Lloyds continuing to add massive overdraft charges while in a DMP

[benregis]

Hello,

I've been in a DMP with CCCS for just over a year, they reckon it's going to take 14 years to clear the debt, which is part credit cards, part bank loan, and part overdraft. The LloydsTSB overdraft is actually the smallest part of the debt, and stood at around £1200, a year ago. I've been paying them via CCCS about £5 a month. However they've continued to add on massive overdraft charges and interest - currently standing at nearly £28 a month. Clearly at this rate the debt to them is never going to be paid off. Is it really legal to charge this amount of money every month? and is there anything I can do about it?

[Night Owl]

Hi benregis, and big welcome to CAG.

 

I'm in a similar position to you. Lloyds, don't you just hate them!!

 

Paying regular payments to Lloyds through Payplan. All overdraft interest charges initially stopped, then Lloyds recomenced them.

Wrote to them telling them that we had commited to reducing our debt with them with payments according to our I&E and that they were increasing it again.

 

Initially they refunded the amount, but then restarted their game again charging overdraft interest all over again.

 

Wrote to them again as above, this time the paper trail came to an end with their final response.

So I sent the lot to the FOS to sort out! Awaiting their response.

 

Keep everything they send you.

Never, ever phone them, even if they say phone this number to dicuss options.

Write polite letters stating that you are making commited efforts at reducing your debt. of which they are increasing.

Await for their final response letter then complain to the FOS.

http://www.financial-ombudsman.org.uk/consumer/complaints.htm

 

Is the account active with DD's or SO's going out and money being paid in?

Transfer your account to one not linked with the original bank so that the only payments going in are your CCCS payments.

Keep track of the amount of charges they slap on.

 

Read Sequenci's Debt Diaries...............they are brilliant.

http://www.consumeractiongroup.co.uk/forum/entry.php?256-Sequenci-s-Debt-Diaries-Blog-Home

 

Good luck x

Edited January 20, 2011 by Night Owl

[Tingy]

It is clearly totally unacceptable for you to be paying them each month for the privilege of having your debt increaseed by their charges. Have you actually written to them explaining the situation and asking if they will freeze all interest and charges?

[benregis]

Thanks for your advice. The account is not being used any more, I transferred elsewhere just before I entered the DMP. They know I'm in a DMP, but have never made any attempt to reduce charges in spite of being asked, meanwhile CCCS have said that I should phone Lloyds about this, but like you nightowl, I was reluctant to do this. I'll write to them again and let you know how I get on.

[Tingy]

I would never write to them. There must be letters in the library re freezing interest and charges. I'd be inclined to send one of those and possibly (not often popular on here) a copy of your IE sheet IF you think it would strengthen your case.

 

I'd probably add something at the end asking how they see the debt ever being settled if they are unable to help while you're doing everything you can to repay it.

[benregis]

Thanks Tingy for your advice - I did intend to do what you suggested re following a template letter.

[Tingy]

I can't find one in the library - sure there must be one, but all it basically needs to say is along the following lines:

 

Dear Sir,

 

Your Ref:

 

I am writing with regards to the above account. As you know I have been making token payments of £x per month for the past x months. However I am alarmed and distressed to see that the balance has not reduced, despite my best efforts, but has increased to £xxxxxxxxx.

 

There seems little point in my continuing to make payments when the debt is continuing to increase. I would be grateful therefore if you would consider freezing all interest and charges on the above account so that any payments I do make at least go towards reducing the outstanding balance.

 

I hope you will feel able to concur with this request, at least then I will be able to look forward with a slightly more positive view in the knowledge that my debt is diminishing rather than increasing.

 

I look forward to a postive response,

 

Yours faithfully,

[Night Owl]

Thanks for your advice. The account is not being used any more, I transferred elsewhere just before I entered the DMP. They know I'm in a DMP, but have never made any attempt to reduce charges in spite of being asked, meanwhile CCCS have said that I should phone Lloyds about this, but like you nightowl, I was reluctant to do this. I'll write to them again and let you know how I get on.

 

Over a year making regular payments through a DMP and they have not agreed to stop charging is appalling. It makes for an unfair relationship when you are making every effort to reduce your debt with them and they increase it.

Send off Tingy's great letter by recorded delivery, keep proof of the letter tennis!, until they send you their final response or agree to stop charging. Which ever is the first to arrive.

 

When the reach their final response, saying no can do, copy the letter tennis and send to the FOS to sort out.

Lets hope they see sense and refund a years charges and stop charging...................but then we are talking about Lloyds here and they play a whole different ball game to the rest!

 

Best of luck and keep us updated x

[Bazooka Boo]

If they refuse to stop all interest and charges, then pull them from your DMP (which I hope is free?) OR pay no more than £1 a month to them, make a formal complaint to them using their complaints procedure, and claim ALL of their charges back to offset the amount owed. Otherwise, pay them nothing, walk away, and invite them to take you to court where the DJ will have a field day.

Make a complaint to your local MP also, get him to raise the issue of this corrupt rotten to the core financial industry, which we OWN 43% of, and that they are happy to pay themselves fat cat bonuses, but continue to bite the hand that fed them!

 

CEO Lloyds TSB;[email protected]

 

MP;http://www.writetothem.com/

 

http://www.lloydstsb.com/contact_us/complaints_procedure.asp

[Tingy]

BB is right there. If they refuse stop paying other a token £1.00 per month as a goodwill gesture. Follow BB's advice in terms of complaints, but make sure your letter to the CEO is good. This is one you really cannot afford to get wrong as it is your one major chance to get a result that will suit you rather than them. Probably a good idea to post it up here first or run it past someone you trust.

[benregis]

Thanks all of you for your advice. Am going to post off Tingy's letter (recorded delivery - nightowl, thankyou), and will let you know what happens next. And, yes, I will follow Bazooka's advice if that doesn't get me anyway. Many thanks again all of you - watch this space....

[victoria_siempre]

Hi ben

 

I agree with BB and Tingy but take it slowly.

 

I've seen several kosher DMPs where one creditor reneges on the plan that everyone else has accepted.

 

love

 

vic

[alex188]

Can anyone confirm the latest on their experience? I have been writing to Lloyds TSB since the first week of January 2011 requesting that they freeze my accounts and stop charges. I have sent them a copy of my Budget report and have 2 informal agreements on a LTSB credit card and LTSB Loan. Monies have been going into the account (which I have now stopped) which I think may be causing the account not to go on hold. Charges are obviously coming out each month, which at the moment I'm paying because I don't want to go over the agreed limits, but is there a way I can stop this? Thanks,

[Bazooka Boo]

Have you got your own thread on this Alex? It will go missed here.

[Night Owl]

Hi alex188,

 

it may help to start your own thread on this...............so that it gets the help you need.

 

Read sequenci's blog here

 

Have you sent everythng to Lloyds by recorded delivery so that you have proof of posting?

Do you have a parachut account or is this your main account?

 

The letter tennis has to continue until

1. you get a good outcome and Lloyds do what is asked of them...............unlikely

2. you get their final response letter.................then it's off to the FOS.

 

Good luck.

[alex188]

Thanks for this. I've written to them this morning to confirm that as of the 18th March 2011 I have given them 8 weeks to rectify this situation (and not continue to fob me off in an attempt to continue taking charges) and if this is not settled to my satisfaction I am going to raise this formally with FOS and reduce the available funds to what I can physically afford. Any additional charges or penalties will be disputed and I will attempt to have them refunded via the small claims court. We'll see, eh?!

[Tingy]

Forgive me asking, but why 28th March?

[alex188]

18th March is 8 weeks + 1 days since I raised this with them and the FOS advised I must give LTSB 8 weeks to try and rectify before they get involved.

[Tingy]

Thank you - sorry, should have read rest of thread!

[sequenci]

Excellent advice on this thread. It gets the Sequenci stamp of approval. (Not that it counts for much!)

[Tingy]

Mr Sequenci sir, please can I have a sticker?

[sequenci]

Mr Sequenci sir, please can I have a sticker?

 

=^..^=

[Tingy]

:whoo:

[Night Owl]

Excellent advice on this thread. It gets the Sequenci stamp of approval. (Not that it counts for much!)

 

I for one have learnt alot from the great advce here on CAG..................and your BLOGs!

[sequenci]

and your BLOGs!

 

Thanks! They've been a bit on the quiet side recently (busy time of year for me!) but there are plenty of new ones coming real soon!