@asklloydsbank Lloyds TSB provided me with large unplanned overdraft which i can't pay back

[jaylee768]

Hi everyone,

 

I'm currently having problems with Lloyds TSB. I've been with them for a few years and have never had any problems. I got myself into trouble with payday loans and when the due date arrived i had no funds in my account because i switched to a different bank and got my wages paid into that. I randomly checked my Lloyds TSB account a few weeks back and it's now -£440 because they agreed to provide me with an unplanned overdraft. Which is stupid because they wouldn't even offer me a £50 overdraft because my credit history is poor.

 

I've now received a few letters stating they have agreed the unplanned overdrafts and i called them to explain my current situation and asked if they can do anything to help, so they stopped charging me for the unplanned overdraft and froze charges and provided me with a "Control account" which is free for 6 months.

 

I haven't called them since because i don't know what to do, i get paid weekly so i can easily make small payments on a weekly basis to get back to a positive balance.

 

I've now recently got a letter stating i should pay the negative balance straight into my local branch by 16th January, but i just don't have the money to do that. Also in the letter they say i've breached their agreement and if i don't pay the amount by the due date they will register info on credit agencies and referr to their solicitors and take me to court.

 

I just wondered if anyone had any experience with this and if the bank would be willing to offer some kind of repayment plan? I'm guessing being a loyal customer for a good 5 years isn't good enough for them.

 

Thanks in advance for any help.

[slick132]

Hi Jaylee,

 

Re the "unplanned overdraft", is this something you requested and they agreed to. Or did they decide to make it available to you without your consent.

 

How has the balance run up to £440. Is it all, or mainly, default charges and interest.

 

When did they agree to freeze charges and interest on the o/d.

 

Have you been making any payments to reduce the balance.

 

[jaylee768]

Hi Jaylee,

 

Re the "unplanned overdraft", is this something you requested and they agreed to. Or did they decide to make it available to you without your consent.

 

How has the balance run up to £440. Is it all, or mainly, default charges and interest.

 

When did they agree to freeze charges and interest on the o/d.

 

Have you been making any payments to reduce the balance.

 

 

Hi,

 

I didn't request an unplanned overdraft, i've just received letters stating the funds wern't available to cover the payments of the payday loans so they have agreed to cover the payments with an unplanned overdraft and i'll be charged a daily fee of £10.00 for each day i'm still overdrawn.

 

It actually say's "You asked us to make a number of payments for you on the 15th November 2011. Unofrtunately there was not enough money in your account to cover all of them. We have provided you with an Unplanned Overdraft to cover the payments we made."

 

They haven't actually charged me anything as of yet, i received one letter first saying i am £233.05 overdrawn which i presume was one of the payday loans, then another letter stating i am £440 overdrawn which i'm guessing covered the other payday loan. I'm guessing the payday loan companies setup direct debits or they tried to charge my card multiple times and obviously succeeded in putting me in even more trouble.

 

I contacted them to say these payments shouldn't have even gone out as i couldn't afford to pay them, if i remember correctly one weeks wages went towards it to narrow it down to £440, i would have to check on my online banking.

 

I had a letter from Lloyds on the 22nd of November 2011 stating the "Control" feature has been setup so i'm presuming i contacted them a couple of days before that to say i couldn't afford to get myself out of that situation and had to go through all my expenses with a lady on the phone.

 

I haven't made any payments into my account, i've just had my wages paid into another bank account until i could afford to repay the Unplanned Overdraft.

 

Thanks for your response really appreciate it.

 

Jay

[dx100uk]

have the pdl's taken money they did not advise you of first in writing that they were going to take it

 

dx

[BankFodder]

We have to see if the bank has acted unfairly here.

 

They would argue that you deliberately diverted your funds away to another account so that there were no funds in the Lloyds account to pay the PDLs. I have to say that I don't understand why you didn't cancel the DD's and that would have avoided the problems with the bank and created them for the PDLs instead.

 

How long ago did you open the other account and how long ago did your regular wage payment stop going into the Lloyds account?

 

How long ago did Lloyds refuse to give you an ordinary overdraft facility and what were the circumstances?

 

If Lloyds had bounced all of your PDL payments, what were you going to do then about sorting out the mess with the PDLs?

 

I see Lloyds refusal to give you an authorised OD and then permitting you to go overlimit as being extremely unfair. On the other hand, if they refused the OD when you opened the account but then saw you as a better risk as the account was well conducted over a number of years, then their approval of the PDL payments seems to be more reasonable.

[slick132]

In addition to giving answers to the Q's posed above, can you confirm if the payment mandates for the PDL's are still active.

 

If they are, I assume the bank may still be asked by the PDL's to make further payments from your a/c.

 

You should therefore consider stopping all PDL payment mandates to avoid an escalation of the problems with your main bank.