What are Lloyds up to?

[FSpencer]

They agreed on the phone to accept around 1% a month on my credit card for six months, but are still sending me arrears and default notices demanding the full amount. When I speak to them on the phone they confirm that this 1% arrangement stands, and that I can ignore the letters. They describe my arrangement as 'informal', which is why they haven't sent me written confirmation of it. I have all these telephone conversations recorded.

 

Also, they have now put defaults on my credit file. They tell me that before the 6 months are up my account will have been sent to a DCA, and that this is 'good', and that the DCA will help me work out a long term solution.

 

So, my questions are:

 

What are Lloyds playing at?

 

Is the default they put on my file legal given the 'informal' arrangement?

 

Is there anything I should/shouldn't do while waiting for the account to be sent to a DCA (who I'm hoping will be more flexible about accepting a full and final offer)?

[citizenB]

Sadly, yes. .if you are not paying at least the minimum amount requested on the statement then they willl record the status of your account.

 

However you say they have put a default marker on your credit file. Have they actually issued you with a statutory Default Notice ?

[unclebulgaria67]

If they are registering the defaults and passing to a DCA in 6 months, what is the point in paying the 1% ?

 

This sounds like Lloyds are just trying to keep the account ticking over, while they negotiate the sale of the account. I suspect that they have a conveyer belt type system and it will take the 6 months before the relevant batch of debts including yours is ready to be sold.

 

I have read from other posts that Lloyds don't like negotiating reduced F&F's, so you might hit a brickwall with that.

 

Suggest that you write to Lloyds setting out the position and that you view the way they are handling this as unfair. Threaten to take this to the FOS, so they can review the handling of the account. If you complain to the FOS, this might block them from selling the account on to a DCA.

[citizenB]

Are they still adding interest to the outstanding balance ?

 

Unclebulgaria. you raise a valid point. What is the point of paying anything if they are still continuing to add interest, will default you and still sell you on to a DCA.

 

The answer is .. very little point which is why so many people are challenging the agreements / default notices in order to be able to come to an acceptable arrangement for reduced payments or a full and final settlement.

[harrassed senior]

When did you take this card on as it may be worth a CCA request.

[F_DCAs]

I'd recommend a CCA request also.

[FSpencer]

Forgot to mention that they froze interest in return for the monthly payment.

 

I'll do a CCA request (got card about 8 years ago)

[Guest]

fspencer

 

re your op, be wary. they did similar to me. they (collections centre abroad!) told me was on a 'plan' and to ignore letters re arrears etc. next thing, dn arrives (non compliant ), formal demand, default registered, and then it gets passed to 'external' dca for collection.

they have said that i was incorrectly advised re 'plan', and that 'it' may be sold on! (uncleBulgaria67 - spot on!)

did you get a dn? is it compliant? also consider a sar.

Edited July 6, 2010 by Ford
typo

[FSpencer]

Thanks Ford, it does seem to be a collections centre in India! I'll have a look at the DN they sent me, not sure how to tell if it's compliant.

 

Is it so bad if they pass it on to a DCA? In my experience they are more easier to negotiate with regarding full and finals, or monthly plans. I don't really want the default on my credit file though.

 

I have recordings of all my phone calls with them, so can prove in court that they advised me to ignore these letters.

[unclebulgaria67]

Just had a thought. Could this be a [problem] ???? In your first post it mentions that Lloyds asked for 1% payment, on an informal basis, when they would send no written confirmation of this. This strikes me as a bit odd.

 

Have you phoned Lloyds Credit cards people in the UK to confirm the arrangement.

 

It might be worth checking this out, just to be on the safe side. I would be asking for written confirmation of the payment arrangement and that interest had been frozen. You might need this written information later on.

[FSpencer]

I'm pretty sure it's not a [problem], the telephone number I've been calling to get these assurances is the proper Lloyds number.

 

I've just checked my credit file, and see that they have marked my account as in arrears, but not applied a default yet. Considering the fact that my last default was 5 years ago (when I entered DMPs with my creditors), it would be a shame to get a new one now.

 

Is there any way I can stop Lloyds from applying a default before this goes to a DCA (at which point I hope to negotiate a full and final)? Or would it be better to try and renegotiate with Lloyds?

 

I really want to avoid a default on my file.

[unclebulgaria67]

You could try to negotiate with Lloyds. Why not phone them to find out which department you need to speak to regarding settlement of the account.

 

Lloyds will try to get full payment and will use the fact that you don't want the default. So be prepared for them to drag this out, in the belief you will find the money from somewhere to settle the account.

 

Ask Lloyds to confirm why they won't put the 1% repayment and no interest agreement in writing. Ask them to do this for your records.

[Guest]

Thanks Ford, it does seem to be a collections centre in India! I'll have a look at the DN they sent me, not sure how to tell if it's compliant. re dn compliance, see here for eg http://www.consumeractiongroup.co.uk/forum/show-post/post-2166205.html

 

Is it so bad if they pass it on to a DCA? In my experience they are more easier to negotiate with regarding full and finals, or monthly plans. I don't really want the default on my credit file though. imo, a default is usually registered (after a dn and their formal demand for the full balance) by the time it gets to a dca. although loyds usually pass it on to their 'internal' dca's before going 'external'.

 

I have recordings of all my phone calls with them, so can prove in court that they advised me to ignore these letters.

 

..

Edited July 1, 2010 by Ford
typo

[FSpencer]

Thanks Ford,

 

I decided last night that I'm going to bite the bullet and take the default now, no point in postponing the inevitable. The last letter I got from them was not a default notice, just a more strongly worded monthly bill (I'm 3 months in arrears now), with a government advice leaflet enclosed.

 

 

So I can get an idea of how fast/slow things will move, what was the timeline for your dealings with Lloyds (from first arrears to DCA)?

 

Cheera

[elrib]

HI

 

Looks like I got the same form lloyds as you did, also same info on the phone when I spoke to them.

 

I have sent them a letter of complaint and a cca request. also included in letter was a formal notice issued under Section 10 of the Data Protection Act 1980, asking them to stop processing of my data until this complaint has been dealt with.

Now not sure if it will work but may stop them selling or passing this on to a DCA,

 

e.

[Guest]

Thanks Ford,

 

I decided last night that I'm going to bite the bullet and take the default now, no point in postponing the inevitable. The last letter I got from them was not a default notice, just a more strongly worded monthly bill (I'm 3 months in arrears now), with a government advice leaflet enclosed.

 

 

So I can get an idea of how fast/slow things will move, what was the timeline for your dealings with Lloyds (from first arrears to DCA)?

 

Cheera

 

AFAIK, a def notice must be served before a default can be registered. and a default should be registered within 6 mths of the dn. (as you're 3 mths arrears, you may get a dn soon.)

but, if they do honour their telephone arrangement, then you may not get dn'd/defaulted. not sure about this though!)

 

in my case, AFAICR, it was around 6/7 mths before their first internal dca got involved. a default was registered shortly after this. their other dca then got involved, and then it went 'external'. (note though that a cca request and sar was done midway which may have affected things. so, your 'timeline' may differ!)

Edited July 6, 2010 by Ford
typo

[Stopthethieves]

Someone wrote that Lloyds stall over F&F.

 

I got a 60% reduction off them with not much problem...mind you it was 2 years after default.

 

Regards

[badpoppet]

Hi

 

I've experienced a similar thing with Lloyds in the last few days also.

 

I've been on a interest-frozen payment plan for almost 7 years (started in Dec 03!), paying off 7,000 pounds at 10 pounds per month. Everything had been running smoothly with them and I hadn't heard a peep from them until a few months ago. Unfortunately, I hadn't been paying much attention to my recent statements so I missed some vital new details which I only discovered yesterday when I received a letter from their Collections Centre: In February this year the statement started to show an "available to spend" amount (rather ridiculous considering my situation). In March the minimum payment had jumped to 131 pounds, including 75 pounds interest, and then in April 83 pounds interest etc. I now owe about 400 pounds in interest...

 

I called the LLoyds number last night and it was indeed a call centre in India. I could tell the employee was reading from a script and couldn't tailor her call to my questions which just made me angrier. She informed me that I had been taken off the payment plan in February and that I had been advised by letter in February (untrue) and that I now would have to put on an "informal" plan with the Collections Centre if I so wished.

 

Since then I've fished out all my recent statements and can confirm there is nothing from LLoyds about the payment plan except for a letter from them stating that i have "missed payments due under" my "credit card agreement."

 

I'm really angry about the situation as I've been managing my debts quite well under the circumstances (illness and low income, and dealing with such delightful DACs as Link and Equidebt) and now it seems as if I'm back to square 1. Also, I've spent MONTHS getting the Lloyds total down and then they just slap on 400 pounds of interest in one go which basically wipes out 40 months of payments!

 

BTW I live in Australia (hence the no "pounds" key on my keyboard). In case anyone is wondering, the reason I decided to pay off my UK debts is that I fully intended to return to the UK immediately (dual residency) but in the end I have been delayed by illness. I still intend to move back hence my continued interest in keeping the payment plans up. Grrr.

 

Cheers

Badpoppet

[Guest]

Just had a thought. Could this be a [problem] ???? i see what you mean! they seem to be in the habit of telling people that they are on some kind of 'informal' arrangement and to ignore arrears etc, yet they seem to proceed with arrears/default etc!?.....

 

..

[totiesquoties]

with the vixen robots so called now, do not trust anything they tell you, get everything in writing off them, ask for copy credit agreement, copy of subject access request history ten pounds usual fee, and one pound for credit agreement,

[jimbo45]

Hi there

Why on EARTH are you so worried about your credit file -- if you've got this far down the road where you need to see off DCA's then haven't you had ENOUGH credit --- Whilst I agree the total antics of DCA's and the whole debt collection industry is really TERRIBLE the fact is for better or worse you DID actually borrow the money.

 

Now I know (it's happened to me too) that because of circumstances totally beyond my control I've had various loans that I haven't been able to pay back at reasonable rates.

 

I KNOW also that the debt collection industry tries to excessively charge people at the point when they can last afford it so any dealings you have seeing off a DCA are fine -

 

but I really DO question whether you should be worrying about credit references etc -- if you've got yourself into this mess -- might not even been your fault you really shouldn't go through the whole kybosh again.

 

Just tear up any credit cards -- it's quite easy to live without them.

 

Cheers

jimbo

[Guest]

jimbo46

 

it seems that maybe you are missing the point here! people, who have come to some 'informal' 'arrangement' with loyds (and are then told by loyds to 'ignore' everything re arrears), are seemingly being misled by loyds!

Edited July 8, 2010 by Ford
typo

[MAGDA]

jimbo46

 

it seems that maybe you are missing the point here! people, who have come to some 'informal' 'arrangement' with loyds (and are then told by loyds to 'ignore' everything re arrears), are seemingly being misled by loyds!

 

yes, we certainly are being misled. I really don't know what is going on. I wrote a letter of complaint back in Feb as, without telling me, Lloyds cancelled my payment plan, starting charging interest again, and so-called cleared the arrears on the account, in order to give me a fresh start, only to start applying fresh arrears and issuing a default notice. They did all of this knowing that I wasn't in a position to make the full contractual payment.

 

They are now threatening court action via their solicitors SCM.

 

The letter of complaint I sent was ignored for 8 weeks, at which point, realising I was intending to involve the FOS, they responded. They stated that they would put a temporary payment plan in place again, and pass it to their collections people, MHA, I think. At that point, they said, the interest they had been charging, almost £900 would be refunded and the account would revert to zero interest again.

 

None of these things happened and they are, as stated above, now contacting me via their solicitors to demand payment of the full balance.

 

I think I will write to them again and put in a formal complaint with FOS. The trouble is, if you write to them, the correspondence pretty much seems to be ignored.

 

Magda

[Guest]

magda,

glad you posted. another eg of loyds' misleading conduct.

let us know how your complaint goes (not that it will amount to much! fos equals bankers!)

btw. magda, is your dn valid?

[MAGDA]

magda,

glad you posted. another eg of loyds' misleading conduct.

let us know how your complaint goes (not that it will amount to much! fos equals bankers!)

btw. magda, is your dn valid?

 

 

Hi Ford, many thanks for providing the Link to this thread. Lloyds make me really cross, because a lot of the people posting are actually trying to pay their debts off, but Lloyds are being extremely unfair.

 

I think the DN is probably ok, but will double check it to make sure, you never know, I might spot something!

 

I know what you mean about the FOS, these organisations are not really interested in helping ordinary people like us, or taking our side, but guess it's worth a try. Will let you know how it goes.

 

regards, Magda