement states that they may recall the debt if....blah blah...

what "debt" are we talking about? an overdraft? a loan? both? what are the "blah blah" terms?

robertcarrick27 wrote: »

All seems a bit vague...the question being of course that by leaving them, does that break an agreement?

what do you mean by "leaving them"? Closing your current account? You have terms and conditions that govern your current account. These will include that you can close the account anytime you like but if you have any overdraft you will of course still owe the bank the money.

If you have a loan, it will also state if you need a current account etc with Lloyds. If it doesn't state this, you won't need a current account with them.

robertcarrick27 wrote: »

can they prove that I wouldnt be able to make the payments?

it would probably depend on your payment record to date.

robertcarrick27 wrote: »

If Lloyds had told me this, I would have dismissed it - it is only because First Direct told me that it made me suspicious!

I have no idea what you told FD, and why FD have told you Lloyds would/could demand back the loan. As you have not given any details about your loan or your current account, it is difficult to make any detailed comments. You would probably be best advised by asking Lloyds whether closing your current account would affect your loan.

robertcarrick27

ok, in terms of some of the points you raise.

The terms and conditions of the loan are pretty standard - hence the blah (not helpful, I know) - but Lloyds state they could recall the loan if they subsequently find out something wasnt declared, they were mislead, or also if their are concerns over the re-payments.

My history with Lloyds has been pretty much perfect - never defaulted on a payment, never missed one, make extra payments when I can, never use an overdraft, and have no credit card with them. Other than my current account, I only have the loan. As to why FD suggested they could demand full payment, well I dont know. When I was chatting to the adviser on the phone, she suggested I need to be careful as leaving Lloyds could mean they ask for payment in full. It had never occured to me prior to this, hence the reason I am now asking - to see if anyone else had come across this, experienced this, or had this happen to them

:-)