Lloyds TSB major complaint Financial Ombudsman rejected complaint

[Daz1979]

Basically Lloyds TSB who had put interest on my loan while I was on a debt management plan without informing me. This happened a year after the debt management plan started and Lloyds TSB had asked me to sign with them on interest rate but I was informed by the debt management company - FH Debt Solutions (formerly Financial Helpline) to send all documentation to them and they would tell Lloyds TSB that I rejected their offer.

The Ombudsman then looked into the case and ruled in Lloyds TSB's favour yet I am absolutely certain that Lloyds TSB are in the wrong as I'm sure this is against my rights as I have a right to know whats happening with the loan and Lloyds decided to be snide and not tell anyone.

[Never-In-Doubt]

Re: Lloyds TSB major complaint Financial Ombudsman rejected complaint

Hi

They're allowed to charge interest, only a court can tell them not to.

You don't have a complaint, let alone a serious one, from what you're saying.

Sorry but you'd really struggle with that; as they are allowed to charge interest as per the agreement.

[Daz1979]

Re: Lloyds TSB major complaint Financial Ombudsman rejected complaint

Only thing is they put the interest on after a year and never informed me that they were doing that. I was told that the interest would be frozen.

[Never-In-Doubt]

Re: Lloyds TSB major complaint Financial Ombudsman rejected complaint

Which is correct. If they agree to such things; it's never indefinitely, it's for 3 / 6 / 12 months!!

Sorry mate. I really can't see how you have any valid argument there.

What did the FOS say in the ruling?

[Daz1979]

Re: Lloyds TSB major complaint Financial Ombudsman rejected complaint

So I wonder why the Debt management company told me it would be frozen - I was thinking about an IVA at the time instead but was convinced that this was the best option.

[Never-In-Doubt]

Re: Lloyds TSB major complaint Financial Ombudsman rejected complaint

So I wonder why the Debt management company told me it would be frozen - I was thinking about an IVA at the time instead but was convinced that this was the best option.

DMC's are notorious for lying to debtors, it'd be them I would be arguing with to be honest but remember most things are only agreed for 12 months - not indefinitely.

Are you still paying? If so, why?

[Riz]

Re: Lloyds TSB major complaint Financial Ombudsman rejected complaint

The FOS sometimes do uphold complaints on interest and charges.

Example here: http://www.ombudsman-decisions.org.u...x?FileID=10121

But as Nids know, each decision is individual, and the FOS are massively inconsistent.

[Never-In-Doubt]

Re: Lloyds TSB major complaint Financial Ombudsman rejected complaint

But as Nids know, each decision is individual, and the FOS are massively inconsistent.

Yep, sadly they are inconsistent because they don't actually follow law but instead go on what they perceive to be fair based on the facts. So get a clued up adjudicator, you'll be in luck for a fair hearing. Get a fool (95% of them) - and sadly you'll get buggered by them.

Good job anything they say and do is not legally binding cos a very high % of things they do is actually wrong and in direct breach of actual legislative law.....

[Daz1979]

Re: Lloyds TSB major complaint Financial Ombudsman rejected complaint

DMC's are notorious for lying to debtors, it'd be them I would be arguing with to be honest but remember most things are only agreed for 12 months - not indefinitely.

Are you still paying? If so, why?

That is why I'm trying to get all of the creditor details so I can deal with them individually.

[SaltnVinegar]

Re: Lloyds TSB major complaint Financial Ombudsman rejected complaint

So I wonder why the Debt management company told me it would be frozen - I was thinking about an IVA at the time instead but was convinced that this was the best option.

If we all had £1 for when a debt management company (especially one that charges a fee) said that interest would be frozen...........

Someone else here http://forums.all-about-debt.co.uk/s...vice-needed%29 who had exactly same scenario.

Its a very common scenario - there are a lot of people now turning up on the forums who have been on DMP's since the 'credit crunch' and expecting their DMP balances to be approaching zero only to find they still owe ££££'s due to companies still charging interest.

The DMP companies are washing their hands (as nothing was ever put in writing that interest would be frozen) and leaving people still severely in debt having taken hundreds if not thousands of pounds in fees.

If you're in a fee paying DMP get out of it now - this is not helping your situation.

Best
SnV

[Daz1979]

Re: Lloyds TSB major complaint Financial Ombudsman rejected complaint

I've just cancelled the standing order with the DMC and have told all creditors I owe money to what I'm doing.

[Never-In-Doubt]

Re: Lloyds TSB major complaint Financial Ombudsman rejected complaint

and have told all creditors I owe money to what I'm doing.

eh? Why did you go and do that?

Do you know your creditors then, ie all of them? Presumably so, if you just rung them all - but then this, confuses me!!

That is why I'm trying to get all of the creditor details so I can deal with them individually.

[Daz1979]

Re: Lloyds TSB major complaint Financial Ombudsman rejected complaint

So I can get the details and get them to send their bank details to me so I can deal with them direct and not through some fee charging mush.

[Never-In-Doubt]

Re: Lloyds TSB major complaint Financial Ombudsman rejected complaint

So I can get the details and get them to send their bank details to me so I can deal with them direct and not through some fee charging mush.

Who is your DMP through? Have you considered unenforceability...?

[Daz1979]

Re: Lloyds TSB major complaint Financial Ombudsman rejected complaint

Yeah I tried unenforcability last year but it didn't work as they had the original agreement. The DMC is FH debt solutions.

Like I said I've cancelled the standing order to them and got all the creditors to send me their bank details - this will save me £25 a month which will be a huge help to finishing the smaller debts. I've also got enough money from my employers bonus scheme to pay my car insurance yearly rather than monthly which will be a big help as well.