lloyds personal loan

ping_pong_pete

hello
In brief I took a 12,000 pound loan with lloyds tsb bank which was a personal unsecured loan over 5 years. after 3 years without missing a payment I got into financial difficulty. I had ask for a payment holiday but was refused I then didn't make any further payments and no negotiations were had regarding settlement. the bank then took me to the county court and secured the loan on my property. they did say that they would never consider forcing a sale but who knows if policy will ever change. my question is can the bank change my unsecured loan to a secured loan in this manner and if so should it not have given me this warning before I took an unsecured loan. had I known this was a possibility I would never have taken this loan and put my house in jeopardy
thanks pete

Foxy-Stoat_3

ping_pong_pete wrote: »

hello
In brief I took a 12,000 pound loan with lloyds tsb bank which was a personal unsecured loan over 5 years. after 3 years without missing a payment I got into financial difficulty. I had ask for a payment holiday but was refused I then didn't make any further payments and no negotiations were had regarding settlement. the bank then took me to the county court and secured the loan on my property. they did say that they would never consider forcing a sale but who knows if policy will ever change. my question is can the bank change my unsecured loan to a secured loan in this manner and if so should it not have given me this warning before I took an unsecured loan. had I known this was a possibility I would never have taken this loan and put my house in jeopardy
thanks pete

They haven't changed the loan from unsecured to secured, they went to court, obtained a CCJ and when you didnt pay or make any attempts to part pay or make a payment plan they have the only other recourse than to take out a charging order on your asset.

They probably will never force a sale, but if you ever want to move or if the worst was to happen, they will get paid in the end.

Are you back in work now and can you enter into discussions to pay down the remaining debt, which will be bigger now as they will add the legal costs.

Good lucks

ping_pong_pete

yes I'm working now and do know i shall definitely repay the loan. I have no intention of ever selling my home but find it difficult to see how they have not secured the loan on my property. but I understand your point thank you.
Peter

Foxy-Stoat_3

You will be able to get another mortgage for a good few years as your credit file would of got trashed when you stopped paying, you will probably have unsettled defaults as well.

I would save up a couple of thousand then contact the lender/collections agency and make a lump sum payment and a repayment plan.

dealer_wins

Its just a way to ensure they get their money back that you have borrowed and failed to repay as agreed. Its sanctioned by a court and judge so nothing underhand.

As others have said best to agree a repayment plan with Lloyds and get the loan repaid as soon as you can.