A friend/Lloyds TSB/Overdraft charges!

[di30]

A male friend who is a good friend of the family came to visit today.

He is dyslexic and has no use of the internet, so I did say I will see what I could do to help.

He will not mind me giving his first name, and he is Andy.

Anyways, he called into Lloyds TSB bank today and made a query about the payment they will be taking from him just after the new year of £170!!!

Apparentely the bank manager said its because he went over his overdraft limit.
She said to him he should always read the small print when taking this out, so he explained he was dyslexic and he was not going to leave it there.

There is more to it, but I told him to forward me the statement when we see him next and if I could have some help on this, that would be a great help.

I am about to help him make a reclaim on loan ppi's as well.

Cheers.

[billypre]

Re: A friend/Lloyds TSB/Overdraft charges!

£170 ? Is that a charge of £170 ? Surely not.

Not sure if they could use the dyslexic route as a defence because it is probably up to your friend to get help if he has trouble reading. Not trying to be harsh but just playing devils advocate.

Any more info Di ?

Oh, and isn't the bank manager a charming piece of work eh !!!

[di30]

Re: A friend/Lloyds TSB/Overdraft charges!

LOL your right there Billy!

I will be getting more details from him now after Xmas.

I think he is basicallly baffled on how he owes £170 which is said to be debited 04 Jan 2011, but otherwise no other details at the moment, will get to know more when he drops off his statements, but according to him he said its in regards of the overdraft.

Cheers.

[di30]

Re: A friend/Lloyds TSB/Overdraft charges!

Hi folks

Hope everyone have had a fab xmas and also wishing you all the very best for 2011.

Anyway, I have received more info from Andy, but unable to scan the docs to my computer at present, I am currently waiting for my oldest son to reset it all back up for me, I am hopeless when it comes to technology lol.
So I will do this in due course, but meanwhile a little more info here:

Unfortunately, due to the bad weather and even worse where Andy lives on the mountain, his post did not reach him to warn him about the charges until after they automatically debited them.
I did tell him, this is Lloyds for him.

A background of Andy, he is dyslexic, and suffers with extreme depression, and also a back disability.
Andy is unable to work due to this and receiving DLA and Income support benefits only.

The letter he received dated 8 December 2010, he did not receive until the day before Xmas Eve.

Dear Mr XXXXX

We are writing to you about your unplanned overdraft which we now require you to repay within 2 days of receiving this letter.
Until payment is received, the administration of this account will pass on to our collection centre.
Payment due - £200.22.

Please make your payment straight away, you can do this at any of our branches or by calling us with your debit or credit card details.

.................................................. .................................................. .............................

They have taken out this payment automatically from his account, so I have suggested that he open a new account elsewhere, and get all debits and payments being made into the account into the new bank.

He did take the letter into the bank with him when he received it and asked what was it all about, as he cannot understand it due to his dyslexia, she told him they can come to an arrangement as he have gone into an unplanned overdraft, and asked when he was due money, he told her his DLA was due to enter the account, and just said he would have to come back to make arrangements.
But unfortunately the payment have since been debited and he was left with no money to live on, not even over the xmas period, so basically as soon as his benefits are paid in, its chewed up by the unplanned overdraft.

As far as I know he did not receive any previous letters on this, but on the latest statement it does state that further payments are no due to come out of the account on 4th Jan 2011, these are:

Breakdown of O/D Fees incurred
Daily feess as detailed below - £96
Monthly fee - £15
Total unplanned fees - £111.00

6 daily fees of £6 where unplanned overdraft balance is £0.01 - £24.99
Period from 02.11.2010 - 07.11.2010
4 daily fees of £15 where unplanned overdraft balance is £25 - £100.00
Period from 08.11.2010 - 11.11.2010.


Any help will be great folks, but I do need to get a letter into them on his behalf as soon as possible, cheers folks.

[billypre]

Re: A friend/Lloyds TSB/Overdraft charges!

Those charges are outrageous !!!!!

I wonder if there is a way to argue that the direct debit or standing order which came out just should have been returned unpaid rather than them creating an unauthorised overdraft ?? Maybe not.

I think due to the bad weather etc there should certainly be some leeway here as he wasnt to know until he received a letter. Are the branch totally unwilling to help ?

He should certainly open a new account elsewhere or use his right to "first appropriation" here as it will apply. Whether lloyds agree or not hmmmm........

[di30]

Re: A friend/Lloyds TSB/Overdraft charges!

Cheers for that Billy.

You have made a good point though in regards of them creating an unplanned overdraft and in regards of the letter, and not only that I have some info from the Royal Mail too that they were not able to deliver the letters to that area due to the bad weather conditions, that may also help.

[Pixie]

Re: A friend/Lloyds TSB/Overdraft charges!

Hi

I've just seen this Di and my daughter went through something similar.

She received a letter saying that she hadn't enough money in her account to pay her direct debits so they set up an overdraft for her for which they were charging £15 a day (I think she was overdrawn by approx £40) By the time she received the letter she already had 4 days of charges. I wrote a letter for her asking for the charges to be waived and also asking if it wouldn't have been cheaper (for her) for them to just not pay the direct debit.

According to the banking charges section on the Lloyds TSB website, the maximum unplanned overdraft fee is £10 with a monthly fee of £5 and a maximum of 8 daily fees in a monthly charging period - so I don't know where they get the £15 per day from!

Also, the charges for a returned item is only £10 so they're on a nice little earner 'giving' people unplanned overdrafts without their consent, which I'm not sure is legal anyway!

Write the letter Di, explaining the situation, especially regarding the weather, and hopefully they'll waive the fees :-1;10

[di30]

Re: A friend/Lloyds TSB/Overdraft charges!

Thank you Pixiechick, that is lovely.

We posted the letter yesterday, explained the situation, the weather, his depression and dyslexia, and in regards of the 2 benefits he receives only, as he has no other income, so they have now put him in a hardship situation.

Also sent a letter of First right of appropriation.
However, with the new year bank hols, the letter won't probably reach them until Tuesday, it was post by signed for delivery as well, so will keep a check on when they receive it.

Sorry to hear you daughter went through the same thing and hope things are ok now.

I will keep you all posted, thank you once again XXX

[Pixie]

Re: A friend/Lloyds TSB/Overdraft charges!

Hopefully, they'll refund the charges as a gesture of goodwill. If they don't then I'd see about banking elsewhere if I was him!

[di30]

Re: A friend/Lloyds TSB/Overdraft charges!

Oh forgot to mention, he has an appointment with the Co op to open a new basic account with them this coming Tuesday.

[Pixie]

Re: A friend/Lloyds TSB/Overdraft charges!

Good for him! ...and you!

[di30]

Re: A friend/Lloyds TSB/Overdraft charges!

Thank you!

I shall keep you posted. x

[Never-In-Doubt]

Re: A friend/Lloyds TSB/Overdraft charges!

Ooops I missed this thread, may be too late but hey-ho!!

Di, don't forget as this is benefits plus the lack of 30 days notice for charges notified to charges debited means they will refund it all, they just don't know it yet!!

If you don't get any joy gimme a shout and we'll get it sorted, my way!!

[di30]

Re: A friend/Lloyds TSB/Overdraft charges!

Hi Niddy

Thanks for that info, and not to worry.

I will keep you posted and see what happens, any problems, don't worry I shall let you know , cheers again.

[di30]

Re: A friend/Lloyds TSB/Overdraft charges!

Hi

Andy went into Co Op to open a new account with them, I am actually still waiting to hear from him to check if Lloyds did debit any further charges as they said originally were going to on the 4th of this month, I told him to keep a check on the amounts when checking his balance etc.
He has trouble with these matters but even though dyslexic he is better on numbers sort of thing.

I will try contacting him again later, but despite that I do know Lloyds received the letter we sent.