Are we doing the right thing?

[smiler_38]

Short summary -

I have been trying to help stepson sort out his financal problem with Lloyds Bank. Basically , he got into financial difficulties through loss of job, went overdrawn... charges were applied to his account... etc etc . He ended up with a debit of £2300+ (£1800 of which are charges/fees). Tried since Feb 2009 to get Lloyds to reconsider. No budging by them. Applied to FOS - they agreed with that Lloyds, that the Bank had done everything to help my stepson!. After a miriad of letters (which all of mine were ignored - due to "NO record on system" giving me authority to discuss my stepson's matter even though he had sent three letters to them stating his Authority to me to discuss his account), letters from solicitors, and Credit Agencies. He finally recieved a Yellow Card from AIC (UK) Ltd. I spoke to them (with my stepson's verbal authority). Basically , he had three options - pay 50% reduced sum - matter closed, or 20% deposit on full amount then 48 monthly payments, or finally £99 for 24 monthly payments. None of these options very financially do-able by my stepson, however he was prepared to pay £65 over 36.

 

On the 28th on Jan , I will have to pay the first payment (which was demanded by card payment - not available to my stepson), then a Standing Order will be sent out by AIC for him to set up his own STO from his new bank account.

 

I have read a lot of horror stories about this firm (AIC (UK) Ltd, however, I found them fairly easy to talk to - with the exception that Mr McNally from AIC refused to put any of the discussion in writing.

 

My question is :-

 

Whilst we still hope that Lloyds will be made to refund some charges in future, are we doing the right thing in entering into an fixed term repayment agreement with AIC?

 

I have been told that the debt will remain the 'property' of Lloyds, so by that can I assume that AIC will not be sold the debt on the back of us agreeing a repayment?

 

There is a debt to be paid ( admittedly with excessive banking charges added on), and we can't put up with yet another year of stress and hassle.

The government is unwilling to do anything about this matter (I have a number of useless reply to my letter to the treasury, and shadow chancellor on banking charges).

 

PS: as someone who has been fortunate not to have had any money problems (or overdrafts) I cannot believe how totally obnoxious and unhelpful the bank, solicitors, credit agencies, government, and even the FOS have been.

[themadcap]

Hi Smiler,

I take it this is just a bank account not credit cards/loans etc (you can still claim back charges on these accounts).

If its just a bank account then I would request in writing that the debt will remain Lloyds, as these 50% offers dont usually come from the original creditor, if it all turns out legitimate then it needs to be repaid one way or another and if he can afford the £65 over 36 and they are agreeable to it I personally would accept that and hope a bank charges loophole comes up in the meantime.

This is just my personal view and is not intended to upset anybody

cheers

[PGH7447]

first do not give AIC any card details, secondly get everything they say in writing, thirdly do not talk on the phone to them unless you can record the conversation.

 

finally get in touch with the bank and make them an offer, not AIC

[smiler_38]

Thanks themadcap.

 

It is just a bank account. He just has to bite the bullet, and take the pain I think, until the banks are finally brought to account on the excessive charges issue. We can still fight on, even while he is paying back the debt.

[alex2258867]

Hi Smiler,

 

No matter what you agree, under no circumstances give these people your card details.

 

Insist on making the first payment and all subsequent payments by standing order.

 

There are too many horror stories of DCA's taking additional payments from accounts via card. And it is a nightmare trying to get anything back from the banks.

 

I strongly advise against giving any DCA your card details, once they have them, they are in control. Standing order is the only way to pay them...you are then in control.

 

Hope this helps

[themadcap]

I agree with alex dont give card details to them as most DCA's are extremely untrustworthy, if you need to phone them you could get their bank details and make the payment via online banking or you could arrange to set up the standing order yourself with online banking, as you are clearly making an attempt to clear the debt any attempt by them to put hurdles in your way should be reported as they have to work within OFT debt collection guidlines

[smiler_38]

I agree with alex dont give card details to them as most DCA's are extremely untrustworthy, if you need to phone them you could get their bank details and make the payment via online banking or you could arrange to set up the standing order yourself with online banking, as you are clearly making an attempt to clear the debt any attempt by them to put hurdles in your way should be reported as they have to work within OFT debt collection guidlines

 

 

Even if it's my Lloyds mastercard??

[PGH7447]

Any card, or any bank details, it is alledged that they take cash without your authority

[smiler_38]

well, as it is not my debt - if they take more than the agreed £64 one off first payment (as my stepson doesn't have any card payment facilities) , I shall bring down the wrath of TBN on their thieving heads!

 

But I'm sure that won't happen, as they have to be a reputable DCA in accordance with the banking code... and if they are not , then Lloyds will get the same "bring down the wrath of TBN on their thieving heads!" treatment.

[Bill Shidding]

Hi smiler, where do I start?

1) Can Lloyds prove the debt is enforceable? (Producing overdraft facility letters/DN/Final demand/arrears notices/statements ?)

2) If no, you should put the debt in dispute.

3) You could then offer a F&F, and pay the settlement on your sons behalf. This would legally extinguish the remainder. Your son could then make payments to you.

 

Always get the settlement in writing, and signed by the OC. You must pay the settlement by your own personal cheque.

 

I have read a lot of horror stories about this firm (AIC (UK) Ltd, however, I found them fairly easy to talk to - with the exception that Mr McNally from AIC refused to put any of the discussion in writing.

 

If you called me, and offered me money, I would be very easy to talk to too! These people are not in business to make customers happy, they are only interested in the money.

 

Bill

[PGH7447]

well, as it is not my debt - if they take more than the agreed £64 one off first payment (as my stepson doesn't have any card payment facilities) , I shall bring down the wrath of TBN on their thieving heads!

 

But I'm sure that won't happen, as they have to be a reputable DCA in accordance with the banking code... and if they are not , then Lloyds will get the same "bring down the wrath of TBN on their thieving heads!" treatment.

 

Wish I had your faith in these oiks, you have been warned so please dont come back on here with a sob story of how they took what ever they wanted from your accounts

[smiler_38]

Hi Bill.

1 - YES

2 - had been in dispute re the bank charges, but Lloyds don't recognise the bank charges debacle as legitimate definition of the account being in dispute ( and I suppose they are right - charges are legal charges until proved otherwise).

3 - That was an option earlier on, but that is not possible (or desirable) now.

 

If you called me, and offered me money, I would be very easy to talk to too!

 

So would I LOL

[Bill Shidding]

Ok smiler, but your son still has 3 options.

 

1) Ignore all demands, and wait for a claim form in the post. You could then argue (in court) that the charges are unlawful under *wait for templates*.

 

2) Make reasonable repayments to Lloyds directly (preferred).

 

3) Do as you describe with AIC. With the possibility/likelyhood that AIC will eventually skank you out, one way or another.

 

I wish you (and your son) the very best!

 

Bill

[smiler_38]

Ok smiler, but your son still has 3 options.

 

1) Ignore all demands, and wait for a claim form in the post. You could then argue (in court) that the charges are unlawful under *wait for templates*.

 

2) Make reasonable repayments to Lloyds directly (preferred).

 

3) Do as you describe with AIC. With the possibility/likelyhood that AIC will eventually skank you out, one way or another.

 

I wish you (and your son) the very best!

 

Bill

 

Looks like you were right....

 

Stepson got letter off AIC, headed PROPOSAL ACCEPTANCE .....

and then went on to describe a completely different arrangement!... of £65 for three months, then my stepson would have to contact AIC to "review the remaining balance".

 

Stepson has asked for written confirmation that the original £65 over 36 months was or was not the accepted proposal.

 

To cover us, I have asked the FOS to reopen my stepson's case against Lloyds, and also to look into this DCA's actions.

 

Can anyone confirm that the DCA's only action would be to hand the account back to Lloyds if no repayments were made under the DCA's terms?

[Bill Shidding]

Hi smiler,

 

Looks like you were right....

 

I don't take any pleasure in that. Unfortunately, this is what we should expect from lightfingered guttersnipes.

 

Remember that there are still 2 options left.

 

To cover us, I have asked the FOS to reopen my stepson's case against Lloyds, and also to look into this DCA's actions.

 

You may as well try to stop the tide.

 

If the collector has not been assigned the debt, then the debt will be passed back to Lloyds or, "farmed out" to another collector. In which case, the whole thing starts again, and continues until somebody gives in.

 

If you are positive that your stepson's debt is 100% enforceable, I suggest you consider *negotiating* with Lloyds directly.

 

*Stop interest, refund charges (or part-of), offer a lower starting repayment and make them work (negotiate) for more, using a higher repayment as leverage against stopping interest/charges and so on*

Remember that this is purely a business transaction, you are only ordered to make payments by a court.

 

Bill

Edited January 16, 2010 by Bill Shidding

[PGH7447]

I wont say we were right, but we were right:)