Lloyds Bank & my DMP

BarginBetty79

Hoping someone here can help out.

I've recently set up a DMP with Stepchange who have been really helpful but after reading various things on different debt support forums I'm getting very worried now.

My main debt is with Lloyds bank in the form of a loan and credit card. My main worry is that they will keep adding interest each month and the debt with them will not go down. I've read a lot of posts from people that have had trouble with Lloyds and wanted to know if anyone else has been in a similar situation or been successful getting interest frozen or reduced.

I'm really starting to worry now I've made the wrong decision as I've not seen any positive posts about Lloyds dealing with DMP's!

Meatloaf1981

Hi Betty, good to see you back on here with your DMP now in force.

Please don't worry about Lloyds and whether they freeze interest or not, there are ways and means of dealing with them to try and encourage them to freeze interest but it can be difficult to use the methods suggested when going through Stepchange as they will want every creditor treated fairly (Not an unreasonable request in most circumstances). You may find that Lloyds DON'T stop the interest adding to your debts, but given you have now informed them you are in financial hardship, if they continue to add to your debt by heaping on unreasonable amounts of fees, charges and interest then you can often develop grounds for a claim for unfair practice as they are supposed to support you in your efforts to repay the amount you owe, rather than add to it. In the beginning of a DMP, creditors WILL add to your debt to start with as you incur default charges and the like, but you may need to simply wear these as par for the course until the DMP is fully underway and you have been paying for a few months.

Keep on top of the fees and charges situation by obtaining regular monthly updates on the balances owed from the creditor themselves rather than through Stepchange, as Stepchange don't have access to the creditors' computer systems to know how much you owe and are only updated periodically. If you find charges are still being added after several months, or interest is continuing to put you further in the red, speak with Stepchange about making further contact with the creditor to request again that this is stopped.

Remember, they are under no obligation to stop the interest or charges as a DMP is an informal agreement. If you find it isn't working for you, review your options with Stepchange again as it might be that if the debt you owe is significant, then you might have to consider an IVA instead.

You may, of course, have nothing to worry about. I had similar issues with Barclaycard where I thought they would charge me interest but because I pay less than 1% of the balance each month, they don't charge me interest. Lloyds may be more understanding with you than they have been with others. Remember, we tend to hear more from the disgruntled customers than we do the good news stories!

Have a little faith, try not to worry!

BarginBetty79

Many thanks for your reply, I'm so greatful to have someone explain everything to me. Although Stepchange do explain I find I'm so anxious when I call them it goes in one ear and out of the other!

I have kept my internet banking with Lloyds so will make sure I keep track each month of everything paying off or being added to the debts.

Many thanks again for your help, I think I'll stop googling eveything and stick to these forums rather than worrying myself with frightening stories lol!

Meatloaf1981

People can advise you of what has happened to them but until you have had an experience of them yourself, it's best to simply wait and see. And remember, there is nothing to fear! Debt is only a number, not a death sentence!

Puzzcat

Hi Betty,


If things don't settle down and Lloyds continue to add on interest and charges you can write to them asking them to stop as a complaint and if this doesn't get the right results you can complain to the the FOS. No guarantee but if you don't try you don't get..


TTFTM on the dmp mutual support thread posted a template letter today which may be of use to you.


Puzz. x