vicious circle of overdraft charges

Lloyds_Bank

tracey97 wrote: »

Hello
My son has a Lloyds overdraft of approx 2k. He arranged and used it when he had a reasonably good job a few years ago but circumstances changed and the job he has now doesnt pay as much,.
He is trying to pay it off but each month is getting charged between £50/£60 in fees so the debt isnt reducing. He asked LLoyds if he could take out a loan, pay off the overdraft and then at least the money he pays back to them each month is going towards paying off what he owes. They wouldnt allow him a loan, as he has the outstanding overdraft..and he will have the outstanding overdraft for ever at this rate. He also has a few credit cards

A lady I used to work with told me she once owed money on credit cards and somehow has managed to arrange to pay a certain amount per month which isnt breaking the bank. Its obviuosly not what the credit card company want as they occasionally phone her but she just tells them she is sticking to her side of the agreement. I dont work with her anymore so I cant ask her but how would my son be able to arrange something like this. Lloyds more or less said 'not a chance' - it seems that theyre happier to keep taking the charges each month.

Hi tracey97,

I'm very sorry to hear of the difficulties your son is having at the moment. While it's unlikely we'd be able to change the decision on his loan application, I'd recommend that he speaks with our team again to make it clear he's in financial difficulty. He can be referred to our specialist Customer Support Unit, who are in place specifically to help customers having similar problems to your son.

He can reach our PhoneBank team on 01733 347 007/0345 3000 000.

Thanks,

Graeme