Lloyds TSB

[steve811]

I have a long standing unsecured debt (16K) with LLoyds, which they converted to a charge on the property in 2006. Since then I have not made any payments, and played the waiting game. I believed the debt would therefore be statute barred in 2018/19, if the date of the "recognition" of the debt was the charge registration. However I note that once a CCJ has been passed (it was) there is no limit to the debt. Last week I received a letter from Lloyds reminding me of the debt and saying they are not charging interest and would accept "token payments". It goes on to say that if no payment is made they will wait until the house is sold to recover the balance from the proceeds of the sale. This week I received another letter saying they have passed on the debt to Moorcroft. I have briefly spoken o Moorcroft and told them I will only communicate in writing and I am disputing the debt. I have these grounds for dispute and would appreciate any advice!

1) The debt is actually 2 debts, a large overdraft (£3000) and an unpaid loan (£6000) which the bank "rolled up" into one debt when they presented it to the court. In my opinion that was wrong and should not have happened.
2) The massive amount of the overdraft was caused as LTSB refused to stop payment of standing orders and bills I asked them to stop (I was making arrangements to pay the bills another way) and paying these incurred charges.
3) The overdraft was massively inflated by charges which the banks are now refunding, so the charges should at least be removed from the capital.
4) Despite an offer to pay by instalments the bank refused to consider anything other than a charge on the property.
5) The loan had PPI attached which was also included in the debt , this was also unfair as I had to take PPI to get the loan and I could not have claimed on the policy!


Given the above, what is the best course of action to try and challenge the amount of the debt and either remove or reduce it? I have considered applying to have the original CCJ set aside using 1) and 2) as arguments along with the fact that we did not get the court papers for the hearing so did not know about the hearing until it was too late.

[Debt Camel]

Re: Lloyds TSB

1) The debt is actually 2 debts, a large overdraft (£3000) and an unpaid loan (£6000) which the bank "rolled up" into one debt when they presented it to the court. In my opinion that was wrong and should not have happened.

You could have challenged this at the time. But as it wouldn't have made any difference if they had got 2 CCJs rather than one, I can't see how this argument will help you now.

2) The massive amount of the overdraft was caused as LTSB refused to stop payment of standing orders and bills I asked them to stop (I was making arrangements to pay the bills another way) and paying these incurred charges.3) The overdraft was massively inflated by charges which the banks are now refunding, so the charges should at least be removed from the capital.

Have you put in a complaint to the LLoyds about these? If your complaint is upheld, any refund will be used to reduce the debt owed so you will achieve what you want.

4) Despite an offer to pay by instalments the bank refused to consider anything other than a charge on the property.

They were legally entitled to do this. You could have made payments by installments but you have chosen not to.

5) The loan had PPI attached which was also included in the debt , this was also unfair as I had to take PPI to get the loan and I could not have claimed on the policy!

Then put in a PPI complaint. Any money refunded will be deducted from the debt.

I have considered applying to have the original CCJ set aside using 1) and 2) as arguments along with the fact that we did not get the court papers for the hearing so did not know about the hearing until it was too late.

I don't think you have any chance. You may not have had the court papers at the time, but you clearly knew about the debt before the charge was added and any set aside should have been dealt with then.

I suggest you proceed with overdraft and PPI complaints. Do not use a claims management firm - otherwise if you win and the refunds are set off against the charge, you will still have to pay the claims management firms high charges.

[steve811]

Re: Lloyds TSB

You could have challenged this at the time. But as it wouldn't have made any difference if they had got 2 CCJs rather than one, I can't see how this argument will help you now.

My point is that the two should have been dealt with separately as there could have been two separate defences.

Have you put in a complaint to the LLoyds about these? If your complaint is upheld, any refund will be used to reduce the debt owed so you will achieve what you want.

I am about to, have drafted a SAR as there might be information I can use to further the complaint.


Then put in a PPI complaint. Any money refunded will be deducted from the debt.

I have done, should come to around £2000 by my reckoning.
I don't think you have any chance. You may not have had the court papers at the time, but you clearly knew about the debt before the charge was added and any set aside should have been dealt with then.

I suggest you proceed with overdraft and PPI complaints. Do not use a claims management firm - otherwise if you win and the refunds are set off against the charge, you will still have to pay the claims management firms high charges.

I don't intend using any claims management firms, have done this myself before and know how it goes so will see if I can claim back both the PPI and the bank charges.