Llyods Overdraft Account Dilemma

[jumper999]

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

Thanks in advance

[leclerc]

Re: Llyods Overdraft Account Dilemma

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

Thanks in advance

Does he have any priority debts(mortgage/rent, council tax, utilities)?
Section 9 the lending code, financial difficulties.

[jumper999]

Re: Llyods Overdraft Account Dilemma

Thanks lec, no he does not have any of those as he is living at home with his mum............just pays for housekeep and shopping when needed.

He does not have any assets or savings either.

[Caspar]

Re: Llyods Overdraft Account Dilemma

Still worth a read of the lending code IMO. There's a lot there as Leclerc correctly highlighted. I'd also suggest he needs to open a parachute account with another unrelated bank if he has not already done so.

[jumper999]

Re: Llyods Overdraft Account Dilemma

Thanks casper but reading the lending code and going through all the complaints procedures and unfairness of things will take forever. I think it would be better to get him to default and then come to an arrangement with the DCA as this will take forever as it has to get lloyds to agree to an arrangement as they will not listen and keep continuing to add interest and charges.

[leclerc]

Re: Llyods Overdraft Account Dilemma

even though he is at his mum's has he had a drop in income as a result of less overtime,. etc, etc

[jumper999]

Re: Llyods Overdraft Account Dilemma

Yes he used to work for the NHS but was laid off last year as they had to cut back and let some staff and as he was not there long he was one of them.

He is now driving part time as a taxi driver for somone and looking for another full time job. Work has not been good for a while and he is trying his best but no use at the moment. He does not have any other debts and has never had any and is worried about this quite a lot.

[leclerc]

Re: Llyods Overdraft Account Dilemma

Yes he used to work for the NHS but was laid off last year as they had to cut back and let some staff and as he was not there long he was one of them.

He is now driving part time as a taxi driver for somone and looking for another full time job. Work has not been good for a while and he is trying his best but no use at the moment. He does not have any other debts and has never had any and is worried about this quite a lot.

BINGO, he needs to explain that he needs help because in spite of living at home, he lost his job last year and is currently only working part time whilst looking for full time work. He has a temporary cash flow problem and needs the bank to help him in the short term.

[Caspar]

Re: Llyods Overdraft Account Dilemma

..... as per the Lending Code I believe. Jumper, I wasn't suggesting going through the entire complaints procedure. Often making the bank know you're aware of it can produce some fairly dramatic results - I've seen it several times.

Hopefully the route of temporary help highlighted above will solve the problem now anyway.:tinysmile_grin_t:

[jumper999]

Re: Llyods Overdraft Account Dilemma

Thanks lec & casper great advice guys

[jdes26]

Re: Llyods Overdraft Account Dilemma

I would go back to lloyds and explain under BCOBS that they have a right to treat people fairly so a repayment plan offershould be accepted

[leclerc]

Re: Llyods Overdraft Account Dilemma

I would go back to lloyds and explain under BCOBS that they have a right to treat people fairly so a repayment plan offershould be accepted

The Lending Code section 9. If you are quoting BCOBS and treating customer fairly, the bank have had a duty to do so for sometime prior to BCOBS. Which specific part of BCOBS do you think will help in this specific instance(since the more info the better. If you are suggesting simply saying BCOBS, in general, the bank will not necessarily do what we need them to do. If you are specific then the impression you get is that someone knows what they are doing/saying).