Lloyds TSB - think they have broken OFT Guidelines

rayday2

We have been on a DMP for about two years now, in that we included our old overdraft which after a lot of correspondence finally got interest stopped and accepted payments. About a month ago we increased payments from about £1 to £4 and again they accepted for about 6 months.

Today I receive a letter offering full and final settlement offer without prejudice at about 50% (irrelevant we genuinely do not have the £500 needed!)

Anyway I was just going to file it away and ignore it but I decided to read it through. It was the following paragraph that got me..

"If you would like to discuss settling your account for a reduced amount, through the use of savings, alternative financing or from the help of a family member, we will be happy to talk with you."

I think thats the bit that breaks guidelines. I have always worried that Lloyds would push for a CCJ so just asking now in case in time I get a bit feisty if they do push for a CCJ.

Thanks

kel123_2

Hi Rayday

Office of fair Trading
Debt Collection Guidance
Final guidance on unfair business practices
July 2003 (updated December 2006)
(oft664)

2.6 Examples of unfair practices
(b) pressurising debitors to sell property, to raise funds by further borrowing or to extend their borrowing

Hope this is what you were after
Kel

ZTD

http://www.oft.gov.uk/shared_oft/business_leaflets/consumer_credit/oft664.pdf

2.6 Examples of unfair practices are as follows:
a. contacting debtors at unreasonable times and at unreasonable intervals
b. pressurising debtors to sell property, to raise funds by further
borrowing or to extend their borrowing
c. using more than one debt collection business at the same time
resulting in repetitive and/or frequent contact by different parties
d. not ensuring that an adequate history of the debt is passed on as
appropriate resulting in repetitive and/or frequent contact by different
parties
e. not informing the debtor when their case has been passed on to a
different debt collector
f. pressurising debtors to pay in full, in unreasonably large instalments,
or to increase payments when they are unable to do so
g. making threatening statements or gestures or taking actions which
suggest harm to debtors
h. ignoring and/or disregarding claims that debts have been settled or are
disputed and continuing to make unjustified demands for payment
i. disclosing or threatening to disclose debt details to third parties unless
legally entitled to do so
j. acting in a way likely to be publicly embarrassing to the debtor either
deliberately or through lack of care, for example, by not putting
correspondence in a sealed envelope and putting it through a letterbox,
thereby running the risk that it could be read by third parties.

rayday2

Thats just what I was thinking and I have it in writing! So if they do turn nasty and try for a CCJ I will hit them with a formal complaint and quoting those bits and follow through and report!

Thanks I just wanted someone else to read it neutral (neutral not being a hater of Lloyds!) in case the wording could be taken another way.

Thanks

stapeley

Yes thats out of order ! But I fear it will not actually help your case . The OFT should be informed AND THEY MAY WELL TAKE ACTION, BUT DON,T HOLD YOUR BREATH !

joncarpet

sorry to jump onto your post but im inrigued by what ZTD posted re unfair practices.
i was contacted by Wescot wanting payment for a debt from 2002. i asked them for evidence of the debt, statments etc and heard nothing. until yesterday when I got a Final Reminder theatening court action if i dont pay in full.
just wandering if this classes as breaking point H?

rayday2

http://www.oft.gov.uk/shared_oft/business_leaflets/consumer_credit/oft664.pdf

These are guidelines set down think they are supposed to supply information if requested have a read through. If that is the case write to them quoting the relevant practice they broke see how it goes.

ZTD

Just make sure you have a proper record of sending that request. They have "convenient" memories.

cassy

its agains guidlines to preassure, but its allowed to suggest it