Advice needed please xx

**lynd2q3** · 23rd January 2010 01:17

Hi

Thanks for reading this.

In 2007 as a student I had a maxed out overdraft icon

of £2000. The bank suddenly took this off my on the day my student loan went in, they offered no explantion why.

I rang up and they basically said to me either drop out of uni or we can turn this into a loan for you. I was so scared of course I took out the loan, I didnt sign anything and they did it over the phone.

The Loan I took out was a ltsb icon

CCD Refinance Loan > 25k.

I now pay it back at £20 a month, £10 off the loan and £10 interest. So as you can imagine the balence is not coming down very quickly.

This is what I wanted to find out about?

1) Is it even legal as ive not signed anything and the loan was given instantly?

2) It the interest rate too high?

3) Now I hve a job Im worried they can just take my wages away when they like, is this true? The loan is set up as a separate account but I also have a current account, can they just take money out of any of my accounts.

Thanks for your time

Lynda Cooke

**MandM** · 23rd January 2010 02:08

Are you serious - you've never signed ANYTHING for 25K!

**boswell** · 23rd January 2010 02:14

Did they not even send the agreement in the post?
yes they can offset money from your current account to pay loans and Credit cards, but as long as your upto date that wont happen.
If they did you can always transfer to another account.
But as M&m says, i cant believe you never signed for £25k.

**lynd2q3** · 23rd January 2010 02:36

No they didnt send the agreement in the post, ive never signed anything.

I didnt sign for anything but the loan was for £2000 not 25k! which is a bit worrying now you have mentioned it because I clicked and pasted that, I think it ment for loans up to 25k! but mines was deffinitly for 2000.

I am up to date with payments, are you sure they cant do what they did with my overdraft icon

and just take it back when they want? I have two account with the bank they one where my wages go in and one where the loan comes out. Are the accounts linked? can they take money out of my 'wages; account to pay the loan???

**boswell** · 23rd January 2010 13:23

Well i'm not to sure what a CCD Refinance Loan is, could it be something that has been tagged onto a previous agreement?
All accounts are linked with Banks and they seem to do what they want when you miss payments, i am with Lloyds icon

as well and when i missed payments on my Loan and CC they took payments from my current account as long as it was upto my overdraft icon

limit.
Overdraft facilities can be withdrawn at any time, but if they do it is usually for a reason such as your account in default or you continually abuse it.
I have an agreed overdraft with my branch that i have had for a couple of years and it is reviewed anually, the next one is August, aslong as all is ok they usually continue it or reduce it in stages, but they can also swipe it back altogether if there are serious defaults on your account.
But i wouldn't worry too much about that at the moment.
Can you post more details about the CCD Refinance Loan so people can have a look at it and advise.
Cheers.

**darlilng1** · 5th February 2010 11:56

Lloyds

helped themselves to the wages that came into the account to pay Credit Card arrearsthat we had been unable to pay as OH was made redundant icon

- leaving us with no money to feed the kids or pay for petrol to get OH to work in his new job Lloyds were not interested at all in our circumstances.
We have opened another basic account, at Barclays icon

with just a debit card - with no OD facilities etc, therefore no chances of charges and feel alot safer now!

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