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Overdraft Charges / Financial Difficulties / HELP.*

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  • Overdraft Charges / Financial Difficulties / HELP.*

    Hi I’m not sure if you can help with this, thought I’d give it try! I have an overdraft with Lloyds Bank and I’m maxed out of my overdraft. I should also explain the account is not marked as late or defaulted which might become clear as its an active account, but ill explain where the problem lies. I am self employed now, and receive working tax.

    In September 2017 it was agreed that the account was going to be put into “control” as Lloyds described it, a form of special measures to ensure the account only charged £10 a month max due to my finical difficulties with Lloyds Banking Group (Parent Company). I was very happy with this as it was a lot different from the original set up closer to the £50 a month, every little helps. It was promised for 6 months with a review of the situation and was told I’ll be asked to pop in and have meetings with a local branch manager but this never happened. I was told despite it going to be reviewed it would remain in place until the overdraft was paid off and removed. The £10 was charged max in September and October.

    In November 2017 the terms of the account changed, and interest started being applied on a daily basis. 1p per £7 overdrawn, I was £1900 overdrawn and it began charging me in the region of £2.71 depending on how much cash flow goes through the account, but I was in finical difficulty so pretty much £2.71 on a reoccurring position right until the current date, so over 12 months worth of this now.

    I wasn’t written to until the proposed change had taken effect; Lloyds deny this but also deny control would continue past their new terms and conditions despite having a very upsetting and long telephone conversation on the phone. I wrote them 2 letters during the control period September – November.

    The first letter I wrote after the initial telephone conversation in September was dated 4thOctober, this letter I have a copy (as I take photos of my letters before sending them OCD for times like this). This letter is to explain that I’m having financial difficulty in general and need them to remove the £10 charge each month. I wrote this to Lloyds Baking Group (the team that dealt with control been added to the account). I wrote my second letter dated 2ndNovember allowing them their 4 weeks time frame to reply. My second letter explains and reiterates the first letter, but to also add a new development of me been made redundant from my job effective of December 2017.

    I then receive a letter dated November 9thfrom the complaints team at Lloyds bank, explaining that the overdraft will be part of the new terms despite never been informed other than this letter to which point they had already been in force for around 5 days, and was been charged daily interest. I then straight away within 24 hours send a very detailed letter explaining the interest to be incorrect as my account is control, among the several telephone conversations I don’t get a response until February which adds a copy of the letter dated 9thNovember and that I can refer my complaint to ombudsman. I go on to send several others letter before receiving another copy of my November letter and stating I’ve exhausted my resources with the bank and they will no longer reply to this issue in the future.

    I then bring it to the attention of the ombudsman who cuts a long story short doesn’t uphold, and states the bank has made no error, but can be reviewed again by an ombudsman (further up the team). I have had other correspondence I have found since so looking into getting the matter looked further to, but the bank now refuses to talk about the complaint at all, and still be charged, despite proving and obviously originally the bank acknowledging the issue at the beginning of September that I was in financial difficulty.

    With this above I appreciate that’s a lot of information, but hopefully helpful enough to perhaps look at this and see what others peoples takes on the matter as in total a year on, I’m still in £1900 overdraft my benefits are swallowed up when a payment goes in -£1902.71 … -£1905.42 … and so on… I got to last week -£1949.41. Then my benefit went in to my account Working Tax, I’m on a low income. That is £86.15, which once the bank takes its portion leaves me with £36.74. This is all documented with Lloyds and I have been explaining this over the phone and other departments and well, I’m sure I’m not the only one, but I’ve really tried as I cant simply just get a loan to pay it off and its my active account, I’ve tried to leave they wont let me move it to collections.

    I might be stabbing in the dark, I might even sound whiney, but I do feel I’ve tried all my legal options so far. Any Advice, Any Help, the whole thing is really demotivating when you have several other debts and a loan.
    Last edited by mountain-river; 30 November 2018, 14:52.

  • #2

    is there any chance that you can open another account elsewhere to have everything paid into?

    slim chance I know as Lloyds can put the stoppers on changing the account to another bank,
    when we were in overdraft we opened another account first then had payments changed to the new account, as far as the new bank was concerned we were just opening a seperate acount and not changing accounts.
    as on benifits have you checked with the postoffice if you can open one with them?

    have you tried a building society?

    sorry if you think it is usless info, but it's all I can think of at the moment.

    NW xx
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    • #3
      Not quite the same situation, but I had a current account with overdraft with Lloyds and wanted out, so I changed to Co-op Bank. I have no overdraft facility, and I get a debit card and online banking. It may be worth trying them as I just explained that I wanted to have a fresh start and to get out of the overdraft situation. There was no problem (it was about 9 years ago though), and they were fine as I did not want any money from them in the way of loan or overdraft. My money was paid into that account, and I put anything I could to the Lloyds account as and when it was possible. It did not take long after the change for Lloyds to default it and pass it to a collector, so that is a good way to stop the interest and charges.
      When you have nothing you have nothing to lose


      • #4
        The plan here should be to ensure that you have an account other than with Lloyds which you can put money into in order to LIVE!

        I doubt whether you can avoid Lloyds defaulting this overdraft at some point.

        The important thing is your taking control of your finances. It isn't a crime to find yourself in reduced circumstance but I can't see a happy outcome from your present situation.
        Welcome to AAD