lloyds bank charges reclaim/ fos said yea

[antonia26]

Hi been helping a friend who had loads of bank charges on top of more which got out of control.

 

So they he gave her a overdraft to pay them off the figure in 2008 was 1150 she's been paying £45 A month.

Last October they decided they was not allowing her to pay monthly anymore and defaulted it she had 466 left to pay.

So made a complaint to lloyds and the fos .

 

Now fos have come back and said she believe the bank charges where correct but die to her being on benefits all this time and breaking the payment plans regular they should of defaulted her in may 2009 so is owed all chargers and interest back from then plus 8% and £100 compo.

On top of that original debt of 1150 she also had more bank charges of £1655 from may 2009 to November 2015. Which they are willing to pay but not the £45 a month minus the original debt owed. She's paid 2950 to date but there's still £449.23 owed which they want her to pay. But I.m under the impression that as she should of defaulted in may 2009 then £2950 minus the £1150 equals £1800 plus £1655 + 8%+£100 compo is owed. Fos says no just the £1655 and u still owe the £449.23

 

am I right in saying she's wrong she should get the difference in what she's been paying for last 6 years she's paid the original debt twice over already so how can she still owe it.

O yeah the whole £45 never reduced the balance some of it was interest and fees so only a portion reduced the balance that's why there is still money owing on it.

But If defaulted and went to debt recovery then this debt would of finished in 2011 if paid £45 a month.

[BankFodder]

This seems to be a potentially very interesting story – not least because of the decision by the FOS which I find to be unusually robust – if I understand everything correctly.

 

I'm afraid that the way that you have set out the story does not make the whole situation enormously clear. Maybe others will have a better understanding than me.

 

However, it would be very helpful if you could sit it out a little bit more carefully so that it could become clearer.

 

What I understand so far is that your friend had exceeded their overdraft limit and was incurring bank charges which they could not cope with.

 

Good old Lloyds bank decided to help her by providing her with extra credit in the form of an overdraft – £1150 and required her to pay £45 a month.

 

This started in 2008. Apparently your friend was dealing with this and paying off the money at the agreed rate even though the £45 a month was coming from her benefits.

 

Lloyds bank of course knew all of this but despite this, in 2014 – after six years of successfully managing this arrangement Lloyds peremptorily changed the rules and said that they would not accept the original agreed instalment any more and they wanted immediate payment of the remaining balance – which was £466.

 

This appeared to her to be very unfair and therefore a complaint was made to the Financial Ombudsman Service.

 

The FOS has upheld the principle of charges (as they inevitably would), but surprisingly seem to have said that the arrangement essentially was unfair and that the bank should simply have defaulted her in 2009 so that the debt was frozen at that point. The FOS decision has been to refund her all of the charges and interest +8% going back to May 2009 when the FOS say that Lloyds should have called a halt to it all.

 

After that, your story becomes a bit unclear. Maybe you could have a look at your post from where it begins "on top of that…" and set it out more clearly for us.

 

If you could post up the letter of complaint to the FOS and also the letter which you have received from the FOS about this matter.

 

If you could post these documents in PDF format – redacted to take out your friend's identifiers then that would be extremely helpful.

[fkofilee]

This seems to be a potentially very interesting story – not least because of the decision by the FOS which I find to be unusually robust – if I understand everything correctly.

 

I'm afraid that the way that you have set out the story does not make the whole situation enormously clear. Maybe others will have a better understanding than me.

 

However, it would be very helpful if you could sit it out a little bit more carefully so that it could become clearer.

 

What I understand so far is that your friend had exceeded their overdraft limit and was incurring bank charges which they could not cope with.

 

Good old Lloyds bank decided to help her by providing her with extra credit in the form of an overdraft – £1150 and required her to pay £45 a month.

 

This started in 2008. Apparently your friend was dealing with this and paying off the money at the agreed rate even though the £45 a month was coming from her benefits.

 

Lloyds bank of course knew all of this but despite this, in 2014 – after six years of successfully managing this arrangement Lloyds peremptorily changed the rules and said that they would not accept the original agreed instalment any more and they wanted immediate payment of the remaining balance – which was £466.

 

This appeared to her to be very unfair and therefore a complaint was made to the Financial Ombudsman Service.

 

The FOS has upheld the principle of charges (as they inevitably would), but surprisingly seem to have said that the arrangement essentially was unfair and that the bank should simply have defaulted her in 2009 so that the debt was frozen at that point. The FOS decision has been to refund her all of the charges and interest +8% going back to May 2009 when the FOS say that Lloyds should have called a halt to it all.

 

After that, your story becomes a bit unclear. Maybe you could have a look at your post from where it begins "on top of that…" and set it out more clearly for us.

 

If you could post up the letter of complaint to the FOS and also the letter which you have received from the FOS about this matter.

 

If you could post these documents in PDF format – redacted to take out your friend's identifiers then that would be extremely helpful.

 

Good Point from BF there, I have also dealt with Lloyds and getting a charge refund, however it didnt reach the FOS and i was happy with £969 they provided me.

If you could provide more info then that could be helpful Did Lloyds tell YF what to pay or was it done properly with an I+E and what YF decided to pay?

[antonia26]

Hi sorry about that. Yes she had charges on top of charges the overdraft was supplied then didn't have one before that. But during the last 6 years while paying it off the 45 was not taken off the balance only £29 the rest was interest and fees . But also during this time she was still having bank charges regular which totalled the sum of £1655 . They are willing for the £1655 to be refunded but not any of the £45 a month she's been paying with a outstanding balance left of 449.23 which they want to be paid out of what they are refunding her. We would of been happy with the settlement except the amount that's been paid back for the original debt is more than double but that they still want the 449.23 I think that's unfair

[antonia26]

This seems to be a potentially very interesting story – not least because of the decision by the FOS which I find to be unusually robust – if I understand everything correctly.

 

I'm afraid that the way that you have set out the story does not make the whole situation enormously clear. Maybe others will have a better understanding than me.

 

However, it would be very helpful if you could sit it out a little bit more carefully so that it could become clearer.

 

What I understand so far is that your friend had exceeded their overdraft limit and was incurring bank charges which they could not cope with.

 

Good old Lloyds bank decided to help her by providing her with extra credit in the form of an overdraft – £1150 and required her to pay £45 a month.

 

This started in 2008. Apparently your friend was dealing with this and paying off the money at the agreed rate even though the £45 a month was coming from her benefits.

 

Lloyds bank of course knew all of this but despite this, in 2014 – after six years of successfully managing this arrangement Lloyds peremptorily changed the rules and said that they would not accept the original agreed instalment any more and they wanted immediate payment of the remaining balance – which was £466.

 

This appeared to her to be very unfair and therefore a complaint was made to the Financial Ombudsman Service.

 

The FOS has upheld the principle of charges (as they inevitably would), but surprisingly seem to have said that the arrangement essentially was unfair and that the bank should simply have defaulted her in 2009 so that the debt was frozen at that point. The FOS decision has been to refund her all of the charges and interest +8% going back to May 2009 when the FOS say that Lloyds should have called a halt to it all.

 

After that, your story becomes a bit unclear. Maybe you could have a look at your post from where it begins "on top of that…" and set it out more clearly for us.

 

If you could post up the letter of complaint to the FOS and also the letter which you have received from the FOS about this matter.

 

If you could post these documents in PDF format – redacted to take out your friend's identifiers then that would be extremely helpful.

 

How do u post the emails not sure how to do that

[BankFodder]

It would help enormously if you could space and paragraph your posts. I have tried to improve your first post by editing it - but it makes it much easier for people to read if it can be presented in a rather more structured way.

 

I'm still not sure if I understand the subsequent part.

 

If you can convert emails to pdf documents and then upload them, we should be able to read them without difficulty

[BankFodder]

Was the extra credit which they made available to her - an overdraft or a fixed loan?

[antonia26]

It was a overdraft but wasn't credit she could use her balance always stayed to what the overdraft was . They called it a unplanned overdraft

 

It would help enormously if you could space and paragraph your posts. I have tried to improve your first post by editing it - but it makes it much easier for people to read if it can be presented in a rather more structured way.

 

I'm still not sure if I understand the subsequent part.

 

If you can convert emails to pdf documents and then upload them, we should be able to read them without difficulty

 

Not sure where to click on to upload.

Here goes again

2008 lloyds gave overdraft for 1150 with a payment arrangement of £45 a month to reduced balance only £26 of the £45 was used to reduce balance the rest in fees and interest.

 

During the last 6 years she has had more charges that wasn't added onto overdraft but paid totaling a sum of £1655 .

 

There is still 449.23 owing lloyds now want it paid In full even though no missed payments so complaint went in. We then looked at what's been paid to date and was shocked this debt should of been paid years ago.

So fos states that even though they agree with the charges she thinks they added to her financial hardship.

So she says that has the payment arrangements been broken that if she went overdrawn but the monthly payment was still taken and renewed every 6 mths .

 

Cause lloyds carried on with this they helped her get into more debt and should of defaulted in may 2009.

So word for word.

 

Back date the default to may 2009 ,meaning it will no longer be visible on Mrs credit file.

Refund the interest and charges applied from the point she should of been defaulted, in may 2009, to the present date.

 

Pay Mrs 8%simple interest on the interest and charges applied from may 2009 to the date of settlement. This will compensate for the fact she didn't. have use of the funds. This will also result in a overpayment which should be paid directly to her.

 

Compensate Mrs £100 for not taking the approximate action much earlier on which resulted in inconvenience and contributed to her financial difficulty.

Edited January 23, 2016 by citizenB
formatting

[AndyOrch]

Hi antonia.

 

"Hi been helping a friend who had loads of bank charges on top of more which got out of control. So they he gave her a overdraft to pay them off the figure in 2008 was 1150 she's been paying £45 A month. Last October they decided they was not allowing her to pay monthly anymore and defaulted it she had 466 left to pay. So made a complaint to lloyds and the fos . "

 

This is a little confusing ...could you clarify what her existing arrangements were before the authorised overdraft was granted...IE were was the charges ? On an unauthorised overdraft?

 

And if so what was the balance roughly?

 

Regards

 

Andy

[antonia26]

Hi antonia.

 

"Hi been helping a friend who had loads of bank charges on top of more which got out of control. So they he gave her a overdraft to pay them off the figure in 2008 was 1150 she's been paying £45 A month. Last October they decided they was not allowing her to pay monthly anymore and defaulted it she had 466 left to pay. So made a complaint to lloyds and the fos . "

 

This is a little confusing ...could you clarify what her existing arrangements were before the authorised overdraft was granted...IE were was the charges ? On an unauthorised overdraft?

 

And if so what was the balance roughly?

 

Regards

 

Andy

She never had a overdraft she and a change in income and got into debt and ended up with a few hundred pounds of bank charges and no way to pay them that in turn ended up with more on top and so on. So bank said we will give u a overdraft and it was to be paid every month and in turn would be reduced by a portion of the payment and the rest went on interest and fees.

So she was paying £40 a month £26 reduced the balance and the rest on fees and interest.

So as the fos as said lloyds should of defaulted in may 2009 and all interest and charges to be paid back,should all she's paid on the overdraft minus the original debt be paid back aswell.

The original overdraft for charges was 1150 she was paying £40 for a few years then £45 a month

[AndyOrch]

I still dont follow...apologies ...if she had " few hundred pounds of bank charges " Then I assume her account was overdrawn (unauthorised £200 in the red) ?

 

So the bank offered an authorised overdraft which eventually equated to £ 1150 overdrawn (in the red) she agreed to pay £45 per month for this overdraft of that £45 only £26 actually cleared the arreas and the the rest was eaten up by interest /fess?

[intend]

An update on this - a very interesting case. I am about to put in a claim for a relative.