Asking bank to freeze account?

Johan_Kellar

I don’t know if this is possible (someone mentioned it in a comment on Facebook) but can you ask your bank to freeze your account & arrange repayment of your overdraft?

I’m with BoS just now and have had a overdraft for years but after having to give up work due to illness, I’m constantly living in it. Now, with their new charges, I’m paying almost double in fees each month and it’s not sustainable.

I saw someone write that if I open a new account, transfer my benefits & direct debits to it, I can ask BoS to freeze my account & let me pay the overdraft with no more interest/fee.

Is this true? If so, how do I go about this?

Thanks

worried_jim

Yes it’s true. Open another account that isn’t connected to Lloyds banking group and get everything transfered over. Contact BoS and explain your issue and affordability and see if they can help you. Best of luck!

jonesMUFCforever

I would go through one of the debt charities to do this.
CAB or stepchange can arrange this for you.

Do you have any other debts?

fatbelly

There's an initial holdingletter here

https://www.nationaldebtline.org/EW/sampleletters/Pages/Hold-action-on-your-account-%28sole-name%29.aspx

JuicyJesus

worried_jim wrote: »

Yes it’s true. Open another account that isn’t connected to Lloyds banking group and get everything transfered over. Contact BoS and explain your issue and affordability and see if they can help you. Best of luck!

I don't think it's true that you can send them a letter to get them to suspend fees and interest with no questions asked.

fatbelly

A requirement to offer breathing space and 'consider' stopping interest an charges for those in financial difficulty is included in the industry codes of practice that cover almost all of the major UK lenders and debt collectors. These include:

•Credit Services Association code of practice
•Lending Standard Board lending code
•FCA rules (CONC 7.3.5)

The requirements apply mainly to consumer credit debt, such as bank accounts, credit and store cards, personal loans, catalogues and car finance.