Lloyds Bank pushed me to Bankruptcy

Storm1981

Hi.
Hope somebody could let me know if there is anything I can do now to claim a compensation from Lloyds Bank.
In 2017 in June I was already around 20 000 in debts. I been trying to pay all my monthly payments on time, but with so many of them obviously I was often late. My annual summary from Lloyds show, that in past year I paid £786 fee just for unplanned overdraft daily fee, returned item fee, overdraft usage fee (total 86 of them). In this time the only way with my salary 1420 to hand and some benefit (my partner don't work) I was try to get any loan's possible just to buy basic product and to pay of some loans. So in 5 of July 2017 Lloyd's accepted increasing my overdraft by over a £1000 to £4350 and on 25th of July to £4500, £4800 and finally to £5000 on this day. My annual statement for a year show, that my average debit balance was 2951.15 so really close to my limit at this time.
In Oct 2017 obviously Lloyds has change the way he charge for overdraft and from paying average £70 p/m (staying all the time close to my limit) now I face the fact I have to pay around £220 a months. Being in debt over £25000 at this moment went to bank to ask for 2 this:
- a loan to pay of my overdraft
- or for a big loan to pay off all of my debt.
Obviously bank refused and was even surprised how I manage to get £5000 overdraft and to have so many debt.

Went to my employer for help and a loan but he said so in my case the best would be go Bankrupt which I did in Nov 2017.

Now Bankruptcy help me a lot's, but It was not something I really wanted and until last day, I did not own to any of credit or loans company a penny and been trying hard to keep all of my payment's. But suddenly increasing a cost of overdraft from £70 to £220 and knowing that I'm unable to pay off this was the only reason at this time I have gone Bankrupt.

I feel like Lloyds Bank by accepting my Overdraft to £5000 and after that changing the way I have to pay for this did something really bat to me.

My question is, can I claim any compensation now from Lloyds for all this? Going Bankrupt for 6 years dramatically change my live being even unable to change now job as even renting a house is not easy.

Any advice what should do or where to ask for help or in my case I'm the only person been fault for my situation and should not blame anybody else?

[Deleted User]

No, you can't claim compensation.

When you live in an ever increasing overdraft, you leave yourself very exposed to any change in circumstances.

Flobberchops

I wish you all the best but asking your bank to increase your overdraft and then trying to claim compensation when they do as you ask just doesn't make any sense.

Storm1981

I just thought, so similar to PPI and also to miss sold live insurance which I know what I was signing for and after all I was able to get compensation back is similar with increasing overdraft. Littlewood had to pay back for people, who increased they credit limit and they kept they credit balance really close to they limit and also been paying only minimum monthly payments.
Something like this should aware Littlewood to "Do Not Incease Limit", they did it and people are able to claim some compensation back for this. This is just something I heard and I thought so may case was really similar.

Obviously somebody who is in Dept is trying any possible way to get some extra money. Bank should be aware of this and should check well, before increase overdraft. Very offten this is propobly automatic system which is sometime fail. System should prevent people who are really in trouble go even deeper in sh...

Lloyds should not allowed me to increase mu credit limit. Any way thank you for your replay

Paul_DNAP

No, it seems you asked for the extra lending facility and they agreed to it. Had they refused you would have probably found the extra credit facility elsewhere, and then you'd be asking Lloyds to compensate you for sending you to a pay day lender.


You need to take responsibility for yourself. It is not the job of the bank to look after your life and your choices, it is you and you alone who holds that duty. Everyone else is merely either advising you or selling their products, or both, nobody else apart for you has your best interest in the front of their hearts.

Paul_DNAP

Anyway, if you did get compensation they'd probably only deduct it from what you owed them when you went bankrupt.

sal_III

Can't comment whether you are due compensation, I wouldn't thought so, but who knows.

Just came here to mention that Lloyds didn't push you into bankruptcy - your own actions did. Grow up and own it.

Storm1981

So why Littlewood is different? Why Littlewood have to look in to circumstances of person asking for increasing the credit limit, and now in many cases they have to pay back? And Littlewood is not the only company I'm aware facing this at the moment.

4 years ago it was obviously for me: I ready contract, accept, sign and is end of the story !!! I'm should know what I'm doing and take full responsibility. So where all this PPI came from? Where all this miss sold live insurance etc. People sign document's, and at least government take care of them and realised so bank got a many way's to get money from customers, play not fair by putting well knowledge manager on front of desperate customer and making him to believe he is getting something he need. Government is looking at many cases so I just hope Lloyds bank will pay one day for changing the way how he charge for overdraft.

Takmon

Storm1981 wrote: »

I just thought, so similar to PPI and also to miss sold live insurance which I know what I was signing for and after all I was able to get compensation back is similar with increasing overdraft. Littlewood had to pay back for people, who increased they credit limit and they kept they credit balance really close to they limit and also been paying only minimum monthly payments.
Something like this should aware Littlewood to "Do Not Incease Limit", they did it and people are able to claim some compensation back for this. This is just something I heard and I thought so may case was really similar.

Obviously somebody who is in Dept is trying any possible way to get some extra money. Bank should be aware of this and should check well, before increase overdraft. Very offten this is propobly automatic system which is sometime fail. System should prevent people who are really in trouble go even deeper in sh...

Lloyds should not allowed me to increase mu credit limit. Any way thank you for your replay

Do you really want to go down the route of saying your not responsible enough to manage your own finances so they need to make decisions for you?

Do you have someone now who manages your finances for you if you can't be trusted to do it yourself?

Storm1981

"Just came here to mention that Lloyds didn't push you into bankruptcy - your own actions did. Grow up and own it."

I did not though about bankruptcy until Lloyds has change charge for overdraft. Suddenly I had to pay £220 instead of £70 - that was a lot's. If they had a right to do this, I believe time will show as read some articulates that all this been investigated. Yes - 25000 in debs is only my foult !!! But even guy from Bankruptcy said, so by paying so much interested to all my bank over 10 years I paid off all I owned them long time before I gone bankrupt. I did not feel so it was unfair to anyone or this was easy resolution. Till last moment been paying everybody until Lloyds did what he did.

Flobberchops

From what you wrote, Halifax didn't mis-sell you anything, they gave you an overdraft facility that you asked for and presumably understood. You said the difficulties began when they restructured the overdraft fees - no doubt this wasn't desirable or convenient for you but they are allowed to change their account terms with notice. This notice period would in theory have been your opportunity to pay down the overdraft debt as it was about to get much more expensive, although I appreciate it's not as simple as that for somebody in financial hardship.



It's not a situation that's comparable to mis-sold PPI or a store card increasing customers credit limits without their permission. It also, to be honest, sounds like you were heading for bankruptcy anyway, even if the overdraft fees had stayed the same, as you mentioned your debts were growing over this period.



I hope the clean slate works in your favour, but what you really need to focus on are your own spending habits and attitude to debt, not trying to apportion blame to companies and banks you've dealt with over the years. You need to live within your means, build savings for emergencies, and try to avoid debt.