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Strange letter from Lloyds TSB re Credit Card Arrears - Comments please
I've received a letter from Lloyds regarding arrears on my card, that I'm not sure I fully understand.
I advised them sometime ago I was facing financial difficulties and was unable to keep up monthly payments.
Their letter is as follows:
You have missed payments and your account is in arrears. In order to give you a fresh start, we want to bring your account up to date and clear all of the payments that we have asked you to pay in the past which you have not paid (your arrears).
In order to clear your arrears, we need to make a change to condition 18.5 of your agreement. It will read "We may choose not to enforce our conractual rights against you and make this contractually binding against us by giving you notice which expressly states that we have chosen to do so under this term of the agreement. In all other cases, if we choose not to exercise rights against you, we can still do so later."
This letter gives you notice for the purposes of this new condition 18.5 the arrears standing on your account at the date of this letter have now been cleared. You will still owe us these amounts which form part of the outstanding balance on your account. However, you will no longer be treated by us a having missed any payments due to us and we will not be able to demand immediate payment of those arrears in future. Any new payments you miss going forward wil be treated as arrears on your account.
Yours sincerely Collections Manager
My question is "Why are they doing this and is there some catch?". I haven't been defaulted on this cca, nor have I asked for a copy of the agreement. What does it all really mean?
Re: Strange letter from Lloyds TSB re Credit Card Arrears - Comments please
It is strange,i can't help as to what it means,but my husband has received a call from Lloyds asking him if he wanted to save money by converting his credit card in to a fixed loan.I just started a thread about it,i'm not sure what there up to.
Is there something in the air,my husband said to the customer service rep,are'nt banks supposed to rip us off,not save us money
He does'nt have any arrear's or missed payments,i really beginning to think something is going on,but i don't know what.
I'm a suspicious personality anyway,Lloyds are normally one the worst banks to deal with when you have any problems.
Re: Strange letter from Lloyds TSB re Credit Card Arrears - Comments please
Originally Posted by bsj
It is strange,i can't help as to what it means,but my husband has received a call from Lloyds asking him if he wanted to save money by converting his credit card in to a fixed loan.I just started a thread about it,i'm not sure what there up to.
Is there something in the air,my husband said to the customer service rep,are'nt banks supposed to rip us off,not save us money
He does'nt have any arrear's or missed payments,i really beginning to think something is going on,but i don't know what.
I'm a suspicious personality anyway,Lloyds are normally one the worst banks to deal with when you have any problems.
As I understand it , and i could be wrong , if you had a potentially unenforcable credit card , by changing it to a loan they could then have have an enforcable agreement if pushed comes to shove .
Re: Strange letter from Lloyds TSB re Credit Card Arrears - Comments please
Originally Posted by Pumpkinhead
I've received a letter from Lloyds regarding arrears on my card, that I'm not sure I fully understand.
I advised them sometime ago I was facing financial difficulties and was unable to keep up monthly payments.
Their letter is as follows:
You have missed payments and your account is in arrears. In order to give you a fresh start, we want to bring your account up to date and clear all of the payments that we have asked you to pay in the past which you have not paid (your arrears).
In order to clear your arrears, we need to make a change to condition 18.5 of your agreement. It will read "We may choose not to enforce our conractual rights against you and make this contractually binding against us by giving you notice which expressly states that we have chosen to do so under this term of the agreement. In all other cases, if we choose not to exercise rights against you, we can still do so later."
This letter gives you notice for the purposes of this new condition 18.5 the arrears standing on your account at the date of this letter have now been cleared. You will still owe us these amounts which form part of the outstanding balance on your account. However, you will no longer be treated by us a having missed any payments due to us and we will not be able to demand immediate payment of those arrears in future. Any new payments you miss going forward wil be treated as arrears on your account.
Yours sincerely Collections Manager
My question is "Why are they doing this and is there some catch?". I haven't been defaulted on this cca, nor have I asked for a copy of the agreement. What does it all really mean?
Re: Strange letter from Lloyds TSB re Credit Card Arrears - Comments please
Originally Posted by Pumpkinhead
I've received a letter from Lloyds regarding arrears on my card, that I'm not sure I fully understand.
I advised them sometime ago I was facing financial difficulties and was unable to keep up monthly payments.
Their letter is as follows:
You have missed payments and your account is in arrears. In order to give you a fresh start, we want to bring your account up to date and clear all of the payments that we have asked you to pay in the past which you have not paid (your arrears).
In order to clear your arrears, we need to make a change to condition 18.5 of your agreement. It will read "We may choose not to enforce our conractual rights against you and make this contractually binding against us by giving you notice which expressly states that we have chosen to do so under this term of the agreement. In all other cases, if we choose not to exercise rights against you, we can still do so later."
This letter gives you notice for the purposes of this new condition 18.5 the arrears standing on your account at the date of this letter have now been cleared. You will still owe us these amounts which form part of the outstanding balance on your account. However, you will no longer be treated by us a having missed any payments due to us and we will not be able to demand immediate payment of those arrears in future. Any new payments you miss going forward wil be treated as arrears on your account.
Yours sincerely Collections Manager
My question is "Why are they doing this and is there some catch?". I haven't been defaulted on this cca, nor have I asked for a copy of the agreement. What does it all really mean?
Any thoughts would be most welcome!
Maybe it's got something to do with this and the more recent turnaround over PPI insurances on accounts etc..
I'd certainly get a copy of your credit agreement and see what they hold, chances are what they've got on you is duff??????
£21bn of credit card debt “unenforceable” - 25/09/2009
More than £21bn of the UK’s credit card debt is covered by unenforceable credit agreements and could be written off, according to financial claims management company Cartel Client Review.
Cartel has based its projection partly on an estimate from money education charity CreditAction that total credit card debt in the UK now stands at around £53bn. Cartel added that 40 per cent of all financial products brought to them for review can be claimed against.
The claims management firm said that an average client has 10 financial products, of which four can be claimed against.
Carl Wright, managing director for Cartel Client Review, said: "Previous estimates around the amount of unenforceable credit agreements put the figure at 25 per cent, but this does not tally with our observations. On average, I’d say our customers can claim against as much as 40 per cent of their credit agreements."
He added: "There are specific rules that lenders must adhere to when they sell a financial product to a consumer. If these have been breached, lenders should admit their mistakes and stop dragging their heels through the legal system. This only results in unnecessary additional legal costs for all involved."
Figures from CreditAction also show that the UK collective credit limit on credit cards is £158bn, which is an average credit card limit of £5,129 per person. The charity said the average interest rate on credit card lending is currently 17.6 per cent - 17.1 per cent above base rate (0.5 per cent).
The Bank of England announced earlier this month, however, that personal borrowing fell by £600m in July, taking the total owed by individuals down to £1.457 trillion.
Re: Strange letter from Lloyds TSB re Credit Card Arrears - Comments please
Many thanks for comments received so far. I am a bit worried about asking them for my CCA as I also bank with them..Is this likely to cause extra problems. Don't think I can open a parachute account anywhere as now have some DN registered against me, unless you can suggest otherwise?
Re: Strange letter from Lloyds TSB re Credit Card Arrears - Comments please
Originally Posted by noddyaccount
As I understand it , and i could be wrong , if you had a potentially unenforcable credit card , by changing it to a loan they could then have have an enforcable agreement if pushed comes to shove .
I had a feeling that may be the case as his agreement is pre April 2007.
I also thought that it could be to do with the MBNA court case,the woman got £8,000 quashed,as the PPI had been mis-sold.
OH has an appointment made for next week and i'm going with him,oh the joy,am i going to have some fun,i'll have sore shins when i get out from him kicking me under the table.
How will it affect the PPI claim we've made if at all,it's with the Ombudsman.
The main point being that if he were to take the offer it would be £6,000 converted to a loan,if were sucsessful with the PPI claim it will take it down just over £4,000.
Would the bank inform the ombudsman that the account had been settled,it's a matter of principle in claiming the money back.
In the long run we would pay less on a loan,i would rather convert £4,000+ than £6,0000.
Re: Strange letter from Lloyds TSB re Credit Card Arrears - Comments please
Originally Posted by Pumpkinhead
I've received a letter from Lloyds regarding arrears on my card, that I'm not sure I fully understand.
I advised them sometime ago I was facing financial difficulties and was unable to keep up monthly payments.
Their letter is as follows:
You have missed payments and your account is in arrears. In order to give you a fresh start, we want to bring your account up to date and clear all of the payments that we have asked you to pay in the past which you have not paid (your arrears).
In order to clear your arrears, we need to make a change to condition 18.5 of your agreement. It will read "We may choose not to enforce our conractual rights against you and make this contractually binding against us by giving you notice which expressly states that we have chosen to do so under this term of the agreement. In all other cases, if we choose not to exercise rights against you, we can still do so later."
This letter gives you notice for the purposes of this new condition 18.5 the arrears standing on your account at the date of this letter have now been cleared. You will still owe us these amounts which form part of the outstanding balance on your account. However, you will no longer be treated by us a having missed any payments due to us and we will not be able to demand immediate payment of those arrears in future. Any new payments you miss going forward wil be treated as arrears on your account.
Yours sincerely Collections Manager
My question is "Why are they doing this and is there some catch?". I haven't been defaulted on this cca, nor have I asked for a copy of the agreement. What does it all really mean?
Any thoughts would be most welcome!
Sorry pumkinhead,i did'nt mean to highjack your thread,i do have my own. so i'll ask for any advice to be posted on there instead please ,or your thread will get confused.
Strange letter from Lloyds TSB re Credit Card Arrears - Comments please
regarding arrears on my card, that I'm not sure I fully understand.
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Originally Posted by bsj
