Are there different 'rules' for an overdraft debt & a loan debt

[cheesepie]

Hi everyone,

When you've helped me, get out in the sun!

Now, I had two loans with Lloyds. I couldn't keep up the payments, so (cutting it short) I asked them to close my bank account (which was clear) & stop taking payments. They wouldn't do this, they made my account overdrawn by taking the payments out of it each month and adding interest on the 'non-payments', then adding more interest.......

Now I'm being chased by a DCA working for Lloyds. The two loans and the overdraft have been lumped together in a big debt, are they supposed to do this, and if not, when I cca them, what should I say about the overdraft part of the debt as I obviously can't cca that, and I believe the rules are different regarding overdrafts

Any help on how to proceed would be gratefully appreciated!

[rory32]

The two loans and the overdraft have been lumped together in a big debt, are they supposed to do this,

They can but they are still two seperate accounts and can't just magically become one account.

when I cca them, what should I say about the overdraft part of the debt as I obviously can't cca that, and I believe the rules are different regarding overdrafts

Well there would need to be a copy of the agreement for the loan. The overdraft is a completely seperate account and if it is just made up of charges and interest on the charges you can just claim these back to reduce the balance to zero.

[cheesepie]

So, should I just cca them for the whole thing and see what they come up with?

And/or how do I 'claim' back my interest/charges?

[cheesepie]

Sorry, I mean should I cca them and let them split up the two loans and the 'overdraft' -just wait and see what they do....?

[BeauBrummie]

Originally Posted by cheesepie

Sorry, I mean should I cca them and let them split up the two loans and the 'overdraft' -just wait and see what they do....?

Hi Cheesepie,

I believe Rory was trying to say that you should send for copies of the agreements for the loans as seperate issues under the CCA. You should also send a S.A.R - (Subject Access Request) for the overdraft again as a seperate issue.

BB

[cheesepie]

Lloyds have put all the debts together (2 loans and an overdraft) under one NEW account number.
Should I cca them for this new account number (which they obviously haven't got a cca for) or refer back to old papers for the other numbers.

They haven't told us what this new account number is for... they just wrote and said I owe that amount under that account number.. which is the whole lot together.

[summer30]

I think this has happened with one of mine however the overdraft is all charges bar about £100, and the DCA is asking for payment with the overdraft number and the loan amount

Im going to CCA them to see whats what

[cheesepie]

My whole overdraft debt is charges and interest.....

[rory32]

Lloyds have put all the debts together (2 loans and an overdraft) under one NEW account number.
Should I cca them for this new account number (which they obviously haven't got a cca for) or refer back to old papers for the other numbers.

You certainly should ask for a copy of the agreement on this new account which has magically appeared.

[Pinky69]

I wouldn't acknowledge any new account - you didn't apply for either and a loan or an overdraft under that account number. If they have closed the old loan account and have amalgamated the loan with another account they canot ask you for payment for the original loan because it no longer exists - they closed the account and you haven't signed an agreement for any new account that would give you either a loan or an overdraft - they have shot themselves in the foot.

[BeauBrummie]

Originally Posted by Pinky69

I wouldn't acknowledge any new account - you didn't apply for either and a loan or an overdraft under that account number. If they have closed the old loan account and have amalgamated the loan with another account they canot ask you for payment for the original loan because it no longer exists - they closed the account and you haven't signed an agreement for any new account that would give you either a loan or an overdraft - they have shot themselves in the foot.

If this were true pinky how do you make it hold water in court, what you are saying would be a grenade in the foot not a shot, I say this because it is quite common for Banks to convert overdrafts into loans, so this would be a major coup for cheesepie????

BB

[tomterm8]

I would send them a S.A.R. and see what they are playing at. Lloyds current tactic is to terminate a loan account, transfer the debt to an overdraft, then terminate the overdraft. This is an attempt to get past the legal duties and it is, in my view, illegal.

[Pinky69]

What I mean is that they have opened a new account and put an overdraft and 2 loans into the new account. Cheesepie didn't sign to open a new account, he didn't sign for loans on that account and he didn't apply for an overdraft on that account. The accounts that had the original loans and overdraft have been closed so they are finished and the new account has no signed agreements whatsoever. The Co-op did this with another poster and when he pointed out the error of their ways, he hasn't heard a cheap from them since. In my view it is the stupidest thing a bank can do.

[cheesepie]

Thankyou very much all of you. This has cheered me up no end

I'm going to CCA the 'new' account number and see what they say..

I'll keep you all posted