Help with Lloyds overdraft account

[transformer999]

I am trying to help my friends son out with a llyods overdraft account he has.

He has a £1400 overdraft limit and it has reached its limit but he does not have enough money to make much payments and the interest & charges have made the balance at present approx £1500.

He has tried to ask lloyds to freeze interest & charges so that he can bring the balance down but they have refused. He also asked them to close the account and then whatever payment he would make would lower the balance until it cleared but they also refused that too.

So he is between a rock and a stone at the moment and is really worried that he will never be free from this.

Any ideas Niddy on what the best way out of this is please or anyone else?

Thanks in advance

[Susie]

Re: Help with lyods overdraft account

I had the same sort of thing with the little darlings, I managed to change the account to one with a bigger charge but lower interest which halved the amount they were putting on each month.With the amount he owes that is probably not going to help though.
I stopped using the account and treated the o/d as a loan and made payments to it each month which was bringing it down nicely when they withdrew the facility. Took them about 5 months to default it which was the point where the interest stopped.

Only suggestion from my experience is if he is not worried about getting a default to change accounts and pay a bit back eack month. Lloyds are not likely to help him from the experience I have had with them so its got to be bank of mum and dad ore similar if he wants to avoid a default

[transformer999]

Re: Help with lyods overdraft account

Thanks susie, well he does have another account which is ok and he uses for all his direct debits and he just wants the payments that he makes to lloyds to reduce the balance but it keeps rising.

I was thinking that it would be best if he let the account default and then deal with a DCA.........if that would be and probably be the best solution?

[Susie]

Re: Help with lyods overdraft account

In my case they have Wezcot trying to collect on it, not sure what they are going to be like to deal with but they cannot be any worse than the bank!

[transformer999]

Re: Help with lyods overdraft account

Well if they are not going to help and come to an arrangement so this debt can be reduced it would be better to default and deal with a DCA............in my opinion and hopefully Niddy can shed some light on what to do next.

Thank you susie.

[kilasuit]

Re: Help with lyods overdraft account

lloyds wont stand down on charging interest.

i'm in massive battle with them regards to the account conduct on their part as they have missed a few vital things

[transformer999]

Re: Help with lyods overdraft account

Thanks kilasuit so maybe the only way out is let the account default then they will have to close the account and then pass it through their collections and then the chase begins. First contact with the collection agency will come up arrangement.

Damned will you do and damned will you don't situation. Why can things so be easy and simple?????????

[MrsD]

Re: Help with lyods overdraft account

might not be a bad idea to complain to the FOS, its got to be worth a shot

Is this his only debt?

details here, its a free phonecall

consumer helpline

open 8am to 6pm, Monday to Friday

• 0800 023 4567
  free for people phoning from a "fixed line" (for example, a landline at home)
• 0300 123 9 123
  free for mobile-phone users who pay a monthly charge for calls to numbers starting 01 or 02

we'll be happy to phone you back, if you're worried about the cost of calling us

[transformer999]

Re: Help with lyods overdraft account

Thanks ELD but I don't think that would be of any use and just a long process..........and yes that is his only debt.

[di30]

Re: Help with Lloyds overdraft account

I definately agree about complaining to the FOS, if you have given the chance for the bank to deal with your request and they keep refusing.

We were once in a situation under the hardship criteria with this bank, we opened a new account not related to lloyds, moved all our direct debits across and income paid into the new account.

Anyway, the FOS resolved our case and the bank agreed to freeze on the charges/interest, and also requested the bank pay is a compensation cheque of £100 for the inconvenience and distress caused, they told the bank to refund the charges back to the account to reduce the balance and we as stated received the compo cheque.

The way the FOS seen it was if the bank agreed to freeze charges/interest when asked at the time during a very difficult time, then the charges would not have built up.

Good luck x

[Susie]

Re: Help with Lloyds overdraft account

Thinking about the complaints side of it, before going to the FOS you may find it beneficial to send a complaint to Lloyds, if you send it direct to

LloydsTSB
Customer Relations
PO Box 797
Leeds
LS1 9LZ

Give them the dates that he wrote/called them asking for help and that they would not agree to any of his requests. Point out that he is trying hard to get rid of the OD etc. They were very helpful with me.....

[transformer999]

Re: Help with Lloyds overdraft account

Thanks di30 & susie great advice.........and yes susie I think a letter of complaint to lloyds first would be a good idea.

Ta xx

[MrsD]

Re: Help with Lloyds overdraft account

transformer it does work

i complained about Amex when we were in a DMP, they kept on adding ridiculous charges and interest and when I phoned them the eejit on the phone said they were an american bank and could therefore do what they liked
saw red
phoned FOS, guy was great, sent a letter to Amex, and got one back practically by return of post ceasing interest and refunding interest and charges and £50 compo, seemples so it does work and pretty fast too

That's what the FOS are there for, if you don't use them, Lloyds get away with their horrible behavior, so the answer has got to be complain complain complain

[transformer999]

Re: Help with Lloyds overdraft account

Your right ELD and I will get him to first write a letter of complaint to Lloyds and if it is not satisfactory then a letter of complaint to the FOS,

Great thanks so much xx

[malamute]

Re: Help with Lloyds overdraft account

Apologies if this is a late chime in - but I have had some luck with Lloyds once with an overdraft when i got them to freeze od interest just for 3 months - if he thinks its clearable in 3 months?