Help for my bf - Lloyds TSB

Hi, my bf just called me to tell me that Lloyds have taken a sum of money from his current account to pay off an overdraft on another account.

The general gist of the conversation was that about a year ago he called the collections dept to agree a repayment scheme. As he understood it, he told Lloyds to set up a standing order of £50.00 to go from his current account to his other account to repay the overdraft.

About 3 months later they called him to ask why he hadn't been making any payments, he explained the above and they said that a formal arrangement was never agreed. He then told them again to set up a SO for £50.00.

He noticed about 3months ago (a long time for some but some people don't/ havent got time to take notice of their money) that no money was being taken and started making a manual payment of £50.00. Last week he received a letter asking him to make an arrangement or they would collect the full amount. He had called them 2 days earlier and nothing of this letter was mentioned in that call so he assumed that the arragement would be fine.

Today they have taken the full balance of the overdraft. He has called them and they have said that nothing on the transcript signifies that an agreement was made and it was his misunderstanding that there was an agreement. It was his responsibility to ensure the payments were being made etc.

He spoke to them on at least 2 occasions to set up the SO. He spoke to them last week and said he would be making manual payments.

I've said that he should complain that they did not follow his instructions. In my eyes he has contacted them when required and asked them to collect £50.00 per month, they have not followed through with this and are basically calling him a liar.

Where does he stand on this?


  • Iona_Penny
    Iona_Penny Posts: 697 Forumite
    First Anniversary Combo Breaker
    Good Grief ! The first lesson learned by coming on this website is that you have to find the time to 'notice' where your money is going ie. always check statement; online banking makes this even easier to do at anytime.

    That said, if these arrangements were agreed by telephone then don't the bank record these conversations? Perhaps your bf could get them to check the calls; also if he has a receipt for the manual payment then he could use this to show his intentions.

    I think you will have to wait for more knowledgable info. but I can't help but think the bank will say it was up to him to confirm the payments were being made.
  • debtbuster2K5
    debtbuster2K5 Posts: 1,515 Forumite

    I am no expert, but having read your post, I cant help thinking that he should have followed up all the phone calls with a written confirmation, or at least asked them to confirm the arrangement in writing. But hindsight is a wonderful thing.

    Unfortunately most if not all overdraft are repayable on demand, IE the bank can call back full payment at any time.

    I think it would be wise, as posted above to find out if any calls were recorded and go down that route. Other than that I think it could be quite difficult for him to prove.

    Sorry, as that is probably not what you wanted to hear.

    Good luck and let us know how he gets on..

    24 hours in a day. 24 beers in a case ... coincidence? :beer:
  • I know to check my money but as I have found from actually working in a bank many people do not, many people dont have time or have too much money (not in this case i might add lol) to check.

    They said that the transcripts from the conversations there is no mention of an agreement so my question is WHY was the call ended if no agreement was made.

    The payment will show going from his acc to the other acc, its the same bank.

    The bank may say its up to him to make sure the payments were made but he contacted them on at least 2 occasions and asked them to set up a SO, when he noticed it wasnt going out he made the payments, I dont get why after he made that call to say hes going to keep making the payments they have gone ahead with the full figure.

    Yeah there are human factors usually, but they are being particularly unsympathetic, as banks usually are.

    Thanks for your comments.
  • ceegee
    ceegee Posts: 856 Forumite
    Yes, hindsight is a wonderful thing!!

    Your bf should keep a regular eye on his not doing so in the past he has got himself into this mess.

    It appears that your bf only made phone calls. On matters as important as this, things should be confirmed in writing.

    I would suggest that he writes immediately to the bank and explains what he thought was that he thought these SOs had been set up. He deserves an admonishment from the bank, but by not getting in touch with them in writing there will be no record of anything and the bank will probably think he is ignoring the issue.

    It really is best for him to put it all in writing to the bank. I bank with Lloyds TSB and, although I've never been in dire financial straits, there have been times when I've needed a little assistance and they have always been happy to oblige, because I have done everything by the book, e.g. phone calls requesting an authorised overdraft (in advance) followed up immediately by a letter confirming the request...that sort of thing. Yes, it can be a PITA, but it saves hassle and expense later.

    Your bf needs to get his financial finger out and keep on top of his finances, instead of making excuses about time shortages. Look where his attitude has got him. If he doesn't write to the bank, with a full explanation, then I'm afraid he'll get what he deserves!

    Sorry if that all sounds harsh! :cool:
    :snow_grin"Let it snow, let it snow, let it snow........":snow_grin
  • Malestrom
    Malestrom Posts: 983 Forumite
    Agree with ceegee i'm afraid, you need to make time when money is concerned and 12 months to get from a verbal agreement to the current conclusion of events is stretching it a little. Admittedly he has made some effort here with the phone calls and manual payments but banks are notoriously poor at keeping records of verbal agreements, especially when said agreement would show the bank is at fault.
    He huihuinga taangata he pukenga whakaaro – A meeting of people; a wellspring of ideas (Maori proverb)
  • I've told him to write in but hes wimpish when it comes to things like these, hes very laid back about everything and it has got him in a mess, reason im sticking my nose in this time is its ruined my month as he has no money and i had plans to visit my friends with him (friends live far away).

    Anyway, I think I'm gona tell him to go to the bank in person with his letter, speak to them then pass on any comments in writing.

    Its common for people not to check their accounts and when they have asked the bank to set up a payment why should they assume its going to go wrong, i know it does but theres an element of trust there.

    Its annoying that if they say there was never any agreement made, why they ended the call without making one and if they didnt make one on the phone why they didnt do so in writing.

    Unless i dont have all the facts and they did, in which case im gona kick his @ss

    the other thing is, if they are saying that he hasnt made an agreement to pay off and theyve had to take it all in one go, is that gona effect his credit?

    My friend has had numberous problems with Lloyds, your one of the lucky ones
  • Justin_Credit
    Justin_Credit Posts: 157 Forumite
    Can a standing order be set up without a signed form or letter? I'm not sure that any bank would set one up over the phone without the required signature.

    It may be common practice that people don't keep a close eye on their accounts but that doesn't make it right. Your bf needs to get a grip and take control of his finances.

    I know this is not what you would like to hear but I agree with some of the other posters on here and feel that he is certainly partly, if not wholly, responsible for the situation he finds himself in.

    If he is being wimpish about this perhaps you could go along to the bank with him to try and sort it out.

  • The collections department will arrange transfers between accounts and if not should send out forms.

    Your comments are valid however I can see both are to blame, but the bank arent gona come away with anything against them so its fair enought to fight it.

    I'll go to the bank with him of course, I thought of points that he did not.
  • jonesMUFCforever
    jonesMUFCforever Posts: 28,898 Forumite
    Name Dropper First Post First Anniversary
    If it has gone as far far as Collections then I'm afraid your local branch will not have any authority to deal with the debt. They should offer you a telephone to speak to ......................... wait for it THE COLLECTIONS CENTRE but you've been down that road already havent you?
    IMO write it all down and send it by recorded delivery with a note of the collections reference number and see what they are wiling to do. They might agree to refund some of the money back to the account if they can see that you are serious about sorting out the debt.
  • ceegee
    ceegee Posts: 856 Forumite
    Yes, he certainly has to take positive action and stop being so....... :eek: BONE IDLE :eek: about his finances...for that is what it boils down to. Keeping on top of your finances is absolutely vital. Yes, it may appear totally boring to some people, but it is vital nevertheless. Not keeping on top of them gets people into the sort of mess your bf is in. Is there any chance that he will learn his lesson from this??!! :cool:

    I hope it gets sorted satisfactorily because his attitude is doing my head in! :cool: :eek: :cool:
    :snow_grin"Let it snow, let it snow, let it snow........":snow_grin
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