Letter suggestions?

reetnproper

Hello,

I originally posted the below thread on the bank charges forum and got a couple of replies (thankyou) but decided to concentrate on my reclaimation process first. I'm still working my way through the timetable but now feel I need to address this aspect of my 'relationship' with Lloyds TSB and would really appreciate some guidance.


Hello,

I'm new to this forum and have only just started the reclaiming process.

However, I have a bit of a twist to my bank charges scenario which I can't find any templates for. I can't believe I'm the only one who has/had this twist so decided to post here for any advice/experiences on how to deal.

When I got into bother with my bank, they initially put my account into 'special measures' and charged me nearly £300 for the priviledge. I paid a set amount back off the overdrawn amount, interest free for 6mths and then, because I had proved myself reliable, you understand, they offered me a long term solution. Actually offered isn't quite the right word as I really didn't have any other options other than to pay the entire amount back immediately which was out of the question. Their long term solution was a loan - £49.69 per month, for 80 months. This is significantly more than I owed them in the first place and the vast majority of that is charges.

My question is, how do I go about trying to get them to terminate the loan and, if possible, repay the installments already collected? I suspect that I need to address it early on (letter 2 for example) but how do I word it? I still find it hard to believe that they could legally press this loan on me without giving me other, viable, cheaper options. I couldn't have gone else where as my credit rating was shot to pieces by then.

Any suggestions or similar experiences would be gratefully recieved.

Many thanks
Reet.

Other relevant information includes that the interest rate is around 16.4% (letter is locked away in attic for safe keeping - will get dh to retrieve it over the weekend) and I think the months are actually 70 not 80.

My main concern is that Lloyds have already profited from me in the form of bank charges and are now doing so again. They were also unable to offer me any solution (other than for me to pay-up immediately) when I asked them for help IMMEDIATELY, I realised I was going to go overdrawn. I cancelled all non-essential outgoings but still need to pay for groceries, car insurance and a loan I already had with them. I repeatedly asked them, over a 4-5 month period, to help me find a workable solution but it wasn't until I was around £800 overdrawn that they finally agreed to put my account into special measures, thereby allowing me to pay for my essential outgoings whilst paying a certain amount off my overdraft and existing loan.

I am now ready to try and get them to overturn the loan but am unsure how to word the letter. I don't think I am the only person who will have had to deal with this scenario. I'm also aware that I need to be repsonsible for my overspend, but the charges and the high interest rate seen unreasonable to me.

Any suggestions would be gratefully recieved.

Many thanks
Reet

Rafter

Reet,

With a poor credit rating you had little option but to accept their loan from the looks of things.

You should certainly take some advice from Citizens Advice and CCCS if you are still finding it hard to make payments and keep on top of your credit.

You should also look to reclaim your charges and request 6 years worth of statements from Lloyds TSB to work out how much you have paid over the years. Most court claims are on hold pending the outcome of a test case next year, but it is still worth claiming as otherwise charges from 6 years ago will be excluded as you can only claim back 6 years under uk law.

By your own admission though, you had built up debt and an overdraft which you are obliged to repay.

Although 16.4% is a high interest rate, you are only making small payments and have a poor credit rating so it may be the best you will get - it is certainly lower than the average credit card these days.

Good luck

R.