Lloyds forcing me into liquidation becaused i asked for information on a second loan before I repaid it

[Henny Maltby]

Hi Thanks for taking the time to look at this I am hoping this is the correct posting place.

 

Ok to cut a long story short I went to lloyds bank back in 2010 I went to Lloyds TSB to discuss two problems - recently they had reduced my overdraft facility from 19k to 15k and were refusing to increase this this was causing me cash flow problems which were very temporary but were getting quite serious. I went to see my busines advisor asking if there was anyway we could restructure the borrowing until 6 months time when I was going to be coming into money so I could pay off the second loan. After that my business would see quite large profits coming in for the first time since having all the loans.

 

The bank said that they would find a way of helping me through but I had to write a business plan etc to send through to them. I submitted all the information that they asked for and was told a month later that they would not support me and wanted the money for a missed payment and was asking when I could pay off the second loan.

 

I was 7 months pregnant at the time so could not go and get a job to find that kind of money and told them that I would pay off the second loan as soon as the money came to me which I was saying would be a few more months (this was from the sale of my parents house). In the meantime Lloyds were charging me large fees to go over my overdraft agreement so any money that was coming in was going straight out in charges. I was sinking further and further into debt for the sake of only borrowing £1000 to keep my head above water.

 

Problems with loan

When I took out the loan in 2006 I had orignally asked to borrow 30K and we got 37K. We asked what this was for when it was received and they said it was for the insurance that we had to have in order to get the loan. This put the loan repayments out side of what we had calculated as it added another 20% onto the cost of the loan and in actual fact made this unaffordable to the point we had to take a payment holiday with our governement backed loan 50k to see us through. We have always just about managed to repay both loans up until this time but it was luck that we secured a large contract which we did not have at the time that the second loan was given to us or we would have sunk.

 

I had questioned in the meeting with the bank manager why this had been added and asked if it was PPI. I was told that PPI was not sold to businesses so I asked for all the paperwork in regards to this second loan. I also asked the bank to prove the affordability as I felt the bank had lent badly in this case and were only interested in the guarantee.

 

The Guarantee

The bank made us take out a 40K guarantee with them as this covered the mis selling of PPI. I would question as to whether this was legal. When I asked about this the banks response was to say that as we signed to it we agreed to it and they didn't know as to why they asked for 40K. I would argue that this was because they made us believe that we had to have the insurance and therefore we felt that we had no option if we were to get the money we had to do this but due to their mis-selling we have taken out guarantee we could not have got proper legal advice on as it covered their bad practice.

 

Filing of Complaints with FOS

I have filed complaints in all these areas with the FOS and Lloyds are now outside their time to respond with the full copies of the loan agreements, my guarantee of which I was never sent any of the paperwork, I have finally found out myself who the PPI was taken out with and have also found out that they added overdraft insurance without my knowledge as well.

 

I was also told by my account manager that I could request Subject Data Access request but I would be charged for this. I had the £10 taken from my account which caused me to go over my overdraft without ringing me as I had requested to pay for this personally. I asked for all the data they held on the business so I could see if any other mistakes had been made and if it would bring me more paperwork I was unaware of including charges they had placed unfairly on the account due to their mis-selling. A few months later when I still had not received this request I questioned them on it and they said that they did not hold any such information.

 

Forced to stop trading

The information I have received from Lloyds is not whole and they deliberatly did not send the overdraft insurance which they added which I got through from the insurance company as it was a whole set of three documents which ran conclusively and they only sent me the first two pages. Due to this lack of information and the timescale it has so far been nearly 9 months since this started I have had to stop trading due to not being seen as trading insolvent. This has cost me the major contract which gave me 90% of my income and in effect they have ruined my business and are now talking about using my guarantees to make a claim against me. I don't have any money and a new born baby and to top it all off my husbands job which is now our only form of income relies on him not having a bad credit rating so I cant just go bankcrupt. I have not given Lloyds the money 25K for the second loan as it is my only bargaining tool I have and there is no guarantee they will not use the second guarantee to claim on the first loan which will make me bankcrupt anyway so the money is still with my parents where they can't get their hand on it. Any advice would be greatly received as I have to go to the FOS this week with my case. I am more than happy to go to court against Lloyds as I think it is outragious they could treat a pregnant women with treats of going to the debt department when they knew full well there was nothing I could do to raise the money and then refusing when I told them to, and I also feel I have nothing to loose. If it was not for them I would still be trading and profitably by now. thanks for taking the time to read this.

 

Henny

Edited September 13, 2011 by Henny Maltby
formatted to make for easier reading :)

[Surfer01]

Can I suggest you edit and put the post into paragraphs as it is nearly impossible to read and digest?

[citizenB]

Have reformatted your post to include some paragraphs..

 

two things..

 

if you were mis sold PPI, for any reason then it is reclaimable. If this was a single premium policy then have a read of the link in my signature which will give you a lot of advice and answer all your questions about reclaiming.

 

The payment for the Subject Access Request, .. are you saying it was taken from your account without your putting in an official request for the SAR ? How do they know exactly what you are requiring by way of information ?

 

I think this needs to be questioned with the bank.

[Henny Maltby]

I have made the claim for PPI and I am still awaiting their response they apparently have 16 weeks in which to agree or disagree. Thanks for the link I will check this out. The Subject access request was as they kept sending me paperwork I could see that pages were missing and there were a lot of mistakes that had been made that is how I found out about PPI and the overdraft insurance they had taken out so I wanted full access of my records so I could look into my account to see if they had done anything else I was unaware of. I have received no information from them so far and they have now said they don't have to do this for business but they have still taken the money.

[Henny Maltby]

I have made the claim for PPI and I am still awaiting their response they apparently have 16 weeks in which to agree or disagree. Thanks for the link I will check this out. The Subject access request was as they kept sending me paperwork I could see that pages were missing and there were a lot of mistakes that had been made that is how I found out about PPI and the overdraft insurance they had taken out so I wanted full access of my records so I could look into my account to see if they had done anything else I was unaware of. I have received no information from them so far and they have now said they don't have to do this for business but they have still taken the money.

[citizenB]

They have 40 calendar days to comply with your SAR.. so from the date they received it.. start counting. If they dont comply with it in full then you can either take your complaint to the Information Commissioner or issue a Non compliance claim through the court