£15k debts - Settlements offers

[the_freedom_trail]

Thanks TFT

 

In answer to your questions:

 

It's an unsecured loan - that's good as nothing is immediately at risk.

The original loan was for £12,000 pounds

The loan was taken out around 2001 or 2002 (it was supposed to be a 5 year loan!) - this is also good, Lloyds will be required to provide a valid CCA (consumer credit agreement) in court if they wanted to enforce this debt. There is a chance that their copy might have vanished after 8 years. Even if they do have it, there is a chance that it might be inacurate and therefore unenforceable.

Not sure if I have the original loan agreement

There was PPI (and funnily enough, I've just been made redundant, so it could finally prove useful) - I understand that the PPI doesn't cover your area of employment. I would therefore base a PPI reclaim on the argument that it was mis-sold to you.

 

I can't remember if I've received a letter threatening to default me, but I haven't received any letters at all from Lloyds this side of the New Year.

 

As for Lloyds acting unlawfully, I was told it wouldn't be possible for me to sign the loan agreement at home, which removed my cooling off cancellation rights - Not sure about this, will need to look in to it.

 

The bank repeatedly promised to put me on a repayment plan if I met the payment plan for 6 consecutive months, but this never materialised - wouldn't mean much in a court case between you and the bank but would matter in an FOS complaint.

 

And I'm sure I wouldn't have taken out the insurance had I been told it wouldn't cover me for the profession I was in at the time (telesales).

 

The recorded message said that the debt recovery dept would be in touch in the next few days. I'll let you know what the letter says when I receive it - unless the message said that they will write to you, expect them to probably call you.

 

Jeff

 

Ok Jeff,

 

First of all, you are in a situation of default on your Lloyds loan which means that they will try and pull the money from somewhere else. For example they have a right to offset negative balances with money in other accounts within the Lloyds Banking Group that have credit balances. Basically, make sure that you haven't got any other Halifax or Lloyds accounts with money in.

 

The next step I would take is to send a CCA request to Lloyds to provide the original executed credit agreement for the loan. If they don't provide it then they cannot legally enforce the loan until it does turn up (if ever). If they do provide it, we can start looking at it and picking through any problems which might make it unenforceable. At the same time you will need to request a statement of account. To find the template for the letter follow this link (it is letter N you need to use and you will need to send a £1 postal order).

 

http://www.consumeractiongroup.co.uk/forum/general-debt-issues/20758-creditors-dcas-letter-templates.html

 

Remember, don't sign the letter and use a postal order. You need to make sure that you don't provide your signature to Lloyds in case it magically appears on a previously unsigned agreement.

 

When you have got the info back from Lloyds we should know where you stand in terms of how much you can reclaim in PPI and default charges and interest. As you have been paying on the loan for such a long time I am assuming the balance is pretty low now? If so, you might find that the PPI and the charges are greater than the balance of the loan which means a few quid in your pocket.

 

At present the options are pretty much this:

 

- Lloyds cannot find the CCA so therefore the debt does not disapear but cannot be legally enforced. Could allow you to make a full and final settlement offer.

- Lloyds can find the CCA but there are problems with it - same outcome as above possible but not as easy or clear cut.

- Lloyds can find the CCA and it is sound - you need to write to them explaining your financial hardship, asking them to freeze interest and making an offer of repayment.

 

In each of the above cases, you can reclaim your PPI and default charges and interest.

 

I must really point out that if a debt becomes legally unenforceable it does not mean that the debt disapears. Because it still exists Lloyds can still report negative and damaging information to the credit agencies.

 

Best Regards,

 

TFT

[JeffW]

Thanks TFT - I appreciate your advice.

 

I have a current account with Lloyds, but I stopped paying money into it ages ago, in case Lloyds decided to help themselves to my bank balance.

 

I'll send off an unsigned CCA request - thanks for the tip. Is there a template in the forum?

 

You'd think the loan would be almost paid off by now, but because of Lloyd's terrible rate of interest (and the fact that I had to reduce my monthly payments due to changes in my financial circumstances), I was barely covering the interest! This is part of the reason I chose to play hard ball with Lloyds - they were unwilling to be reasonable and meet me half way.

 

Jeff

 

Ok Jeff,

 

First of all, you are in a situation of default on your Lloyds loan which means that they will try and pull the money from somewhere else. For example they have a right to offset negative balances with money in other accounts within the Lloyds Banking Group that have credit balances. Basically, make sure that you haven't got any other Halifax or Lloyds accounts with money in.

 

The next step I would take is to send a CCA request to Lloyds to provide the original executed credit agreement for the loan. If they don't provide it then they cannot legally enforce the loan until it does turn up (if ever). If they do provide it, we can start looking at it and picking through any problems which might make it unenforceable. At the same time you will need to request a statement of account. To find the template for the letter follow this link (it is letter N you need to use and you will need to send a £1 postal order).

 

http://www.consumeractiongroup.co.uk/forum/general-debt-issues/20758-creditors-dcas-letter-templates.html

 

Remember, don't sign the letter and use a postal order. You need to make sure that you don't provide your signature to Lloyds in case it magically appears on a previously unsigned agreement.

 

When you have got the info back from Lloyds we should know where you stand in terms of how much you can reclaim in PPI and default charges and interest. As you have been paying on the loan for such a long time I am assuming the balance is pretty low now? If so, you might find that the PPI and the charges are greater than the balance of the loan which means a few quid in your pocket.

 

At present the options are pretty much this:

 

- Lloyds cannot find the CCA so therefore the debt does not disapear but cannot be legally enforced. Could allow you to make a full and final settlement offer.

- Lloyds can find the CCA but there are problems with it - same outcome as above possible but not as easy or clear cut.

- Lloyds can find the CCA and it is sound - you need to write to them explaining your financial hardship, asking them to freeze interest and making an offer of repayment.

 

In each of the above cases, you can reclaim your PPI and default charges and interest.

 

I must really point out that if a debt becomes legally unenforceable it does not mean that the debt disapears. Because it still exists Lloyds can still report negative and damaging information to the credit agencies.

 

Best Regards,

 

TFT

[JeffW]

PS Just had an idea - I might sign the CCA request letter using a bogus signature...

 

Jeff

 

Thanks TFT - I appreciate your advice.

 

I have a current account with Lloyds, but I stopped paying money into it ages ago, in case Lloyds decided to help themselves to my bank balance.

 

I'll send off an unsigned CCA request - thanks for the tip. Is there a template in the forum?

 

You'd think the loan would be almost paid off by now, but because of Lloyd's terrible rate of interest (and the fact that I had to reduce my monthly payments due to changes in my financial circumstances), I was barely covering the interest! This is part of the reason I chose to play hard ball with Lloyds - they were unwilling to be reasonable and meet me half way.

 

Jeff

[the_freedom_trail]

Hi Jeff,

 

This is the link you need for the CCA request template Creditors and DCAs - Letter Templates & Budget Planner When you get on the page you need to scroll down to find letter N which is the one you need to use.

 

I would really stick with leaving the letter unsigned. Also, don't forget your £1 postal order to cover their cost. They have 12 + 2 days to provide you with a signed original executed copy of the credit agreement. After this time they are in default and cannot take any legal action to recover the debt till they produce the credit agreement.

 

I will have a look for the Lloyds customer contact centre address.

 

Best Regards,

 

TFT

[JeffW]

Thanks TFT - much appreciated.

 

Jeff

 

Hi Jeff,

 

This is the link you need for the CCA request template Creditors and DCAs - Letter Templates & Budget Planner When you get on the page you need to scroll down to find letter N which is the one you need to use.

 

I would really stick with leaving the letter unsigned. Also, don't forget your £1 postal order to cover their cost. They have 12 + 2 days to provide you with a signed original executed copy of the credit agreement. After this time they are in default and cannot take any legal action to recover the debt till they produce the credit agreement.

 

I will have a look for the Lloyds customer contact centre address.

 

Best Regards,

 

TFT

[the_freedom_trail]

Hi Jeff,

 

This is the address you need to send the letter to:

 

Customer Care

Lloyds TSB

125 Colmore Row

Birmingham

B3 3SF

 

Remember to keep us updated so that we can continue to assist you.

 

Best Regards,

 

TFT

[JeffW]

Thanks TFT

 

I've now heard back from Lloyds TSB. They have sent me 'a copy of the reconstituted version of your executed agreement, a copy of your current terms and conditions, and a signed statement of your account' .

 

They add that 'Having satisfied our obligation under section 78, the agreement you have with us is fully enforceable'. Are they right?

 

Thanks

 

Jeff

 

Hi Jeff,

 

This is the address you need to send the letter to:

 

Customer Care

Lloyds TSB

125 Colmore Row

Birmingham

B3 3SF

 

Remember to keep us updated so that we can continue to assist you.

 

Best Regards,

 

TFT

[JeffW]

PS I've just realised they have sent me information relating to my credit card, not my loan!

 

I've emailed them to ask that they send me the information I actually requested (and I've attached a copy of the letter).

 

Jeff

 

Thanks TFT

 

I've now heard back from Lloyds TSB. They have sent me 'a copy of the reconstituted version of your executed agreement, a copy of your current terms and conditions, and a signed statement of your account' .

 

They add that 'Having satisfied our obligation under section 78, the agreement you have with us is fully enforceable'. Are they right?

 

Thanks

 

Jeff

[JeffW]

Hi

 

My debts with Lloyds TSB (which come to about 15K) are currently with their collection offices in Brighton, and are not accumulating any interest. I'm paying back about 35 pounds a month, and will continue to do so indefinitely.

 

If in the future I'm in a position to make a lump sum repayment, what's the minimum that they'd be likely to accept? And would they be likely to wipe my slate clean with the credit reference agencies, and remove my default, as a condition of the arrangement?

 

Thanks in advance.

 

Jeff

[JeffW]

I wrote to Lloyds a while back to ask for a copy of the Consumer Credit Agreement of my credit card, and they've sent me a copy of my 'Asset Application Form and Agreement'.

 

Is this the same as a Consumer Credit Agreement?

 

Thanks

 

Jeff

[dx100uk]

poss could be if it holds all the necessary info inc a sig

 

scan the required letters/agreements/sheets

remove all pers info inc barcodes etc but leave all figures and dates.

goto one of the many free online pdf converter websites

convert the image to pdf format.

open a new msg box here

hit go advanced below the msg box

hit manage attachments below that box

hit the add files button on the top right

hit select files, navigate to your file on your pc

hit upload files

NB:you can set where it goes in the post by hitting insert inline.

the hit reply button

 

dx

[landy_alert]

Hi Jeff,

 

Sorry nobody has responded till now!

 

LTSB are (as I'm sure you've discovered) notoriously difficult to deal with. To give you an idea of just how difficult, I have a loan which is being collected by one of LTSB's agents. They wrote totally unprompted offering me a very good reduced settlement deal, then completely ignored all my subsequent attempts to reach a satisfactory agreement.

 

I did find this general guide to what a creditor will accept by way of a F&F settlement on another site (MSE I think) -

 

'Debt still with Original Creditor - no default - 90% or more of outstanding balance

Debt still with Original Creditor - with default - 75% or more of outstanding balance

Debt with 'in house' debt collectors of Original Creditor - 60% or more of outstanding balance

Debt with external DCA but still owned by Original Creditor - 40% or more of outstanding balance

Debt purchased by external DCA - 25% or more of outstanding balance'

 

I'm not sure of the original source of this info though.............but personally I have had offers of repaying as much as 30% and as little as 10% of the outstanding balance where the debt has been sold on - not LTSB though!

 

Hope this helps,

 

Landy x

[JeffW]

Thanks Landy

 

Do you know off hand whether Lloyds ever agree to remove a default as part of the settlement?

 

If they don't, then I'll just continue with my current arrangement, as interest has been frozen, and I'm paying back just £35 a month (with something like 14K outstanding!).

 

Jeff

 

[landy_alert]

Hi Jeff,

 

I'm not sure about that, but to be honest I doubt it - maybe as you say in your case it is best to carry on as you are as they have frozen the interest. May be worth getting other opinions though.

 

Landy x

[Mydogsawestie]

They may even write to you themselves in the future offering a settlement but if not and they sell it to a debt collection agency, you may have more bargaining power as they have probably bought the debt for between 6p to 15p in the £. Enjoy the interest free loan in the meantime

There's a template letter and more info on full & finals here should you be interested:

National Debtline England & Wales | Debt Advice | Factsheet 24 Full And Final Settlement Offers

[JeffW]

I am currently heavily overdrawn in the account that my wages gets paid into. My concern is that, when my wages get paid at the end of the month, putting my back in the black (just!), the bank could decide to pull my overdraft facility, leaving me high and dry!

 

If they wanted to reduce my overdraft limit (or remove the facility), would they need to give me written notice first, and if so would they be able to stop me withdrawing money during the notice period?

 

Thanks

 

Jeff

[johnvernon74]

If you are outwit the terms and conditions of the facility, then yes they can withdraw with no notice period and they do. Your options are 1. Discuss now with bank and get undertaking in writing that they won't withdraw, and get a repayment plan in place. 2. Set up new account elsewhere or have wages paid into someone else's account (family/friend) - then deal with your overdraft on your terms.

 

If you have difficulty opening a bank account Coop offer a basic account as well as Cashplus

[JeffW]

Thanks John

 

Jeff

[Simon Reading]

Sorry to Hijack the thread but I have the same worry about my account with natwest. I'm currently on a account that has no overdraft charges (A graduate account) would they just be able to pull this from under me too?