I want to dispute unarranged overdraft with Lloyds

[wigan89]

Hi everyone,

 

My Lloyds TSB account was in perfect standing order 8 months ago

until i couldn't pay for a bill that was debited from my account (was a payday loan of £200+).

 

I have no overdraft with Lloyds and i tried to get one with them several times before but kept getting declined,

so what gives them the god given right to provide me with an unarranged overdraft to cover the payment, then charge me £10 a day for it?

 

My Lloyds TSB account was sitting at £0.00 with no overdraft facility,

now 8 months down the line i'm -£970.00 because of them providing me with these unplanned overdrafts and all the charges included.

 

I've tried to arrange 3 different repayment plans with them but i failed all 3 times,

i'm now in a 4th one and they said it will be the last, i'm not going to be able to stick to this one either.

 

Does anyone know of a good letter to send them to let them know

i'll be disputing the account so they should keep the account on hold without any interest until the dispute is resolved?

 

This debt has forced me to seek credit elsewhere to pay for other bills and has got me in a further mess!

 

Thanks

[dx100uk]

were you notified by the PDL company that they were going to take that money?

 

 

they are not just allowed to do it!!

 

We have been telling people to put a letter into their bank instructing them not to make any payments under any circumstances to these companie

http://whatconsumer.co.uk/visa-debit-chargeback/- it works!

 

banks MUST follow written intructions from their customers !

This fsa guide has now been updated:

 

http://www.fsa.gov.uk/pubs/consumer_...ghts_guide.pdf

 

Here's the text:

 

Cancelling a regular

card payment:

 

When you give your credit or debit card

details to a company and authorise

them to take regular payments from

your account, such as for a gym

membership or magazine subscription,

it is known as a ‘recurring transaction’

or ‘continuous payment authority’.

These are often confused with direct

debits, but do not offer the same

guarantee if the amount or date of the

payment changes.

In most cases, regular payments can

be cancelled by telling the company

taking the payments. However, you

have the right to cancel them directly

with your bank or card issuer by telling

it that you have stopped permission for

the payments. Your bank or card issuer

must then stop them – it has no right to

insist that you agree this first with the

company taking the payments.

Be aware, though, that you will still be

responsible for paying any money that

you owe.

see: http://www.consumeractiongroup.co.uk/forum/showthread.php?336569-How-to-remove-a-lender-s-continuous-payment-authority(2-Viewing)-nbsp

http://www.fsa.gov.uk/pages/consumerinformation/product_news/banking/know_your_rights/solving/index.shtml

dx

[BankFodder]

What you are describing is extremely common and I think that it is completely unfair and is a breach of the banks BCOBS obligations.

 

Effectively the bank is refusing to give you an ordinary overdraft on reasonable terms - presumably because they are worried about your fibnancial situation but as soon as an opportunity comes along to lend you money on terms which are much more favourable to the bank, they do so. Not only is it a breach of BCOBS, I think that it is irresponsible lending.

 

I think that this kind of behaviour needs to be challenged. It confirms again that Lloyds - and others are a ruthless and dishonest bank. They get away with it too often.

 

This would take a court action to deal with but if it ionterests you we would be happy to hold your hand on this - with a high chance of success.

[wigan89]

were you notified by the PDL company that they were going to take that money?

 

 

they are not just allowed to do it!!

 

We have been telling people to put a letter into their bank instructing them not to make any payments under any circumstances to these companie

http://whatconsumer.co.uk/visa-debit-chargeback/- it works!

 

banks MUST follow written intructions from their customers !

This fsa guide has now been updated:

 

http://www.fsa.gov.uk/pubs/consumer_...ghts_guide.pdf

 

Here's the text:

 

Cancelling a regular

card payment:

 

When you give your credit or debit card

details to a company and authorise

them to take regular payments from

your account, such as for a gym

membership or magazine subscription,

it is known as a ‘recurring transaction’

or ‘continuous payment authority’.

These are often confused with direct

debits, but do not offer the same

guarantee if the amount or date of the

payment changes.

In most cases, regular payments can

be cancelled by telling the company

taking the payments. However, you

have the right to cancel them directly

with your bank or card issuer by telling

it that you have stopped permission for

the payments. Your bank or card issuer

must then stop them – it has no right to

insist that you agree this first with the

company taking the payments.

Be aware, though, that you will still be

responsible for paying any money that

you owe.

see: http://www.consumeractiongroup.co.uk/forum/showthread.php?336569-How-to-remove-a-lender-s-continuous-payment-authority(2-Viewing)-nbsp

http://www.fsa.gov.uk/pages/consumerinformation/product_news/banking/know_your_rights/solving/index.shtml

dx

 

Thanks for the advice, is there any chance of getting anything done about this now 6-8 months down the line?

 

What you are describing is extremely common and I think that it is completely unfair and is a breach of the banks BCOBS obligations.

 

Effectively the bank is refusing to give you an ordinary overdraft on reasonable terms - presumably because they are worried about your fibnancial situation but as soon as an opportunity comes along to lend you money on terms which are much more favourable to the bank, they do so. Not only is it a breach of BCOBS, I think that it is irresponsible lending.

 

I think that this kind of behaviour needs to be challenged. It confirms again that Lloyds - and others are a ruthless and dishonest bank. They get away with it too often.

 

This would take a court action to deal with but if it ionterests you we would be happy to hold your hand on this - with a high chance of success.

 

Thanks for the reply, if there was anything you could help me with regards to court action that would be a great help.

 

If it makes any difference they've provided me with an overdraft in recent months so i only pay the monthly overdraft fees and interest, i've also been paying £10 for a control account for the last 8 months which has been pointless.

 

If there are specific details you would like to know please let me know as i don't want to waste anyone's time!

 

Thanks lot,

Jay

[citizenB]

wigan, I suggest you read all the BCOBs articles in my signature - highlighted in greeen before you make your first move. That way you will understand what BCOBs is all about.

 

In the link below there is a letter that was written to RBS - a situation where an account was allowed to go into an overdraft situation on terms that were favourable to the Bank and not the consumer.

 

http://www.consumeractiongroup.co.uk/forum/content.php?829-Charges-successfuly-reclaimed-from-RBS-last-year

 

Given what BankFodder has said in his post above, you might want to try writing to the Bank first in order to give them the opportunity to resolve the situation for you. If they dont, then perhaps you could consider taking court action.

[BankFodder]

There is no problem about dealing with this now.

 

Let me explain your options to you.

You could complain to the FOS. This is the bank's preferred route. It will take a long time, - up to two years. You will not know what is going on because correspondence from the bank will be kept private. In my view the final FOS decision will be against you. The FOS is not known for making imaginative or novel decisions.

An FOS compalint would not cost you anything - win or lose.

 

You could bring a county court action. This would be a Small Claim. You would have to lay a claim fee - less than £100 I expect and if you lost, you would not get this money back. If you lost, there would be very little risk of any order for costs because that is the basis of the Small Claims system.

The bank will be enraged that you challenge them on this. You can expect dirty tricks and threats from their lawyers. The bank might also retaliate by closing down your overdraft - but you would add this to your claim for unfairness.

If you won, you would get your claim fee back plus compensation plus reasonable travel expenses - and also you would have scored a very serious blow for fair treatment against the banks generally and the press owuld be very interested in your case.

If Lloyds thought that the case was going badly for them, they would settle and try to get you to sign a confidentiality agreement - which you should refuse.

 

If you want to get involved in a fairly high profile case, get your money back and get fair treatment then we would help you all the way.

You should only take a court case if you are prepared to go the whole hog.

No one so far has been prepared to step up to the mark on a BCOBS issue and the result is that the banks still use their oppressive money-making bullying tactics.

A few successful BCOBS cases would change their way of thinking quite quickly.

[wigan89]

wigan, I suggest you read all the BCOBs articles in my signature - highlighted in greeen before you make your first move. That way you will understand what BCOBs is all about.

 

In the link below there is a letter that was written to RBS - a situation where an account was allowed to go into an overdraft situation on terms that were favourable to the Bank and not the consumer.

 

http://www.consumeractiongroup.co.uk/forum/content.php?829-Charges-successfuly-reclaimed-from-RBS-last-year

 

Given what BankFodder has said in his post above, you might want to try writing to the Bank first in order to give them the opportunity to resolve the situation for you. If they dont, then perhaps you could consider taking court action.

 

Thanks for the information, i've read up on BCOBS a little over the last couple of weeks - certainly no expert but i'm getting there, thanks for the info!

 

There is no problem about dealing with this now.

 

Let me explain your options to you.

You could complain to the FOS. This is the bank's preferred route. It will take a long time, - up to two years. You will not know what is going on because correspondence from the bank will be kept private. In my view the final FOS decision will be against you. The FOS is not known for making imaginative or novel decisions.

An FOS compalint would not cost you anything - win or lose.

 

You could bring a county court action. This would be a Small Claim. You would have to lay a claim fee - less than £100 I expect and if you lost, you would not get this money back. If you lost, there would be very little risk of any order for costs because that is the basis of the Small Claims system.

The bank will be enraged that you challenge them on this. You can expect dirty tricks and threats from their lawyers. The bank might also retaliate by closing down your overdraft - but you would add this to your claim for unfairness.

If you won, you would get your claim fee back plus compensation plus reasonable travel expenses - and also you would have scored a very serious blow for fair treatment against the banks generally and the press owuld be very interested in your case.

If Lloyds thought that the case was going badly for them, they would settle and try to get you to sign a confidentiality agreement - which you should refuse.

 

If you want to get involved in a fairly high profile case, get your money back and get fair treatment then we would help you all the way.

You should only take a court case if you are prepared to go the whole hog.

No one so far has been prepared to step up to the mark on a BCOBS issue and the result is that the banks still use their oppressive money-making bullying tactics.

A few successful BCOBS cases would change their way of thinking quite quickly.

 

Personally, as citizenB stated i would actually prefer to send a letter first to see if they were willing to do anything, but if you don't think this will help then i would certainly like to get help with the BCOBS route as i've heard many stories of the FOS being more or less useless and time consuming.

 

Where do i start?

 

Many thanks,

Jay

[BankFodder]

No, you must send a letter first. That is absolutly necessary.

However, don't be under any illusion that it will have any effect - it won't. But you must go through the steps.

Here is what will happen.

You will send a letter. They will eventually acknowledge and say that they have 8 weeks to answer. About 8 weeks later, they will write back and say that they have investigated and that they are within their rights. They may then offer you the FOS option.

 

What you should do is, send the letter, tell them that they have 14 days to reply or else you will starta legal action. They will ignore you and still write back with the 8 week letter. At the end of the 14 days, issue the claim.

Once the claim is issued, they will start to pay attention and to treat you seriously.

 

Before you threaten legal action you should make sure that you understand all of the issues thouroughly. Don't get involved and "look it up as you go along".

It won't take you long with the info on this site to understand what it is all about and to understand the way forward.

Over to you.

[wigan89]

No, you must send a letter first. That is absolutly necessary.

However, don't be under any illusion that it will have any effect - it won't. But you must go through the steps.

Here is what will happen.

You will send a letter. They will eventually acknowledge and say that they have 8 weeks to answer. About 8 weeks later, they will write back and say that they have investigated and that they are within their rights. They may then offer you the FOS option.

 

What you should do is, send the letter, tell them that they have 14 days to reply or else you will starta legal action. They will ignore you and still write back with the 8 week letter. At the end of the 14 days, issue the claim.

Once the claim is issued, they will start to pay attention and to treat you seriously.

 

Before you threaten legal action you should make sure that you understand all of the issues thouroughly. Don't get involved and "look it up as you go along".

It won't take you long with the info on this site to understand what it is all about and to understand the way forward.

Over to you.

 

Sorry i'm a little bit confused about what sort of letter i should be sending them first, are there any templates i can base my own letter off at all? Should i be telling them i've been unfairly treated and giving them 14 days to reply?

[BankFodder]

The letter would be the same in both instances except in one of them you would end up saying that they should consider that this letter is the begining of the pre-action protocol and that if you do not receive a satisfactory reply within 14 days that you will begin an action in the County Court and without any further notice.

 

The body of the letter should contain your complaint, the reason for the complaint. You should point out that you consider that they have treated you unfairly in breach of their obligations under the Banking:Conduct of Business Regulations 2009 and that furthermore the "unarranged overdraft" which they eventually permitted is an example of irresponsible lending.

Tell them that you want reimbursement of all charges and interest which have been levied at the unarrange rate.

 

Draft a letter and we'll lok at it here.

Keep it succinct and to the point.

Don't be verbose