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Can Lloyds do this please help!!


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Hi Please help my husband has an IVA set up due to business and personal debts of approx 100k he has been paying this through a insolvencey practioner for the last five months without a problem. He has a personal account with Lloyds TSB.

One of his creditors was Lloyds TSB card services who owed 2000UKP approx however they agreed to the IVA and have been getting their proportion of the monthly payment.

Recently however my husbands uncle died and his daughter who also has a lloyds account had to pay the funeral director however she has no cheque book. She was worried about drawing out the cash and was told she would have to pay a sum to do a bank transfer. My husband was with her at the time and said to help she could transfer the money to his account which LLoyds stated would be free and then my husband gave her a cheque for the amount transferred to pay the funeral director.

Today howver we had a letter from LLoyds to state the cheque has been returned due to refer to draw. Not understanding this my husband called the bank today and has been told that LLoyds card services has taken the money from his account and transferred it to his credit card account. The girl he spoke to said this wasn't her department and the department he needed to speak to was shut at weekends but she said the bank had every right to do this!!!

The funeral has now not been paid for and the money has gone and it wasn't even his money!

Can anyone help or give any advise on this I am in shock and still can not believe what they have done.

17th august 06-claimed back 725.00 from HSBC in full (personal account)

28th august -just added up over 19,000 in business charges with husbands HSBC account! ABOUT TO START PROCESS OF RECLAIMING MONIES.

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Hi, sorry I don't know enough to advise you on how to proceed, although I think this is very underhanded and a sickening example of a banks greed!!

 

Possibly copy your post to the "General" section of the "The Bank Action Group" board.

 

I am sure that someone will be able to advise what you can do......

"If you owe the bank 100 pounds, you're the one with the problem. But if you owe a million pounds, the bank's the one with the problem."

 

Lord John Maynard First Baron Keynes of Tilton.

 

"If you owe the bank $100, that's your problem; if you owe the bank $100 million, that's the bank's problem".

 

John Paul Getty

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Hi Please help my husband has an IVA set up due to business and personal debts of approx 100k he has been paying this through a insolvencey practioner for the last five months without a problem. He has a personal account with Lloyds TSB.

One of his creditors was Lloyds TSB card services who owed 2000UKP approx however they agreed to the IVA and have been getting their proportion of the monthly payment.

Recently however my husbands uncle died and his daughter who also has a lloyds account had to pay the funeral director however she has no cheque book. She was worried about drawing out the cash and was told she would have to pay a sum to do a bank transfer. My husband was with her at the time and said to help she could transfer the money to his account which LLoyds stated would be free and then my husband gave her a cheque for the amount transferred to pay the funeral director.

Today howver we had a letter from LLoyds to state the cheque has been returned due to refer to draw. Not understanding this my husband called the bank today and has been told that LLoyds card services has taken the money from his account and transferred it to his credit card account. The girl he spoke to said this wasn't her department and the department he needed to speak to was shut at weekends but she said the bank had every right to do this!!!

The funeral has now not been paid for and the money has gone and it wasn't even his money!

Can anyone help or give any advise on this I am in shock and still can not believe what they have done.

17th august 06-claimed back 725.00 from HSBC in full (personal account)

28th august -just added up over 19,000 in business charges with husbands HSBC account! ABOUT TO START PROCESS OF RECLAIMING MONIES.

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Hi, sorry I don't know enough to advise you on how to proceed, although I think this is very underhanded and a sickening example of a banks greed!!

 

Possibly copy your post to the "General" section of the "The Bank Action Group" board.

 

I am sure that someone will be able to advise what you can do......

 

Hi thanks for this I will do as you have suggested and hopefor the best. thanks for taking time to advise.:)

17th august 06-claimed back 725.00 from HSBC in full (personal account)

28th august -just added up over 19,000 in business charges with husbands HSBC account! ABOUT TO START PROCESS OF RECLAIMING MONIES.

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Hi Please help my husband has an IVA set up due to business and personal debts of approx 100k he has been paying this through a insolvencey practioner for the last five months without a problem. He has a personal account with Lloyds TSB.

One of his creditors was Lloyds TSB card services who owed 2000UKP approx however they agreed to the IVA and have been getting their proportion of the monthly payment.

Recently however my husbands uncle died and his daughter who also has a lloyds account had to pay the funeral director however she has no cheque book. She was worried about drawing out the cash and was told she would have to pay a sum to do a bank transfer. My husband was with her at the time and said to help she could transfer the money to his account which LLoyds stated would be free and then my husband gave her a cheque for the amount transferred to pay the funeral director.

Today howver we had a letter from LLoyds to state the cheque has been returned due to refer to draw. Not understanding this my husband called the bank today and has been told that LLoyds card services has taken the money from his account and transferred it to his credit card account. The girl he spoke to said this wasn't her department and the department he needed to speak to was shut at weekends but she said the bank had every right to do this!!!

The funeral has now not been paid for and the money has gone and it wasn't even his money!

Can anyone help or give any advise on this I am in shock and still can not believe what they have done.

17th august 06-claimed back 725.00 from HSBC in full (personal account)

28th august -just added up over 19,000 in business charges with husbands HSBC account! ABOUT TO START PROCESS OF RECLAIMING MONIES.

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This is crazy and cannot believe how banks can keep doing this. Whether you owe them money or not they should have to follow proceedures to claim money from you just like you have to do with them or anyone else. Why does the law say they can do this? please can someone post the actual stance on this in what part of law says that they can do this offsetting. I keep seeing it everywhere i go and just cause there is money in the account shouldnt allow them to just pinch it.

 

If the money was with another bank they wouldnt be able to go to that bank and say this person owes me soo much so i am just coming to get it. The bank would say sorry you better show me that the owner of the account has authorised this. This should still be the same even if you have two accounts with the same bank. They are two seperate accounts as you sign two seperate contracts and therefore should surely be monitored independantly.

If you find this info useful please click on the scales in the bottom left corner of the thread :wink:

 

Vodafone To Remove Default Notices thread

Paid In Full HSBC Was Claiming £3851.42 But Instead of Paying Me Decided to pay my £4900 Loan OffDG Solictors. Need Help

Concluded Lloyds TSB 27/05/2006 Action Against LloydsTSB

Concluded Lloyds TSB for Girlfriend. 27/05/2006

Paid In Full Capital One £160 Settled

Paid In Full Capital One Sent 15/05/06 for £1372 for Girlfriend

Paid In Full Cetelem £130 Settled

Paid In Full The AA £400 Settled

Paid In Full First National £160 Settled

PDA LloydsTsb Credit Card Hand Delivered 26/04/06 £180

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I have just been through LloydsTsb terms and conditions and there is no mention there regarding Offset or Offsetting of any sort and if this is the case and it is not in a contract that you have with them then they cannot do it no?

 

I found this searching the internet. Can someone breakdown the meaning of what it says?

 

Offset Against Other Funds Banking institutions are allowed to set off against deposit accounts any charges owed to the bank where the bank has provided adequate notice of this right to the customer. The customer should also be provided with a reason for the offset when it occurs. Set-offs are not permitted for accounts receiving direct deposits of social security funds. In addition, banks are prevented from offsetting funds from a line of credit account unless the customer specifically authorizes this activity.

If you find this info useful please click on the scales in the bottom left corner of the thread :wink:

 

Vodafone To Remove Default Notices thread

Paid In Full HSBC Was Claiming £3851.42 But Instead of Paying Me Decided to pay my £4900 Loan OffDG Solictors. Need Help

Concluded Lloyds TSB 27/05/2006 Action Against LloydsTSB

Concluded Lloyds TSB for Girlfriend. 27/05/2006

Paid In Full Capital One £160 Settled

Paid In Full Capital One Sent 15/05/06 for £1372 for Girlfriend

Paid In Full Cetelem £130 Settled

Paid In Full The AA £400 Settled

Paid In Full First National £160 Settled

PDA LloydsTsb Credit Card Hand Delivered 26/04/06 £180

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I do know that Lloyds can take money from a current account to pay off outstanding amounts on a credit card. They've done it to me many times, usually at the most inconveient times too. However, the fact you have set up an IVA and payments would have been agreed must surely stop them doing this? I'm no expert but this does all sound very underhand.

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I am sorry to hear of your predicament and I imagine your embarassment in front of

your niece.

 

First thing is to get on to Lloyds and inform them that the money was not yours

for them to take. £1000 in , £1000 out, was a facilty to help your niece at a

bad time for her. [i am not going to make a comment on the advisibility of your

husband making the offer in view of the situation with the bank].

 

On top of that, you have an arrangement to repay the debt, so the bank has no

right to take that money. If they had any sense of shame, they would refund

the money straight away.

 

As they don't have any sense at all, they might not play ball. Then speak to your

IVA and ask them what their take is on the position.

IF Lloyds still do not refund the money, Citizens Advice should point you in the right direction. Or if either you or your husband has AA or RAC membership, they have

free legal advice departments.

It shouldn' t get to Court since Lloyds have no entitlement to that money, but

they may push you down the road a fair way.

Lloyds do have a compliance unit which monitors bank action. If you can get in touch with them and explain the circumstances, it might save time.

 

Please let us know how it is going.

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What a mess !

 

Unfortunately, all the banks see is cash....... you owe...we take.

 

It is easy to say in hindsight that it would have been better to have contacted the bank, beforehand to explain what was happening, and to get their OK.

 

The only suggestion that I can make is that you contact the bank as soon as possible and explain what has happened... that you were doing someone a favour to facilitate the payment of funeral expenses as she did not have a bank account. Also that the money was not and is not yours and was merely in transit.

 

Emphasise the distress that this has caused and ask that they please return the money so that it can be paid to the funeral directors.

You may required copies of invoices/bills as proof.

 

I sincerely hope that you are able to resolve this quickly and I wish you the best of luck.

 

Please let us know how you get on.

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Hello dolfos.

 

Proof, if it were needed, that the bank’s only consideration is the maximising of profit. They care not a jot for us or our problems.

 

As lookinforinfo says, we feel for your husband in his excruciating situation.

 

With the benefit of hindsight it would have been better to have told the bank in advance and sought their agreement to the transfer (but we’re all geniuses with hindsight, aren’t we?).

 

I think that your husband has a duty to tell his IP at the first opportunity. There is a risk that the IP will criticise him, whilst understanding his motives. But he might well be able to bring some influence to bear on the bank due to the existence of the IVA. There may well be special rules pertaining to the IVA which the bank are expected to work to and which the IP, from his authoritative position, could bring to bear on the bank.

 

Take lookinforinfo’s advice and seek free professional assistance, it can only add to your knowledge and lead you to the right course of action.

 

If all else fails you might consider publicity. This is exactly the sort of story that the media like to get their teeth into. Banks in general and LTSB in particular have had a bad press lately and won’t want any more ‘manure sprayed on their walls’. It’s not an easy option because of the personal and social implications, but it might do the trick.

 

We’ll all be rooting for you.

 

Elsinore

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I can't see how they can off set when my husband and them agreed through the terms of the IVA. As far as I know they actually voted for the IVA. We have had no notice of them doing this and like I said the money deposited isn't ours.

Thanks for advice, Still trying to digest what they have done do know what we are gonna tell the family if they find!!!

I have sent the bank a letter in the last weeks regardingrefunding their bank charges do you think this is there way of retaliation?

Surely by doing this they are going against the agreement between them and the other creditors by taking this money. Wages have previously been going into the account and they haven't touched it I just can't think of any other reason they could have done it apparently they said something about due to the account being overdrawn. if this was the case it would only have been due to bank charges they have applied. They are also now charging for this cheque which they returned(payment for funeral) due to them taking the available funds! Everytime I think aboout it I get more and more angry!

17th august 06-claimed back 725.00 from HSBC in full (personal account)

28th august -just added up over 19,000 in business charges with husbands HSBC account! ABOUT TO START PROCESS OF RECLAIMING MONIES.

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Thankyou all so much for you advice and support:) . He will be speaking to the IP first thing Monday I will not be letting them get away with it. I thinking of ways todraw this to light as we have penalised by the banks this last year something cronnick. I didn't mention We have also this last couple of weeks started to try and get refunded bank charges from Lloyds TSB and I think this is retalliation. They now want to charge for the cheque returned for funeral costs due to them taking the money. I can't believe this is possible.

My husband believe me has had me ranting at him telling him how he should have let her deal with her own problem her own way but he is just too generous and just wanted to help her out.

I never in a million years thought they would stoop this low. Previously wages have been paid into this account and they haven't touched it that's what makes me think this is a retalliation for the refunding of bank charges request.

I will go the press if I need to I and my family have fought tooth and nail to avoidmy husband going banckrupt and sometimes i wonder why! We felt guilty and although knew we couldn't pay back all the money thought the IVA showed we were atleast genuine in wanting to do what we could. Fool on us!!! We have had to pay for the IVA and have also been paying a monthly contribution i don't want us to give up now but it is so tiring fighting all the time and really puts a strain on rleationships! how can they keep doing this to people. I am really pleased you guys are pro actively trying to do something.

Thanks for all advice :)

17th august 06-claimed back 725.00 from HSBC in full (personal account)

28th august -just added up over 19,000 in business charges with husbands HSBC account! ABOUT TO START PROCESS OF RECLAIMING MONIES.

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I am sure that if an agreement has been reached regarding paying a monthly ammount to them under an IVA that they shouldnt be able to touch any more of your money, but as i say i am sure that someone more qualified would be able to clear this up. What i suggest is monday morning ring the company who you arranged the IVA with and ask them can they take extra money just like this.

If you find this info useful please click on the scales in the bottom left corner of the thread :wink:

 

Vodafone To Remove Default Notices thread

Paid In Full HSBC Was Claiming £3851.42 But Instead of Paying Me Decided to pay my £4900 Loan OffDG Solictors. Need Help

Concluded Lloyds TSB 27/05/2006 Action Against LloydsTSB

Concluded Lloyds TSB for Girlfriend. 27/05/2006

Paid In Full Capital One £160 Settled

Paid In Full Capital One Sent 15/05/06 for £1372 for Girlfriend

Paid In Full Cetelem £130 Settled

Paid In Full The AA £400 Settled

Paid In Full First National £160 Settled

PDA LloydsTsb Credit Card Hand Delivered 26/04/06 £180

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Dolfos,

 

If there is a current agreement in place with creditors to pay a set amount to them each month, then no they should not be able to debit the account without authority. Although this has been said already, your best bet is to contact the company that the IVA and get them onto Lloyds. It would seem for the most part, Lloyds are a law unto them selves. Generally though, you would need to read the terms of the IVA agreement to see if they are able to deduct money as they wish.

DJ Tazzz

The information I provide in replies on this site are drawn from this site and a few other external sources. I acknowledge all parties the information maybe drawn from and offer my advice and assistance freely without guarantee and risk of liability.

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Three threads merged - please do not duplicate posts

Opinions given herein are made informally by myself as a lay-person in good faith based on personal experience. For legal advice you must always consult a registered and insured lawyer.

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Hi Sorry bout three thread thing I was really desperate to get help. Thanks for all response.

Quick update, today my husband has spoken to LLoyds in person and got know where they didn't want to know a thing and couldn't give a toss!

He then went to his IVA insolvencey practioner who was livid!

Apparently Lloyds are NOT allowed to do this as like previously thought by you guys they have agreed to the terms of the IVA and thus can not just help themselves to any money. In order for them to have a right to do this it would not be their decision they would have to first contact our IP (insolvencey practioner) and it would be down to him to resolve the issue. Also he stated being charged bank charges causing my husband to be withdrawn by 10UKP!!! is not a valid cause to default the IVA. The IP stated Lloyds were acting unlawfully and it helps he is also a solicitor so is now about to kick some A*** at Lloyds to get the funeral money back. Apparently our IP said Lloyds do this to many people who do NOT fight to get it back because they are scared to take on the big corporate. Lloyds know they are in the wrong hence why they only verbally told my husband they are in the right (no correspondance referring to this incident has come from them). The IP believes they will say they have made a mistake when he gets to them, think how many people they do this too and how many don't fight back. I am now going after all the bank charges they put on my husbands account for the last six years. Even though this money may very well have to go into the IVA pot I'd rather all creditors got a share and greedy guts Lloyds didn't get to keep it all! Will keep updating as I go. Also Lloyds account has now been closed.

thanks again for advice.

17th august 06-claimed back 725.00 from HSBC in full (personal account)

28th august -just added up over 19,000 in business charges with husbands HSBC account! ABOUT TO START PROCESS OF RECLAIMING MONIES.

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Hi,

just an update IP contacted us to day to say Lloyds had been in touch with him and said it was a mistake and the money would be back in 7 days. If anyone has this same issue please fight them they can't get away with doing this to people. I am awaiting the charges information from them now to go after the six years of bank charges but first battle won. Thanksfor all support will keep updated on how claiming for bank charges now goes!:)

http://www.consumeractiongroup.co.uk/forum/hsbc-bank/26925-business-account-over-19-a.html

PS monies for funeral costs all returned and paid direct to funeral director no apologises nothing from Lloyds!

Thanks again for all great support!

17th august 06-claimed back 725.00 from HSBC in full (personal account)

28th august -just added up over 19,000 in business charges with husbands HSBC account! ABOUT TO START PROCESS OF RECLAIMING MONIES.

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It is entirely up to you, but personally I would not accept 7 days. They took the money promptly so surely they can return it promptly. If you agree, I suggest your IP contacts Lloyds TSB 'Compliance' department (sorry I don't have direct contact details) to have it paid back into your account within hours. This has presumably caused you major embarrassment with your family at a difficult time and Lloyds TSB should recognise this fact with a sincere apology / goodwill gesture / etc.

Regards,

Bean

Lloyds TSB - 27/11/06 - £6377 paidrest with FOS

 

SETTLED

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Opinions / advice of Bean are independent, informal, without prejudice, without liability, not CAG endorsed. If in doubt, ask a qualified professional.

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I absolutely agree with Bean, dolfos. LTSB are earning(?) interest on your money while they have it and have been doing so since they took it. It's disgraceful of them to take seven days. You should perhaps be disappointed with your IP that he/she did not protest when LTSB suggested it. Good result though and we're pleased for you:)

 

Elsinore

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One thing, it may be worth going to the press with this, the sun as recently as last wednesday i think, had a full page aritcle on bank charges, and they have had a lot of publiclity lately,

 

i think what lloyds have done to your husband is disgraceful, espically at that time,

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Dolphos, that is great news. I'm so glad that the matter is being resolved.:cool:

If this has been useful to you, please click on the scales at bottom left of post. Thanks.

 

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Hi,

Thanks for all support. The seven day issue has annoyed me too and our IP has said he has told Lloyds that the money is to be transferred directly to the funeral directors account tomorrow at the latest now to resolve issue finally. Fingers crossed all over tomorrow. Thanks again for support.:)

17th august 06-claimed back 725.00 from HSBC in full (personal account)

28th august -just added up over 19,000 in business charges with husbands HSBC account! ABOUT TO START PROCESS OF RECLAIMING MONIES.

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