Bank changed loan agreement - consolidation loan lloyds debts

[Farrah]

Hi everyone,

 

I'm in quite a bit of financial trouble at the moment and I was hoping someone on here could give me some advice.

 

about 3 years ago I was struggling to keep up with my credit payments.

I had a loan, credit card and overdraft, all with Lloyd's.

 

 

I spoke to them and they offered me a refinancing loan to bring the 3 outstanding debts into 1.

The loan was for £25k.

 

 

Unfortunately shortly after I agreed to the new loan I became ill and was unable to work,

I missed a few payments and Lloyd's issued a default.

I did some digging and I found out that there was PPI on the first loan that I had taken out 7 years ago.

I asked for a refund of this but Lloyd's said there was no PPI.

 

 

I went to the financial ombudsman and then Lloyd's wrote to me and said there was £5000 of PPI, which they paid me back.

they refused to pay any interest on the PPI.

 

 

Their argument was that the refund they were paying was a balance adjustment on the refinancing loan, not a PPI refund,

because had PPI not been added to the first loan then the refinancing loan would only have been for £20k and not £25k,

they were changing the terms of the refinancing loan to make it for £20k instead of £25k.

I never agreed to this but they did it anyway.

 

 

My question is

 

 

an they do this?

I signed an agreement with them for a £25k loan.

 

 

Surely that is a binding contract between both parties.

Surely they can't just come back at a later date and say 'sorry, the original loan amount was wrong,we're changing it'

especially after I had defaulted.

 

 

Had the loan been for £20k originally then the repayments would have been £100 a month less and I might not have defaulted.

 

 

Stupidly I got myself into further debt by trying to cover the repayments,

my total debt now stands at £32k, all with DCAs.

 

 

I've gone from a clean credit file with 3 accounts,

to a totally trashed file with 9 defaults and debt collectors ringing me 20 times a day.

I can't afford to pay these debts and I'm really struggling.

 

 

I could cover the other debts on a repayment plan but not the £20k Lloyd's debt as well, which is now with Lowell's.

 

 

I know it's a long shot, but since Lloyd's admitted the loan was wrong in the first place

and then changed the terms at a later date without me agreeing to it,

 

 

is the agreement still valid?

Can I challenge it and have the debt written off?

 

Any advice would be greatly appreciated. Sorry for the long post.

 

As a side note,

I am moving house soon.

Should I just move and not tell the DCAs?

All of the defaults are at least two years old, they'll be statute barred in 4 years and

if the DCAs can't find me they can't hassle me.

 

 

I realise lowells will probably try for a CCJ for the £20k,

but at least the other £12k will be written off.

 

 

All of the debt is unsecured, and

I don't own a house or car or anything of value.

[dx100uk]

Lloyds were sadly correct in restructuring the loan after PPI was reclaimed

if that is what happened?

 

 

I thinkyou need to send them an sar

get all the statements for everything that was refinanced into the loan.

 

 

I get there was more than one PPI rolled into the loan?

 

 

as for you other debts...

 

 

I hope you've sent every one of the DCA's a CCA request?

 

 

lastly, I would sadly be writing to all your creditors informing them of the change of address

 

 

as they could gt a CCJ served to your old address and win by default if you don't know about it.

 

 

though the CCA request could serve this purpose if you wait until after your move to send them.

 

 

dx

[Farrah]

That's the annoying thing. Lloyd's aren't calling it a PPI refund.

If it was then by law they also have to pay 8% per annum interest,

which would come to over £1000 they owe me.

 

 

But because it's a balance readjustment they claim they don't owe me any interest on it.

Which just seems wrong on so many levels.

 

 

Not only have they trashed my credit rating and caused me untold amounts of stress and worry,

they're also trying to get out of paying me what they owe me.

 

As for the DCAs, sent all the 'prove it' letters but just got the standard 'it's not necessary' replies.

That's why I wanted to just move and ignore them.

 

 

I hate the idea of paying these pond life a single penny.

I would happily file for bankruptcy if it wasn't for the fact that one of my other debts is a guarantor loan,

so they'd go after my father for the money if I went bankrupt,

and I can't put that on him.

[dx100uk]

that's why I said SAR Lloyds

 

 

let s get to the bottom of what happened and put in a proper claim.

 

 

the FOS/FCA recently stated lots of refunds were dealt with poorly

and LLOyds were one of them listed.

 

 

as for the prove it letter

 

 

theres no reason why that does not apply.

 

 

you should be send a CCA request to everyone.

 

 

as long as the debt is not a bank account or a mobile phone debt

 

 

dx

[Farrah]

Thanks for getting back to me so quickly Dx, I really appreciate it.

 

 

I'll send an SAR to Lloyd's tomorrow.

 

 

when the FOS was investigating the case Lloyd's provided a full breakdown of the refinancing loan.

I can't remember the exact figures but it was roughly £21k loan, £2000 overdraft and £2000 credit card.

 

 

The original loan was £15k, but it was a professional studies loan to pay for university

there was a 4 year no repayment period while I was at university,

 

 

when I started repaying it the interest that had accrued over those 4 years made it over £20k.

It was only later that I realised that a £3000 PPI loan was added onto that original £15000,

and the interest on that PPI loan took it to over £5000 by the time it was refinanced.

 

As for the CCA requests,

I can't be certain but I think I might have sent them already.

I used templates that I found on here but I just got standard replies.

 

 

Lowell sent me a letter with a badly photocopied Lloyd logo at the top,

in the same envelope as a letter from lowells,

both saying that the debt had been assigned to Lowells.

 

 

The two letters both had the same printer code running along the side,

so they were obviously both printed by Lowells.

 

 

I rang Lloyd's and they said the debt had been sold on but they couldn't tell me who they'd sold it to.

But just to be on the safe side I'll send new CCA requests tomorrow.

[Farrah]

None of the debts are for a mobile phone, and only one is related to a bank account, which is £350 for a Lloyd's overdraft. The rest are personal unsecured loans, credit cards and payday loans.

[dx100uk]

CCA time then!!