Lloyds Bank pushed me to Bankruptcy

boo_star · 3 July 2019 at 6:41PM

Humdinger1 wrote: »

Storm

If you're still struggling, have you considered talking to one of the free money charities such as CAP? They can help you work through any situation, negotiate with all creditors etc. You sound stressed. Good luck and keep us posted

There's no suggestion the OP is struggling with debts, particularly as they already went bankrupt.

Storm1981 · 3 July 2019 at 11:08PM

eskbanker wrote: »

So Lloyds lent you £5K and you didn't pay any of it back (just the interest, initially) before going bankrupt and they've therefore already lost £5K to you, but you'd like some more?

Lloyds increased my overdraft from 3k to 5k (after my application). 3K I had for over 8 years. Each year I paid over 80 fee on my overdraft (according to my annual summary) and last year that was for example 786 pounds just for late payment etc not including a cost of my overdraft which was around 50 pounds a months. So in total Lloyds got off me at least 10K over this year's plus 70 pounds a months for 6 month's having 5K overdraft. When I gone bankrupt I was 4600 in dept so Lloyds did not lost in my case. After all they decided to charge me 220 pounds a months with 1 month notice.

Storm1981 · 3 July 2019 at 11:29PM

The idea is (and is not mine but this is what gov trying to do) to not lend money to people, who are really deep in they debt. No, I'm not struggling and after bankruptcy I'm doing really well. I'm not in stress at all because over 8 years all the time the easiest way to pay off my loans, was to borrow more. Now I do not have to worried, how I find 1K each month to pay of all my payment's I had.

The point is, that Lender should check well before borrow some more money. I said that I was paying off all my credit, but the £786 fee for a whole year that was all because I was late to pay something "Unplaned Overdraft Fee" or "Returned DD". That should be enough for bank to say NO to me, but they have seen so after all I'm paying everything and they even make extra money just of all this (one "Redurned DD" cost me 5 pounds) so they wanted to keep a great customer and suck from me every single penny. This is how I feel. And it look like everybody ignoring the fact, so it is not my wish that bank should say NO to people like me, but it is they duty, something they obtain to do by tle law.

jonesMUFCforever · 3 July 2019 at 11:40PM

Storm1981 wrote: »

The idea is (and is not mine but this is what gov trying to do) to not lend money to people, who are really deep in they debt. No, I'm not struggling and after bankruptcy I'm doing really well. I'm not stress because over 8 years all the easiest way to pay off my loans it was to borrow more. Now I do not have to worried to find 1K each months to pay all of my payment's I had.

The point is, that Lender should check well before borrow some more money. I said that I was paying off all my credit, but the £786 fee for a whole year that was all because I was late to pay something "Unplaned Overdraft Fee" or "Returned DD". That should be enough for bank to say NO to me, but they have seen so after all I'm paying everything and they even make extra money just of all this (one "Redurned DD" cost me 5 pounds) so they wanted to keep a great customer and suck from me every single penny. This is how I feel. And it look like everybody ignoring the fact, so is not my wish bank should say NO to people like me, but it is they duty, something they obtain to do by tle law.

That's your version of events and there is nothing wrong with it BUT you have to explain fully to us what would you have done if they had turned down your requests for increased overdrafts?
You might well have had more unauthorised borrowing fees and unpaid item fees?
Are you really expecting us to believe that if they had said no you would have left it at that or would you have looked elsewhere for funds?
Who else do you owe money to? If the bank charged you for returned items did the D/D originators also charge you for failed payments? Why are you blaming Lloyds and not your other creditors?

At the end of the day you were spending more than you earned.
There lies the problem.

eskbanker · 4 July 2019 at 12:30AM

Storm1981 wrote: »

eskbanker wrote: »

So Lloyds lent you £5K and you didn't pay any of it back (just the interest, initially) before going bankrupt and they've therefore already lost £5K to you, but you'd like some more?

Lloyds increased my overdraft from 3k to 5k (after my application). 3K I had for over 8 years. Each year I paid over 80 fee on my overdraft (according to my annual summary) and last year that was for example 786 pounds just for late payment etc not including a cost of my overdraft which was around 50 pounds a months. So in total Lloyds got off me at least 10K over this year's plus 70 pounds a months for 6 month's having 5K overdraft. When I gone bankrupt I was 4600 in dept so Lloyds did not lost in my case.

Well OK, it was £4600 you owed them, but that's still money they lost because you didn't repay it - what you'd paid in charges and interest before that is irrelevant so the point still stands.

Storm1981 wrote: »

After all they decided to charge me 220 pounds a months with 1 month notice.

That's not how it was - the Lloyds Banking Group announced on 12 July 2017 that they were restructuring their overdraft charges but that they wouldn't take effect until November, i.e. four months later.

https://www.lloydsbankinggroup.com/Media/Press-Releases/press-releases-2017/lloyds-banking-group/release3/

https://www.moneysavingexpert.com/news/2017/07/lloyds-banking-group-overhauls-overdraft-fees/

https://forums.moneysavingexpert.com/discussion/5678124/lbg-change-overdraft-charging-structure

vacheron · 4 July 2019 at 7:37AM

Storm1981 wrote: »

He was aware I'm in debs, but ignored this because I was regularly paying off everything.

Do you appreciate how many millions of people are in this same situation you describe? The banks don't have the resources to monitor every person whose debt has increased by a few £100.
(and no, I don't work for a bank)

However I have seen plenty of messages on bank statements and websites saying "Are you struggling with money or concerned about your financial situation? Please contact and see if we can help".

Did you let them know you were struggling at the time so that they could help , or did you just keep accepting more money?

Blackbeard_of_Perranporth · 4 July 2019 at 8:35AM

My overdraft with Lloyds was £50. I reduced it to nought.

I suggest OP starts to live within their means, Lloyds are not a magic money tree!

radoslaff · 4 July 2019 at 10:18AM

"I'm not in stress at all because over 8 years all the time the easiest way to pay off my loans, was to borrow more."

And this is where the problem actually lies. The OP was not stressed that they would need to repay their loans. Just continued to borrow more and more. Brilliant tactics really. And now somebody else is supposed to reward them for this. And all this considering that the other people that deal with the banks (virtually everybody) had to repay OP's debt after they went broke through interest and fees (a bank will never loose to the minions). This is disgusting really.

Humdinger1 · 4 July 2019 at 10:50AM

Appreciate the point that bankruptcy wipes out debt. What I'm seeing is that root causes of overspending may not have been addressed so it could all build up again. OP, CAP isn't the only way but they do run budgeting courses that help address how you think about money. This might be worthwhile for you.

Humdinger