• Welcome to the LegalBeagles Consumer and Legal Forum.
    Please Register to get the most out of the forum. Registration is free and only needs a username and email address.
    REGISTER
    Please do not post your full name, reference numbers or any identifiable details on the forum.

Lloyds arrears amnesty ?

Collapse
Loading...
X
  • Filter
  • Time
  • Show
Clear All
new posts

  • Lloyds arrears amnesty ?

    Regarding these letters being received by Lloyds credit card customers

    You have missed payments and your account is in arrears. In order to give you a fresh start, we want to bring your account up to date and clear all of the payments that we have asked you to pay in the past which you have not paid (your arrears).

    In order to clear your arrears, we need to make a change to condition 18.5 of your agreement. It will read "We may choose not to enforce our conractual rights against you and make this contractually binding against us by giving you notice which expressly states that we have chosen to do so under this term of the agreement. In all other cases, if we choose not to exercise rights against you, we can still do so later."

    This letter gives you notice for the purposes of this new condition 18.5 the arrears standing on your account at the date of this letter have now been cleared. You will still owe us these amounts which form part of the outstanding balance on your account. However, you will no longer be treated by us a having missed any payments due to us and we will not be able to demand immediate payment of those arrears in future. Any new payments you miss going forward wil be treated as arrears on your account.

    Yours sincerely Collections Manager
    Any ideas why/what/ credit records etc ?
    #staysafestayhome

    Any support I provide is offered without liability, if you are unsure please seek professional legal guidance.

    Received a Court Claim? Read >>>>> First Steps

  • #2
    Re: Lloyds arrears amnesty ?

    Interesting, so does that mean they intend to remove any late payment markers they have placed on people's accounts?

    Is that the whole letter? Just wondered if there was anything included about a proactive refund of historic late payment charges?

    It basically doesn't mean very much other than that a person's account which is presently in arrears will not be treated as if it is in arrears, well until the next time it goes into arrears.

    I suppose if you miss your next payment you will still be charged for late payment.

    Comment


    • #3
      Re: Lloyds arrears amnesty ?

      Bear in mind this bank is about to launch a record breaking rights issue and is on dodgy ground with Europe for its market share. Maybe they are shaping up their credit card debt book for hiving off?

      Never the less there will be alot of relieved punters out there if this is to become the MO.

      Are all clients to get this letter? (doubt it)

      What sort of arrears are they prepared to write off?

      But

      They say there is no such thing as a free lunch

      Is there a catch?
      The charges coming in to the banking industry every day will more than pay the banks total legal bill for the whole test case so why wouldn’t the Banks want to "ensure Justice at the highest level"

      Comment


      • #4
        Re: Lloyds arrears amnesty ?

        we need to make a change to condition 18.5 of your agreement. It will read "We may choose not to enforce our contractual rights against you and make this contractually binding against us by giving you notice which expressly states that we have chosen to do so under this term of the agreement. In all other cases, if we choose not to exercise rights against you, we can still do so later."

        18.5 previously was just ''if we choose not to exercise rights against you, we can still do so later''


        I suppose it makes their credit card book look much more attractive if there are fewer accounts with arrears ?


        Lloyds Banking Group - 2009 Interim Results - InvestEgate
        nice bit aboust significant impact of test case in that report
        Last edited by Amethyst; 29th October 2009, 17:19:PM.
        #staysafestayhome

        Any support I provide is offered without liability, if you are unsure please seek professional legal guidance.

        Received a Court Claim? Read >>>>> First Steps

        Comment


        • #5
          Re: Lloyds arrears amnesty ?

          They are not writing off arrears they are just changing the status of an account which may currently be in arrears to not being in arrears.

          I agree it makes them much more saleable.

          No benefit to Customer unless Lloyds are

          (a) removing any late payment markers from credit file
          (b) Automatically refunding late payments charges

          Personally if I had a credit card with Lloyds I would be telling them to go f--K themselves. I would be proud of the arrears status on my account and would wish to keep it that way. I would consider that the only reason my account was in an arrears situation would be because of the excessive unlawful and unfair charges that Lloyds had applied to the account since it was opened. A situation which they had then compounded by levying excessive rates of interest to the balance on the account.

          Comment


          • #6
            Re: Lloyds arrears amnesty ?

            Well also if no arrears then theres no passing over to DCAs, threats of court action, incessant phone calls etc, as well as benefits to credit records (if they carry it through to that which would completely amaze me I must say) and basically reduction of stress. Late payment fees is an interesting bit and I have no idea whether these are being refunded , again I'd be amazed if they were.

            Plus benefits to the bank I guess is customer feels more inclined to pay an ok account than an arrears account and it costs them less to collect on.

            Suppose until we know who is getting these letters and what theircorresponding circumstances are (maybe a couple months in arrears but paying minimum amount?) I can see it would benefit both sides, plus they look all nice for the FSA and get some poor accounts listed as okay accounts.
            #staysafestayhome

            Any support I provide is offered without liability, if you are unsure please seek professional legal guidance.

            Received a Court Claim? Read >>>>> First Steps

            Comment

            View our Terms and Conditions

            LegalBeagles Group uses cookies to enhance your browsing experience and to create a secure and effective website. By using this website, you are consenting to such use.To find out more and learn how to manage cookies please read our Cookie and Privacy Policy.

            If you would like to opt in, or out, of receiving news and marketing from LegalBeagles Group Ltd you can amend your settings at any time here.


            If you would like to cancel your registration please Contact Us. We will delete your user details on request, however, any previously posted user content will remain on the site with your username removed and 'Guest' inserted.
            Working...
            X