Close Account to stop interest being added

[notlam]

Does anyone here know how to close a bank account and get the interest stopped, or reduced (at least), please?

 

I have an account with LTSB where for the past 18 months I have been trying to pay off an overdraft of £2.3k (along with other debts, credit cards, etc.), via a debt management plan set up by the CCCS (Consumer Credit Counselling Service).

 

It feels like I'm taking one step forward and three backwards though because although LTSB has agreed to accept £12 a month, they are still adding around £50 a month in interest and charges.

 

The account has been dormant for over a year now, in terms of drawings, so all I see now is my monthly payment being swallowed up by the interest and I'm getting nowhere apart from deeper in stuk.

 

If I simply close the account I expect LTSB will just carry on adding high interest regardless. :?

[Champnos]

Freezing the interest should have been agreed fromt he start. I would assume the account is no longer used anyhow? they wont let you close it in order to freeze the interest.

 

You will have to write to them and explain, im very surprised this was not agreed at the start?

[notlam]

It was requested at the start but LTSB never agreed or disagreed, from what I recall.

[pebbles26]

hi, i am with payplan and lloyds refused to stop the interest for me, so last year i sent them a letter stating i would pay them a token of £1 per month until the interest is stopped, low and behold a week later got a letter stating they would stop it for 6 months and then review it so i replied thanks and i willl review my circumstances in 6 months to see if i can continue paying the amount they requested and have just got it frozen for another 6 months hope this helps

[notlam]

Thanks Pebbles. I'll try that.

 

Cheers.