Old joint Lloyds TSB Loan

[joeblogs]

Over the last 3/4 years I've had a joint loan with Lloyds. During this time we missed a few payments and they continued to take them and make our bank account very overdrawn, then when it went so overdrawn they stopped taking payments and took monthly bank charges.

 

12 months ago we managed to come to an arrangement with them, but this is no longer sustainable. The other day we received a new loan offer with a higher APR/interest rate, I called them and declined to transfer the loan over. Today we received a letter confirming they will continue to accept a 'concession' payment of nearly 200 pounds per month (we have been paying this since March 2011 and it is the same monthly amount of the original loan). For one, I never even spoke about the payment arrangement of the existing loan.

 

We have managed to pay the bank charges and have now closed our Lloyds account. We are now going to be struggling to make the payments on the loan and we didnt want them dipping into the account again making matters worse.

 

What is the process for collection from Lloyds and will we be taken to Court?

 

Any advice please.

[unclebulgaria67]

A relative of mine had a outstanding loan with them and they just sold it on for debt collection, after chasing it for a number of months. Eventually, after about 7 years, after many DCA's had chased on and off, it was written off, as being statute barred, it was never going to be paid.

 

But each case is different. My relative was always moving around and they eventually left the country. There debt was about £500 and some cheeky DCA tried to claim that the amount owed was over £2500.

 

The problem is that if you could only afford to make reduced payments, the debt will still be sold on and you will be paying a DCA for an extended period.

[joeblogs]

Thanks for your input Unclebulgaria67.

 

Can a DCA take you to Court if they purchase the debt from Lloyds? Also we own our house (negative equity) on an outstanding mortgage which is current as is a priority debt, what are the chances of Lloyds/DCA putting a Charging Order on the property?

[unclebulgaria67]

Yes they could try to enforce the debt by getting a CCJ and if you did not pay, they could seek a charging order. They might not pick up the negative equity issue.

 

If the value of the debt is more than £750, they could also look at issuing a statutory demand, with bankruptcy threatened.

 

The choice is yours. Continue to make affordable repayments to whoever is collecting or live under the threat that at some point, you may be unlucky if the debt owner looks to enforce in some way.

[joeblogs]

What is a Statutory Demand?

[unclebulgaria67]

What is a Statutory Demand?

 

It is basically a letter the debt company issues via a process server, threatening to take forward bankruptcy proceedings, if you don't come to an arrangement to pay the debt.

 

I find the following linked site very usefull, as it contains a lot of info and is written in a way that is easy to understand.

 

http://www.bankruptcy-insolvency.co.uk/legal_issues_explained/statutory_demand.php

[intend]

Send a CCA request - cost £1 - use postal order and see what comes back. They have 12+2 days to reply. If late can put the account in dispute until they resond. Do you have PPI on the loan?? If yes then start a reclaim.

 

Intend

[joeblogs]

Can I ask for you advice again please?

 

We've just missed our first 'concession' payment, as explained in my opening post we are really going through a very difficult time and simply cannot pay Lloyds. We've been paying nearly 200 pound every month to Lloyds Collections and whenever I phone them I always seem to go through to an Indian call centre. All bank accounts are closed with them so they cannot take the loan out. I am wondering what to do, shall I call them and explain that we are not in any position to pay at the moment or just wait and see what happens. I think if I call them at least they will know now that we are not able to pay.

 

Any advice please as this is making me feel ill. Thanks

[BRIGADIER2JCS]

Hi please don't stress over this if you don't have the money

that can't have it.#

Be up front with them and if you can offer a smaller payment,

BUT don't phone you need to get an agreed amount confirmed

and you must get it in writting.

[Zonker]

Im no expert, but doesnt it sound like loyds allowed a loyds loan dd to be payed from a loyds account, making further charges apply. Isnt there something that prohibits this sort of unfair practice...they should have refused to pay the dd not the situation of them benefitting from rolling charges / interest from an overdrawn account?

[unclebulgaria67]

How are you making the payments ? If LTSB have your card details, then you will need to write to them, withdrawing from the current arrangement.

 

You can only pay what you can afford and if you maintain some form of payment, this should stop them taking any enforcement action.

 

I would suggest that you review all of your current outgoings and then write them down in order of priority. The LTSB loan, if it is not a secured loan, will not be very high up in terms of priority. The priority payments will be Mortgage, Council Tax, TV licence, any court fines, any other taxes, Water, Gas/Electric. Any unsecured loans or credit cards are further down the list in terms of importance.

[BRIGADIER2JCS]

It appears to me that the op has closed the accounts

and pays by other means so Lloyds can't offset.

[joeblogs]

Hi Everyone

 

Thanks for all your advice. We closed the Lloyds accounts as we knew our financial circumstances were going to change drastically and did not want them 'offsetting' as they did before. Its taken us 12 months to pay off the charges to enable us to close the accounts. They have been very uncooperative over the last 12 months and we are missing priority payments to pay this loan, something we can no longer afford.

 

To be honest, we are not currently in a position to offer them anything. How do we stand please? I feel like just phoning them up and telling them the bottom line. Thanks to you all.

[cymruambyth]

LTSB are not a priority payment, so they can go to the back of the queue! Do not miss your priority payments. Write to LTSB, give them a brief explanation of your problems and a suggested payment amount, enclosing a cheque. If this is all that you can pay, send in a cheque for this amount every month, so if they do try taking action against you then you can demonstrate that you are doing your best to pay.

[intend]

Hi - I too have outstanding loan with LTSB - managed to get the bank account into credit, only a few pence, and set the od to zero and then closed account in branch, only later to get a letter back stating cant close a/c as have outstanding loan. Stopped paying loan over a year ago, but still a little uneasy about offset.

 

Can I ask how you managed to close the account??

 

Did you send off a CCA request?

 

Intend

[joeblogs]

Hi - I too have outstanding loan with LTSB - managed to get the bank account into credit, only a few pence, and set the od to zero and then closed account in branch, only later to get a letter back stating cant close a/c as have outstanding loan. Stopped paying loan over a year ago, but still a little uneasy about offset.

 

Can I ask how you managed to close the account??

 

Did you send off a CCA request?

 

Intend

 

Hello Intend

 

We just went into the branch as one of the accounts was a joint account and asked them to close ALL accounts. It had taken us a year to pay off the offset and as we knew we were going to be struggling we wanted the accounts closed down so that they couldnt dip into the accounts again. As the accounts all had 'indicators' on them, the branch had to call up the Indian collection call centre to close them down.

 

At no time did Lloyds say we couldnt close the accounts due to the loan, in fact, the loan wasnt even mentioned. We always paid the loan over the phone to the collections via our Lloyds bank card. A few days after closing the accounts we received letters confirming the accounts were closed and a closing bank statement.

 

I cannot understand how they can tell you that you cannot close your account due to the loan. Do you pay via Direct Debit, if so cancel it. Anyway I would be insisting they close the account as I think they are just blagging you so they can dip into your account.

 

We are still uncertain what to do, we can write to Lloyds but after paying our priority debts (which we fell behind on due to paying Lloyds) we have absolutely nothing to offer them, so really could do with some advice of how to deal with this problem of offering them zilch.

[intend]

Hello JB - thanks for info - will now insist on the account being closed, but prepared as ever for hassle. Owe money on a loan and CC, which they used to offset. Thanks to this site, cleared the LTSB bank account, opened a new one with different outfit which we ensure is kept clean. DEF no DD - now realise how evil these are if in debt. CC was paid by cash in local bank using payment slip pu have just put some clowns on it to chase, even with agreement, so just walk in to a branch with account number and some cash and pay.

 

As for loan - did have agreement and again just paid cash over the counter - sent CCA request - no reply - account in dispute letter sent - no pay - nw on DA merry-go-round - thanks to this site fell in control.

 

My advice would be to write a simple but honest letter stating the facts and that you have no surplus income and that as a gesture of goodwill you will pay £1 per month, or some other figure if you fell you can, but remember you need funds for emergencies and probably lots of things you don't realise.

 

It is unlikely to go to court and if it does a judge would only award £1. With help of CAG I am sure you will be successful

 

Intend

[joeblogs]

Hi Intend

 

I'm a little bit confused (nothing unusual in that!), but you say you havent paid Lloyds during the last 12 months and your Lloyds account is still open. So I would have thought that Lloyds would have been dipping into it.

 

Are you sure its not closed as surely your bank statements would show them offsetting?

 

Maybe I've got it wrong!!!! has a DCA told you the account is still open or was it Lloyds?

 

Oh and thanks for your advice.

 

JB

[intend]

Bank account has pennies in it, no overdraft on it - so think would be hard for them under BCOBs to off set from a lower interest account (the loan) - to a higher interest account (an OD). No transactions in or out of the current account for over a year. Still a bit nervous but thanks to this site not worried.

 

Will write to LTSB telling them to close the account, thanks to your input. DCAs keep popping up but one letter stating account in dispute sees them off.

 

Intend

[joeblogs]

Hi Intend

 

Nothing stopped Lloyds making our account overdrawn by taking charges and loan. It turned into an unauthorised overdraft.

 

JB

[jdes26]

If your in hardship due to the charges then I would have a go at claiming every charge

If they have took loan payments to make you overdrawn that's a big no no!

And I would start the challenge.

1. CCA regarding loan

2. SAR regarding loan payments

3. SAR regarding bank account

Highlight all charges that has put u in overdraft

And all excessive charges that has increased since the offset

They can't offset to make your overdrawn and then charge you for it

That is a unfair relationship and if I were you I'd be on the case

Is this day and age that is GREED not fairness

Take the challenge and fight them

This is a winning chance for u

Don't shy away face them straight on!

[jdes26]

I believe with all this info you could use this to make

A court claim to ltsb as I believe every payment they took

To make u overdrawn and every charge after can be claimed and should be claimed

So tell me are u Gona kick there butts?

[intend]

Jdes - will pursue but dont want to hijack OPs thread.

 

Intend

[jdes26]

Intend

Start your own thread and let battle commence

You have nothing to lose

And with people like bankfodder , citizen b

Caro and many others. We can all try and help u!

I really believe if u have had loan offset to make u overdrawn and been charged then those charges are reclaimable

Jdes

[joeblogs]

Update on the Lloyds problems. Did as everyone suggested, wrote to Lloyds explaining our current problems, asked them to freeze interest/charges, sent them a financial breakdown and offered them a small monthly payment.

 

Got a reply back from MHA Collections basically saying they acknowledge receipt of communication, that the account is being transferred to their clients consumer debt recovery team, and whilst this happens they will accept the monthly payment offer. The letter goes on to say, whilst the account is being transferred their client will not charge any further interest on the outstanding balance, although it does not affect any interest charges that have already accrued. To fulfil their legal requirements, their client is required to send us an enforcement notice and formal demand for repayment which we do not need to respond to unless we are able to increase our payments.

 

It then goes on to say make other banking arrangement for direct debits (even though the Lloyds account is now cloised). It then says, once your account is with our clients consumer debt recovery team they will contact you regarding your monthly payments.

 

Then I receive another letter from SCM which is a Formal Demand, but MHA have said ignore any formal demands unless you can increase your payments.

 

So what does all this mean? Have they accepted the monthly payment offer and frozen interest? Should I start making the monthly payments or should I wait until the file gets to their Consumer Debt Recovery Team whoever they may be?

 

Any advice gratefully received.

 

JB