Continuing Interest charges

[Slartibartfast]

I wrote to Lloyds last year explaining difficulties raising payments to a loan and have been paying token payments. They have supplied a compliant and executed CCA, have defaulted the account and there has been a soliciters letter claiming full payment in 7 days or else. I was told on the phone that this was just a formality before the account is moved to their collections dept.

Lloyds have been singularly unsympathetic and are still charging interest

every month. There is no dispute except a late payment fee charged to my current account with them but I have not made claim for this single charge. I have written to them but the continuing interest looks like an infinite loop and I have no way out.

Is there any way to get them to suspend interest charges?

 

I'm separating this from my thread which has been dominated by MBNA to avoid confusion.

[photoman]

You might find this thread interesting?

Don't know if similar practices occurring upon your own account, but it does provide info on how to acquire a proper breakdown of interest, and also some pointers regards if and how to get interest paused.

 

http://www.consumeractiongroup.co.uk/forum/general-debt-issues/11427-walton-rbos.html

[Slartibartfast]

Thanks photman, I have been following that thread. My own situation does not appear on the face of it to be that complex. I had a statement of account and the interest charges appear straightforward, just adding to a downward spiral.

 

That look s like a real camera in your avatar! 8 X 10 ?

[photoman]

I'm no expert on this, but I do believe there is a way to get further interest paused whilst you make efforts to repay. I think there is some legislation that requires that the loan should not exceed a certain period, and that if continuing interest makes the term too long, or unlikely the debt would ever be settled, then they have to pause it. Or something like that ? Perhaps PM someone like steven4064 who is good with interest, or ask around/ contact other mods and site helpers.

 

Yes, it was a real camera. It's actually a shot of a guy in Havana Cuba. The interior of the camera also doubles up as a mini darkroom, so after taking your picture, they process it there and then. Amazing resourcefullness. Made me feel embarrassed about the £5k camera I used to photograph him !

[steven4064]

Slartibartfast

 

I'm afraid I don't know about the legislation photoman refers to but I will ask around my colleagues.

 

Is it just this loan you are having problems with or is it part of a general problem involving other creditors?

 

If so, you should probably get in touch with CAB and try and sort out the whole thing (you could even do this with this loan, even if it's the only one). CAB will help you draw up an income and expenditure statement which you can use to justify minimum payments to your creditor(s) and will help in negotiating payments to each creditor. The OFT guidelines say that creditors who ignore CAB (or other agencies) in this respect are trading unfairly. Also, creditors will stop adding interest.

[Slartibartfast]

 

Is it just this loan you are having problems with or is it part of a general problem involving other creditors?

 

If so, you should probably get in touch with CAB

 

Thanks for looking.

 

I have other threads one of which is here which I appreciate moving to the MBNA forum if you could.

 

I sought advice through all of the usual channels before finding CAG. My local CAB offered advice that was more than flawed and was extremely misleading, I won't be going back. CCCS were a lot better but since I have no appreciable income they were unable to help. Token payments are all I can manage and that's a continuing saga of extra debt.

Might be a great deal better if I could give up the little work I can do and go for benefits or BR but can't do that without a fight

[steven4064]

It sounds like you need to get all your debts sorted at once. The other place you could try is National Debtline (0808 808 4000)

 

(I have moved the other thread to MBNA as requested)

[Slartibartfast]

It sounds like you need to get all your debts sorted at once. The other place you could try is National Debtline (0808 808 4000)

(I have moved the other thread to MBNA as requested)

 

Thanks for the move.

 

National Debtline were as helpful as CCCS. These were my next ports of call after CAB. I have a negative income/outgoings and no luxuries. There is no further help available to me that I do not have already and I've been staving off BR by reading avidly the many thousands of posts here. Although confidence can be gained here very quickly certain knowledge is not so easy especially since so much depends on interpretation and so few people have a good understanding of the legislation and processes.

 

I would love to get sorted at once, unfortunately ATM it looks like I'm in the proverbial for the long term.

[steven4064]

Do you have an up-to-date statement of income and expenditure? If not, there is an online one you can use on National Debtline's website.

[Slartibartfast]

Do you have an up-to-date statement of income and expenditure? If not, there is an online one you can use on National Debtline's website.

 

I sent an up-to-date income and expenditure breakdown to everyone last year and nothing has changed since except I get closer and closer to a judges decision. I'm way past CAB, CCCS or National Debtline help here.

 

If I could get the interest paused on the loan I might have a miniscule higher chance of getting out of this very deep hole. Optimism is becoming rarified though.

[sequenci]

Hello there, I've been asked to take a look in to this query.

 

Can I ask, are you in rented or mortgaged accomodation?

 

Have you ever considered applying via the courts for a Time Order on this loan? A Time Order could restructure the loan, also at the same time you can ask the court to consider altering the interest rate.

 

National Debtline England & Wales | Debt Advice | Factsheet 06 Time Orders

[sequenci]

In addition, I think you should consider asking Lloyds for a copy of their internal complaints procedure, they are duty bound to supply you one upon request. You should raise the issue that Lloyds should treat you in a sympathetic manner as they subscribe to The Banking Code. It is likely that they are also in breach of the OFT Debt Collection Guidance as they are trying to force you into paying an unrealistic sum. Off the top of my head I would imagine it's s2.6f of the guidance.

 

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

[Slartibartfast]

Very useful, just what I needed, thank you!

[sequenci]

Are you in mortaged or rented accomodation?

Can you check the terms & conditions of the agreement to see if they can charge interest post-judgment?

[photoman]

Slarti,

Looks like your in good hands now.

Sorry I couldn't be of more direct help myself, but perhaps just by posting I helped to bring your thread to the attention of those in the know.

All in the spirit of CAG, and the only price to pay, will be that perhaps you do the same for someone else one day.

I wish you all of the best of luck with this.

Sounds like your facing upto them and dealing with the issues now, which is an important first step.

Do not get disheartened or let them affect your life further than they already have.

They've had enough from you already.

regards

PM

[Slartibartfast]

Are you in mortaged or rented accomodation?

Can you check the terms & conditions of the agreement to see if they can charge interest post-judgment?

 

I'm in rented accomodation.

 

There's nothing in the Terms and Conditions that mentions interest charges during enforcement or post-judgement.

[Slartibartfast]

Slarti,

Looks like your in good hands now.

 

Thank you.

Quite a haven is this CAG. I would certainly be in a very different situation with it.

[sequenci]

I'm in rented accomodation.

 

There's nothing in the Terms and Conditions that mentions interest charges during enforcement or post-judgement.

 

well if this is the case, and in a worst-case scenario you could invite them to sue you as

 

a) it is likely the court will allow you to pay the judgment at instalments that are affordable

 

b) interest and charges would be frozen.

 

some people use the 'invite to sue' route as a bluff to try and get the creditors to agree reasonable payments and to freeze interest and charges.

[Slartibartfast]

some people use the 'invite to sue' route as a bluff to try and get the creditors to agree reasonable payments and to freeze interest and charges.

 

Thank you Sequenci. It may be that 'invite to sue' may be a practical solution for me here barring minor miracles.

[sequenci]

Also get on the complaints tip. Banking Code, FOS involvement. Usually works well with the bigger banks.

[Slartibartfast]

Will certainly do!

 

 

A year ago I was in abject despair. Tables have turned a fair bit now thanks to people here.

[odds]

I wrote to Lloyds last year explaining difficulties raising payments to a loan and have been paying token payments.

 

I was in exactly the same situation and it took 3 letters before they even replied saying that my token payments were not acceptable, and interest would still be charged. I just continued to pay my token payment as that is all I can afford at the moment, so make sure you don't miss paying this.

 

They have have defaulted the account and there has been a soliciters letter claiming full payment in 7 days or else. I was told on the phone that this was just a formality before the account is moved to their collections dept.

 

My god, you speak to these people ? I took one call off them just after I had problems, never again. The attitude of the caller was disgusting and she was only interested in getting money off me, insisting I do this that and the other there and then. Told them to put everything in writing in future !! Never answered thier calls since, but they keep trying.

Same scenario here again. You will probably get letters from BLS COLLECTIONS next offering you a massive saving if you settle the account within so many days, I got 4. The first one suggested I could SAVE 50% and this was followed by another suggesting I could save 15%

 

Lloyds have been singularly unsympathetic and are still charging interest every month. There is no dispute except a late payment fee charged to my current account with them but I have not made claim for this single charge. I have written to them but the continuing interest looks like an infinite loop and I have no way out.

Is there any way to get them to suspend interest charges?

 

I hope you have another bank account, when they charged my current account £25 late payment I wrote an official complaint letter. This was to show how they were making a bad situation even worse, and that this would be viewed as counter productive. I got the £25 refunded all interest that was added to the account refunded and they suddenly accepted my token payments for the next 3 months. I also have it in writing that once the account is passed to the Consumer Debt Recovery Dept all interest is frozen on accounts. They also put a default on my credit file.

Good luck with these empty heads, but keep at it they will eventually get them message.

[Slartibartfast]

Thanks odds.

I don't mind speaking to them if I choose the time and know what I'm talking about. They have had harrasment complaints and the phone rarely rings now.

I'll be getting the letters off for tommorows post. Looks like the answer is to stay on the offensive.

[sequenci]

Thanks odds.

I don't mind speaking to them if I choose the time and know what I'm talking about. They have had harrasment complaints and the phone rarely rings now.

I'll be getting the letters off for tommorows post. Looks like the answer is to stay on the offensive.

 

Keep it all in writing, just in case you need evidence/examples in the future