Tom24 v Lloyds

[Amethyst]

Hi all. Last year, I found that my wife was being royally screwed by her bank (LOADS TSB). She was so worried that she did not tell me.
When I calculated what they had been charging her I sent the letters from here but they referred us to the appeal process.

In the last couple of months I have sent a request for them to deal with my wife as a hardship case as we have now been getting bailliffs letters, and are behind with the rent which she had not paid a couple of months because the bank had been taking all her wages and any money that I had given her for household expenses etc.

Some of the money I had given her in cash had been deposited to pay the banks costs which had risen to £200 per month. This has(she has told me) has now reduced to £50 per month. I again checked all the costs (last year when I applied it was £2700). This time the total is about £4700 in charges, and she is continually getting letters for charges of £15 per day, £xxx per month etc which are all a result of the bank keeping her in debt.

We recently recieved a letter back saying that they understood our position, and would give a full response within 8 weeks (we are now 4 weeks in), or could go to the ombudsman if we are not happy with their decision.

We even faxed in the bailiffs and debt letters but they appear not to care, they have taken almost half my wifes wages in one year through charges.

What do we do now? Please help, she is getting at least 4 letters per week from the bank. This is so wrong, can anyone be of assistance?, thanks, Tom.

[Amethyst]

Re: Tom24 v Lloyds




Join Date: Mar 2007
Location: Derbyshire
Post Count: 1,018
Thanked 543 Times in 424 Posts



First of all your wife needs to leave lloyds immediately.

She needs to open a basic account with someone unconnected - like Nationwide or Natwest, or even Barclays, and start having her income paid to there, and manually(ie herself) set up new DDs/SOs from that account. If income is less than expenditure without all the charges being applied then changes need making. When she does an IE sheet we can go through this and see where any problems may lie, sort out alternative payment methods etc.

This will get her back in control, stop the charges circle, and leave Lloyds charging themselves not you.

Do not get a new overdraft. A basic account won't allow one anyway.

Leave the lloyds overdraft where it is, just stop paying in, carry on with the hardship claim.

I'll also get a letter for you to tell them the account is in dispute to try and stop them hassling you so much.

She will need to do a bit of work, sort out an income expenditure sheet and offer an AFFORDABLE monthly repayment of the overdraft in the meantim to try stop her credit rating being screwed (which can be corrected but after the test case I expect).

Do you think thats something she will do ?

[Amethyst]

Re: Tom24 v Lloyds

Heres a outline for a letter which once we have a better idea of exact circumstances we can tailor to suit.

Quote:
Under the banking code your bank should not chase you or enforce any debt which is in a valid dispute.

If a debt (overdraft) with a bank is made up of charges which you are disputing as unfair you should inform the bank of your dispute by entering your complaint.

This is just a suggestion and you are perfectly entitled to withold any payment until the outcome of the test case if your debt is outweighed by the charges complaint. This may save you having to deal with defaults being placed on your credit record, debts being passed to debt collection agents and court claims against you - all of which you can fight against, however prevention is better than cure is it not?

Quote:
Dear Sir or Madam,

ACCOUNT NUMBER: xxxxxxxxxxx

I am writing with regards to the alleged outstanding debt owing on my account. You will be aware that I consider the debt to be in dispute as the majority/whole of this sum is made up of disputed charges and interest charged thereon. I have recently moved my account to another bank as the regime of charges has forced me into severe financial difficulty.

This dispute was notified to you in a letter dated xx/xx/xxxx (copy attached) (add any other action you have taken thus far with regards your claim for charges)

In your letter dated xx/xx/xxxx you have informed me the amount outstanding on the account is £xxxx.xx . The amount I calculate you have taken in unlawful charges and interest on those charges is £xxxx.xx. In addition I am claiming from you a sum of compensatory interest equal to 8% per annum which brings the total disputed amount to £xxxx.xx .

I have no intention of reneging on any part of this account which may be legitimately incurred debt and as I understand the issues surrounding the dispute are currently pending determination in the House of Lords and with the Office of Fair Trading, as a gesture of goodwill I would like to arrange with you to keep this debt on hold until the outcome of that case. Therefore I propose that you place a hold on further charges and interest being added to the account and that you accept an interim repayment plan.

I propose I make payments to you of £xx per calendar month, the first payment is enclosed, until such time as the dispute is resolved. Once this dispute has been resolved, if in my favour, you will continue processing my complaint, and if in your favour we will review repayment arrangements for the alleged debt. To be clear I currently dispute whether this sum or any is actually owed to your company and I am simply offering a reasonable solution in the interim whilst the dispute is considered.

I would like to make you aware of The Office of Fair Trading Code of Guidance in which it states: putting pressure on debtors or third parties is considered to be oppressive This includes: Ignoring disputes about whether money is owed and refusing to freeze action if the debt is in dispute.

I therefore hope to receive your full co-operation in this matter and would like to request a written response to that effect.

Yours Sincerely



Your Name

[Amethyst]

Re: Tom24 v Lloyds

tom24
MoneySaving Newbie


Join Date: Jul 2009
Post Count: 3
Thanked 0 Times in 0 Posts



Thank you ever so much Esmerellda. I applied for a basic account for her which she is prevaricating over as she is worried because the family tax credits go into the present account. I will show her your post and impress on her the need to close the account (she does need to close it doesn't she?). We will take all your advice from here on in. Thank you again, Tom.

[Amethyst]

Re: Tom24 v Lloyds




Join Date: Mar 2007
Location: Derbyshire
Post Count: 1,018
Thanked 543 Times in 424 Posts



No you don't need to close it, and they won't let you anyway - just cancel your DDS and move your income over.

Family tax credits and benefits should just be a phone call to get them changed probably for the August one if she rings them today.

Don't tell lloyds anything just do it, sod lloyds and deal with them after you have made sure your income is safe.

[Amethyst]

Re: Tom24 v Lloyds

tom24
MoneySaving Newbie


Join Date: Jul 2009
Post Count: 3
Thanked 0 Times in 0 Posts



Thanks again.
Some people are complaing to the FSA and the FOS Esmerallda. I know this complaint is still within the 8 week reply window for them, but how is it best to proceed, above letter 1st?. I can provide details by PM if neccesary.

[Amethyst]

Re: Tom24 v Lloyds



To go through the hardship case properly - and bearing in mind this is lloyds and they are one of the worst - we need to go through the circumstances properly to give you the best chance of getting this sorted with the least distruption to you. So will need to get together a full IE sheet. We can also look at the bailiffs and other debts and see what the situation is and what your options are.

Rather than by PM which means if theres anything I miss doesnt get picked up on.

My names Amethyst over there (as per my signature) and if you can get your better half to go through things that would be great.

If Lloyds do there job properly they should offer advice pretty much to what I have said - but moving you to a basic lloyds account. Obviously this still gives them control over you so stick to going with another bank.

Lloyds will probably come back in the next few weeks saying yes your in hardship but no you wont get any money back, and then you can take it to FOS, unless we get a really decent case together - but of course that depends on your circumstances.

First priority is to get out of the circle and take back control.

[Tom24]

Re: Tom24 v Lloyds

Thanks Amethyst, wife just called and said Lloyds had already made her account a basic one 2 months ago. I work away a lot so out of the loop a bit.

[Amethyst]

Re: Tom24 v Lloyds

Moved all your posts over Have a read about the hardship forum and especially the stickys at the top of the hardship forum, then we can start going through things in a bit more detail

[Amethyst]

Re: Tom24 v Lloyds

Thanks Amethyst, wife just called and said Lloyds had already made her account a basic one 2 months ago. I work away a lot so out of the loop a bit.

Okay that probably fulfills their obligations under the waiver. I would still move to another bank if I were her.

You need to ask her what they are doing with the overdraft - have they set up a repayment plan, stopped charges etc on it ?(from what you said about £15 a day letters they havent)

(or better still ask her to come on here )

[Tom24]

Re: Tom24 v Lloyds

Will do Amethyst. Been on nights last night and need my bed now. Will read all the forum on Hardship, speak to the wife in depth about what has been/is going on, and get back here as soon as I can get more details. Thank You.

[TUTTSI]

Re: Tom24 v Lloyds

Hi Tom and a warm welcome to Legal Beagals.

Can you get this income and expenses summary completed jointly http://www.legalbeagles.info/forums/...ead.php?t=5102

This will help us to assess the situation under the FSA hardship rules.


Tuttsi

[WendyB]

Re: Tom24 v Lloyds

You need to write to them saying not to send you any more letters, you already know that you are overdrawn etc, so please stop sending letters for which you charge £15 a time for telling me something I already know. This situation is not likely to change for the forseeable future so please stop duplicating and adding further charges on. Or words to that effect.

I used to be with TSB years ago, it really used to pee me off when they sent me a letter to tell me something I was already aware of, then charged me for the privilege of doing so.

[Tom24]

Re: Tom24 v Lloyds

Hi Amethyst, my wife has filled in an income and expenditure form. Where do we go from here, thanks, Tom.

[Amethyst]

Re: Tom24 v Lloyds

Nice one Can you email me it - Amethyst@legalbeagles.info

Then I'll have a better idea, can ask any more questions and we can look at the hardship case.

The basic account is still with lloyds isnt it, so she needs to move to ummmm Natwest (or soemone else unrelated if you can work out whos related to who these days) and send that letter regarding the overdraft we wrote before, you could change this part ''I have recently moved my account to another bank as the regime of charges has forced me into severe financial difficulty.'' to ''You will be aware you have recently moved my account to a basic account as your regime of charges was forcing me into severe financial difficulty'' or similar- just amend to suit circumstances. Main thing is to try stop them continuing to charge and allow affordable repayment of the debt whilst the charges claim/dispute is ongoing.