Lloyds Bank taking money

[ilovecats]

Lloyds have just deducted a £25.00 charge off me for not paying my loan with them even though I have written to say I cannot afford the payments and offered a pro rata amount (which I am waiting for a reponse on). This has now made me go overdrawn, are they allowed to do this?

[huggys boss]

I think they are allowed to do this.

 

My advice would be to open a new bank account with a bank that is not associated with Lloyds and have you money paid into the new bank account.

 

You could then set up a standing order to pay what you can afford into your Lloyds account.

[ilovecats]

Thanks Huggys

I have already opened a new account and cancelled my standing orders with Lloyds and left the bank with zero balance (now overdrawn due to the deduction they have made).

I guess my only option is to close the lloyds bank account that way they cannot take any money off me that I do not have.

My lloyds bank account is a seperate account from my loan one so I am surprised they could do this. We learn, first think monday I will settle the overdraft so I have 0,00 in my bank and close it.

Do you know if they can stop me closing it all?

thanks

[huggys boss]

I am not too sure if they can stop you closing it.

 

I am sure somebody else will advise you further.

[maroondevo52]

Hi,

 

They will not close the account without a '0' balance, you would have to pay off the amount overdrawn first.

[enamae]

You should be aware that even if your current account is not overdrawn, they may refuse to close it while you have still have payments outstanding on your loan.

 

 

 

enamae

[franko64]

I had the same problem with Lloyds TSB.....they refused to close account although it was not overdrawn...i complained to the Financial Ombudsman and the account was closed a week later..........I was in debt to the Lloyds TSB group for £35000 and have now got it down to £7000 and cannot wait to see the back of them..a very nasty organisation to deal with...good luck.

[ilovecats]

Just to let you know I did manage to close the account, I think because I only just sent the letters out offering pro-rata amounts and only missed 1 payment so far they didn't quite catch on so no more £25.00 charges taken directly off me (even though I'll know they'll just add them to the loan : ( )