Bounce back loan blackmail

Lespat

We toke out a business loan from Lloyds in 2006, which was secured on our house.  It was repaid in full two years later, in 2008.  We toke out a BB loan last year, of £13k.  We then came to sell our house in June, and discovered the security was still on there in error from 2008.  Our solicitor told lloyds then had to remove it, which they said they would, one month later, the day before completion, it was still showing, she emailed LLOYDS again to say they must remove this, they sent my solicitor an email, saying they will only remove it on the condition the BB is repaid in full.  Our solicitor said this unacceptable as BB loan can not be secured on property.  However because we only had a day as our house sale would fall through she had to make a solicitors promise to our buyer and we had to pay the loan back that day.  Now we have complained to LLOYDS, they have offered to pay our out of pocket expenses to our solicitor and offered us £200,  I was so stressed over this.  I want to take this further but do not know where to start.  They (LLOYDS) blackmailed us into paying that BB loan.

[Deleted User]

If you're unhappy with their offer, you can go to FOS.

You may get more, or less, than is being offered.

Lespat

It’s not the money I want someone to know what they are doing to people 

Jeremy535897

Unfortunately the banks, like many other organisations, seem to view coronavirus as some sort of authority to treat customers appallingly. One current favourite is to freeze traders' bank accounts without good reason and without notice, in breach of the rules they are supposed to operate by, so that the traders cannot pay their suppliers or bank their takings.

gt94sss2

Lespat said:

It’s not the money I want someone to know what they are doing to people 

As well as complaining to the Financial Ombudsman, you can write to your MP with details of Lloyds behaviour, asking them to contact the relevant government minister/department - which they are likely to do by forwarding your letter to them (so make sure it includes any relevant facts) - so that your concerns can be addressed.

This is most likely to either be a Minister from the Treasury or BEIS (which is responsible for the British Business Bank).

A Civil Servant may will write the response, but the Minister will see it before they sign the reply to your MP.

warby68

I'm not sure they blackmailed you. You may have got a perfect storm of bank staff who did not understand the BBL conditions and went off 'old' rules. I'm not sure why your solicitor went along with it if they clearly understood those rules. Did noone ask the Bank's staff to refer up their line?

Nonetheless, I would reject the offer and ask to be put back in the position you were before this 'forced' repayment if that's what you want. Bank does seem to have conceded fault and it is quite a big one in my view.

I'm not sure you can start a 'this is what they are doing to people' campaign unless you have evidence of it happening to others but others have given you the options.

justwhat

Tell them you want 1k. i assume the extra solicitors expenses are negligible.

Its a bank error. However it could have had very serious repercussions. 

To get the 1k you will have to lay on the fact you were inconvenienced.  Explain you were stressed , took up loads of your time and you had too sell your soul to sort the problem out.

You may want to remind them what could have happened if you had not managed to pay the loan back or your buyer had pulled out. You may also want to stress you will complain to other 3rd parties if its now not handled swiftly.(that will cost them money)

no point in going down the road off 'this is what they are doing to people' , it was an error by someone....who probably got reprimanded for it. 

[Deleted User]

gt94sss2 said:

Lespat said:

It’s not the money I want someone to know what they are doing to people 

As well as complaining to the Financial Ombudsman, you can write to your MP with details of Lloyds behaviour, asking them to contact the relevant government minister/department - which they are likely to do by forwarding your letter to them (so make sure it includes any relevant facts) - so that your concerns can be addressed.

This is most likely to either be a Minister from the Treasury or BEIS (which is responsible for the British Business Bank).

A Civil Servant may will write the response, but the Minister will see it before they sign the reply to your MP.

MPs won't do anything. If they are not Tory they will be ignored, if they are Tory they will ignore it.

Best bet is the newspapers. The Guardian and Daily Heil both love stories like this.

justwhat

[Deleted User] said:

MPs won't do anything. If they are not Tory they will be ignored, if they are Tory they will ignore it.

Best bet is the newspapers. The Guardian and Daily Heil both love stories like this.

i have actually found the opposite. We have had cause to contact MP's twice and both times it was only a tory MP that bothered getting involved. And i really never cared which MP helped out.(anyone would have done lol )