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Explanation of letter
LittleBitLottie
Posts: 5 Forumite
I have received a letter today from Lloyds TSB. I have been paying back £10 a month since 02/04/14.
The letter states "If you do not pay off the full amount outstanding, we will allocate your payment to the outstanding balance in a specific order, which is set out below. The way in which payments are allocated can make a significant difference to the amount of interest you will pay until the balance is cleared completely.
Allocation of payments
Since no interest or charges are being applied to your account, your payment will be used to pay off your outstanding balance."
Sorry if I'm being dopey but this just makes no sense to me
The letter states "If you do not pay off the full amount outstanding, we will allocate your payment to the outstanding balance in a specific order, which is set out below. The way in which payments are allocated can make a significant difference to the amount of interest you will pay until the balance is cleared completely.
Allocation of payments
Since no interest or charges are being applied to your account, your payment will be used to pay off your outstanding balance."
Sorry if I'm being dopey but this just makes no sense to me
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Comments
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It is good news, well hidden.
It means all of your £10 payment will go towards paying off the debt - not to interest accruing.
So if you were accruing £15 of interest each month, then the £10 would go to pay the interest and not decrease the debt itself.
It's a generic letter, which they've personalised at the end, instead of just sending you a personalised letter0 -
Well, it's hard to be sure since you haven't said what it is that's being paid off. But I could assume that the amount you owe was frozen some time ago and that no more interest is being charged, so therefore in your case everything you are paying is going towards the outstanding balance. The first part of the letter is probably common to everyone that it gets sent to, while the second part is specific to you.0
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Ahhhh thank you so much!!!0
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Just a pedant remark: you didn't get a letter from Lloyds TSB as a company of that name does not exist now. The letter was either from Lloyds or from TSB.LittleBitLottie wrote: »I have received a letter today from Lloyds TSB.0 -
Archi_Bald wrote: »Just a pedant remark: you didn't get a letter from Lloyds TSB as a company of that name does not exist now. The letter was either from Lloyds or from TSB.
Very pedant indeed.0 -
LittleBitLottie wrote: »Very pedant indeed.
But very imprtant little detail!
Lloyds won't know about a TSB debt - TSB won't know about a Lloyds debt.0 -
jonesMUFCforever wrote: »But very imprtant little detail!
Lloyds won't know about a TSB debt - TSB won't know about a Lloyds debt.
although that's a minor detail for some...
The questions that get the best answers are the questions that give most detail....0
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