Lloyds charges led to business closing

[Tanner Bomfin]

Interested to read this thread.

 

I racked up huge charges on my business account with Lloyds and they contributed to me packing up in 2007. Basically I set up the business in 2000 as a sole trader but then my Dad wanted to naively "safeguard" me from a partner so insisted on having 1%. Initially I was based down in Devon and had a good rapor with my BM. I needed to move premises and took out a loan of £5k (plus PPI which I am sure I should not have been made to take out?) with a £2k overdraft facility. No long after this, my BM asked if I could start reducing the overdraft by £50/month which I agreed on. This seemed to work fine and I got it down to £1k when the BM moved to another part of the bank and I was given a new BM who was totally unreasonable. By this time I had moved to Oxfordshire and the business was not doing as well as it should have. I desperately wanted to move my account to a local branch but my BM kept refusing.

 

My new BM was not very pleasant and kept insisting on the overdraft being transferred into the loan. I refused and had some pretty nasty conversations with him, including one where he told me to eff off to another bank. Then 4 days before Christmas 2005, he removed my overdraft and I was left virtually penniless with animals to feed. To say I was stressed was an understatement. Things just got worse and worse. The charges were racking up and obviously making things far worse. Eventually having moved premises again, this time to Suffolk, I went to the cashpoint one day (April 2007) only to lose my card. When I went into the branch they told me my account had been closed. I admit it had looked pretty unhealthy for a while, but to close it with no notification! My father went to visit the BM in Devon who put on the charm and basically told him a pack of lies saying he had sent 27 letters to me. It was total rubbish. I never had a phone call - nothing. Nor had my father yet he was down as a partner and had had to sign for the loans/overdrafts etc.

The loan was transferred to another and my father is still paying it. I can't find the original paperwork and Lloyds claim they don't keep "old loans" I am sure it should be paid off by now.

Initially from 2001 I paid £129/month until 2005 when it had gone down to £91 and then he took over in 2007. I just can't believe there is much left to pay. I missed about 7 payments in all.

I don't know who to ask for advice. Who can help me sort the loan out? What do I do about the PPI? We did try complaining to the Financial Ombudsman but didn't pursue it. And can I do something about the hideous bank charges? These are probably well over £3,500 and I am still getting pursued by creditors who I would like to pay off.

Any advice would be appreciated.

[andrew1]

Welcome Tanner, can you just clarify something. You say you were a sole trader then say your father had 1% - Was this a Limited company with shares or what?

 

Firstly, my experience with Lloyds was not dissimilar to your own. Change of manager and all hell broke out. Cash flow stopped dead in its tracks by removal of O/D facility without notice and then told if I go a penny over, they'll bounce everything. I was not a happy bunny and as I was growing and supplying temps and needed the flexibility of an O/D facility to pay those temps weekly it created desperation when there was not a need to have done.

 

That was a long time ago, but one never forgets. He too had the O/D turned into a loan, with PPI as a condition as no-doubt yours was and mine was a Limited company since closed down completely, but I got it back.

 

I had a whole swathe of account charges and unless you are prepared for a long fight then you will have some difficulty getting any back, but I did write about the PPI and received not just one loan PPI which I thought I had, but two in fact, one I'd forgotten about, so if I were you I'd find out more or less what the account name and number was and just write to their PPI team telling them it was a condition and you were not wanting it, you were self employed or a director and it was forced upon you and I think you'll find you'll get it back with interest without too much trouble. Certainly try that before the Financial Ombudsman as it'll be much quicker.

 

Have you thought about issuing a Subject Access request under the Data Protection Act? You won't get much if it's a Ltd Company, but you will if you were s/employed and that should give you any records they hold on you and maybe you'll get the details that way.

 

I wish you luck.

[MARTIN3030]

Have started a new thread for those following / advising you on your issues.