Lloyds TSB v Ganderton - what's the next step?

[floggingablackhorse]

Paid £10 and received 6 years' of statements. This was then followed by an initial letter requesting £1300 refund of charges. Lloyds sent me a letter explaining their "justification" in these charges - this was a few weeks ago. I have now received a 'frightening' letter from their Solicitors (Sechiari, Clark & Mitchell, based in Brighton) threatening me to inject funds immediately into my account to the tune of at least £400. My situation: £1900 overdrawn, £1300 of which is charges. Account not been used for over a year. Have since opened an account with a Building Society so have back-up account to use.

Solicitors have sent letters before, threatening to take action to recover the full amount. I am currently unemployed... Any suggestions? Take them to Court?

[nicsussex]

well this will probably be the only way that you get the charges back - they will more than likely issue a counterclaim against you - but that should be nothing to worry about - you should write to them stating that the account is in dispute in the meantime

[davethorp]

What proportion of your overdraft is authorised?

 

You could end up in a sticky situation if Lloyds suddenly remove an authorised as a revenge tactic. You could also be in a sticky situation if the overdraft is fully (or mostly) unauthorised.

 

You state that the account has not been used for a while and [problem] are harassing you. Speaking from experience it's probable that a court claim from Lloyds will soon follow. If that is the case you can defend most of the claim but may have to admit some of it depending on the exact figures.

 

Can't help much more without knowing the exact current state of play regards your overdraft, if it is agreed (or if any of it is). If it isn't authorised chances are you'll be going to court before long one way or another though you should be able to defend most of it if they take you before you take them

[floggingablackhorse]

£1500 is authorised - the remaining £400 is unauthorised but not by me actually using funds I don't have but by Lloyds charges month by month tipped the scales and now totals £1900. Any advice?

[davethorp]

If £1500 is authorised and as of yet they haven't taken it off you then proceed as you are for now. Have you sent lloyds a letter before action. If so the next stage is to file with the court. I'd avoid moneyclaim online if I were you for 2 reasons

 

1. Moneyclaim doesn't let you put as much information into your particulars of claim as doing things the old fashioned way does

2. You state you are unemployed and so are entitled to exemption from court fees (if you receive JSA). It is not possible to apply for exemption when filing your claim online meaning you would have to pay the fee and then apply for a refund.

 

However be aware that some banks try and take overdrafts off people who claim charges against them. As your overdraft is some £700 greater than the charges you could end up in a mess if Lloyds play hardball and demand full repayment of your overdraft. This isn't a reason to not pursue your charges but is something to be aware of. As you already have a parachute account that will help minimise the mess