Still charging

continualdiamond

Im a bit annoyed/confused/upset at the moment with the Lloydstsb.

Where soon to start our DMP with payplan, 1st payment due 22nd Jan. The lloydstsb have been one of the worst creditors to deal with, forever ringing and as much as i keep repeating myself and them telling me they'll add the information to the file, they still call back.

We opened a new bank accoumt, but as the old one with the tsb has an overdraft, obviously the account is still open, but not used. The tsb without our consent increased our overdraft by £100, this of course covered overdraft fees, but of course as they continued to charge overdraft fees kept pushing over the overdraft limit.

Now because where £200 over the limit, which is only due to the fees they keep adding, now they have charged us £215 :eek: in overdraft fees.

Why????, why would a creditor due this and thus increase a customers debt with them?? They know where dealing with payplan, i just don't understand, especially as its such a big charge added on.

hitback

Hi

The best thing to do would be to open an accouont where NO overdraft facility is available full stop! I would move right away from Lloyds TSB! To answer your question, Creditors do this to make even more money! People in Debt are far more profitable to banks than those who ar not!
We had an account with Nat West but as soon as we took out a DMP they issued a rebank order which meant we had to open an account with another bank - best thing we ever did! Sadly banks have not yet woken up to the fact that throwing money as a lifebelt to people who are in debt does not work!!!!!

immoral_angeluk

if there is a monthly overdraft charge you need to think of this as any other bill. If you can pay it then you will save yourself a lot of hassle and money but it's worth clarifying your position with payplan.

debrag

I have the same problem with TSB and I've been with payplan since march 06.

You will get times where you won't hear from them, then they will ring every few days, then leave you with a text to call them, then nothing then it starts again!!!

I have to admit that after a while I gave up ansering the phone

continualdiamond

Sorry i confused you hitback, where not banking with the TSB anymore.

We opened a new bank account with no overdraft facility with Natwest. But due to having an overdraft on our old TSB account, its obviously been included in our list of creditors and is still open, but not used at all.

It's just made me angry as where doing everything we can to pay back our debt. 1st admitting the problem and getting help i see for anyone as a big step. But for them then to add this £215 charge on, has just increased our debt and time it will take to become debt free.

No montly charge for the overdraft, its simply overdraft interest and now this fee.

Quiet interesting is that my OH has a debt with the TSB in the form of a credit card, now i know its all seperate, but the credit card department at the TSB has stopped all interest.

Yet they won't stop it on the overdraft....

angelavdavis

As others have said, they are just out to make more money out of you - completely in breach of the Banking Code of course, which says :

• We will deal quickly and sympathetically with things that go wrong and consider all cases of financial difficulty sympathetically and positively.

Obviously, they missed out the bit that says "provided we can continue to make as much money out of you as physically possible"

As suggested, take out another account elsewhere and move your salary and bills to there, ensure you keep to a budget and throw any excess money at the overdraft.

Speak to Payplan asap to understand your position here too.

And don't forget to start a bank charges reclaim process - hop over to the other forum to get this started.

continualdiamond

I have got another bank account, its with Natwest, has no overdraft facility and this is the account we use for everyday living, wages and bills go in/out etc.

Thanks for the advice though, at this stage i have no excess money to throw at the old bank with the overdraft, but once my payments commence with payplan, i might.

Thanks for the tip about bank charges, will hop over to that board next.

debrag

I'm claiming back charges with all my creditors as soon as I have the £10 for each of them, may start 2 with next pay.

Payplan:

Please bear in mind that Payplan have no control over creditors charging their clients interests and fees.
They are within their rights to do this. However we understand that if these are charged, then it takes longer to clear your outstanding balances. Therefore we will contact the specific creditor and request that interest is frozen and any additional fees are removed.
If a creditor agrees, then they usually start with a six month interest free period.
After this time, we will need to re-send the request and await their reply.
If the interest is not frozen, then nearer the end of the arrangement we will request that all interest that has been added onto your account is written off. From experience, we find creditors will do this.

danielleindebt

it took lloyds 6 months to agree to my d.m.p and they have told the c.a.b they have stopped interest but guess what they havnt. c.a.b are putting an offical complaint to the offical ombudsmen about them they are a bluddy disgrace

wysiwyg68

Hi We have been in a dmp with payplan for 3 years and were told not to make extra payments to any creditors involved in the dmp as the other creditors dont like it and will accuse you of 'favouritism'. Things with TSB should calm down after they have started to receive payments from payplan. Hope this helps
Debbie

debrag

yep creditors will find out that you've paid someone else Kinds of annoying coz I'm wanting to pay off my smallest debts