Thread: Lloyds TSB Loan Agreements Missing

Hi to all

Our story is quite long and complicated but I will do my best to keep it short, outlining basic facts.

About 18 months ago we were 'courted' by a Lloyds business development manager to transfer our business banking to Lloyds, in exchange we wanted £100k to see us through our next year’s trading and the finances to purchase and develop a farm we were after.

BDM agreed this wouldn't be a problem so we started ball rolling by opening the account, we signed forms (in our own names, trading as.... Not ltd co)and BDM said he would fill in details as he knew what bank wanted to hear. At this point we offered security to back up the loan but was always told that it wasn't required.

After using account for few months we asked that the promised loan/overdraft be put into place. £50k was credited to account but we soon realised we were incurring un-authorised borrowing charges. Asked at local branch why this was happening and was told that there were no loan facilities on the account even though by this time we'd used about half of the money.

We later approached BDM again to transfer the 2nd £50k to our account because as expected the economy was hitting down turn and as we had planned and requested we needed this 2nd £50k to see the business through this bad time, we again offered to securitise the loan against property. We were told that this wasn't necessary. Nothing happened for while as BDM wasn't available for several weeks.

Then area director got in touch to say he had piles of paperwork in front of him that were about us and our business and that it was hell of a of mess. Had meeting with same area director, we complained about the lack of service we had received from Lloyds and the next day we had long e-mail saying how sorry director was to learn we'd been treated by BDM and he would 'pull some strings' to get us back on track and report back to us following Monday.

We heard nothing for several weeks and then 'out of the blue' we had call from director asking for us to put security in place for the loan and that in this climate Lloyds do not have appetite for any further lending.

I phoned and requested copies of all forms we may have signed to be told that it didn't seem as though any existed. I have also written to Lloyds asking for these copies and am still awaiting reply.

We have formalised our complaint, Lloyds replied by saying that they do not believe a BDM would have agreed this funding without requiring security but as gesture of good will if we pay off the £50k then Lloyds will repay the £450 odd taken for un-authorised borrowing and they would give us £250 compensation.


Lloyds have gone very quiet and we are beginning to think that because we have not signed any loan or overdraft agreements that maybe they have a problem there end and they cannot enforce anything.

Any advice please

Mungos Mum