can lloyds merge my bank loan and my overdraft into a new consolidated loan without my permission?

[Wato]

I'v been going back and forth with lloyds for what seems like years now, I had a Loan with them and a bank account,Fell into hard times and ended up falling well behind and ended up with 2 defaults on my credit file for the loan and my bank account.

 

Lloyds merged my bank loan and my overdraft into a new consolidated loan without my permission and are now chasing me for the combined total, my question is can they legally do this as I never signed anything and didnt agree to it.

 

According to lloyds they can do this without my permission but Im just wondering if anyone on here can shed some light on the situation

 

many thanks

 

wato

[rebel11]

HI wato

 

I don't think they can.

You need to go into your local branch pick up a set of Terms and Conditions, see what it says in there. First thing to do is to send the a SAR Request with £10, they have 40 days to send you all the data they have on all your accounts. Depending on your finding, you can make a complaint to the FOS with facts.

[Bazooka Boo]

My view is that they can do whatever they want, but as we now own 43% of Lloyds banking group they shouldn't be throwing their weight around!

 

If they have merged an overdraft with a loan then did you sign for this new account?

 

If as I strongly doubt you did, then they won't have a leg to stand on IMO. I would be entertaining and exhausting their complaints procedure before escalating it to the FOS for investigation.

[hermit]

Lloyds did this to me in 2005, they combined two loans and a overdraft with a consolidation loan, I got a letter telling me they had done it and to sign and return. To be honest, I can't now say for sure if I did sign and return, however I noticed today that the new loan included PPI at almost £2000, despite the fact they knew I was in major financial problems at the time and struggling with debt and work.

[Bazooka Boo]

hermit, have you got your own post?? You will be able to reclaim ALL of the PPI including interest of this new account they forced you to have.

[hermit]

Hi BB, I haven't on this yet. I have sent them the questionnaire recorded today, for three loan accounts going back to 2002, so fingers crossed will receive a few nice cheques from them.

[Wato]

Hi All,

 

Its been a while since I updated this but this is where i am at,

 

I sent lloyds the SAR over a year ago and when all of it come through, all it had in it was all my statements for the bank account and the loan, There was no defaults notice letters and no letter about consolidating the two accounts together,to be honest iv just sat on this but now 1st credit are sniffing about and they have really boiled my **** with there underhand tactics, so it got me motivated to sort this out once and for all

 

On my credit file it is still showing up as 2 separate accounts:

 

lloyds tsb current account default date 16/04/08

lloyds loan default date 16/04/08

 

apparently it was handed over to 1st credit on the 6/8/12 and they to have placed 2 new defaults on my credit file but with different original default dates

 

1ST CREDIT LIMITED Current Account Default 21/04/2008

1ST CREDIT LIMITED Loan Default 21/04/2008

 

surely i cant have to defaults for the same thing on my credit file? and also how can there be discrepencies on the orignal deafult date if they are the same accounts?

 

I contacted credit expert about this and this is their response:

 

"The entry recorded by Lloyds TSB shows the name of the company that the debt was originally owed to. The second entry recorded by 1st Credit Limited shows that the debt has now been sold to another company to collect.

 

Although the debt is now being recorded twice, only the entry recorded by the debt collection agency will have an effect on your credit rating.

 

Both entries will be retained on your credit report for six years from the default date."

 

This seems like nonsense to me??

 

Im really not sure what to do next I'm getting separate letters from 1st credit one for the bank account and one for the loan which would indicate they are treating it as 2 separate accounts,after reading many posts on the forum I'm not sure if a cca will work as it is for a bank account and a loan.

 

any help will be appreciated

 

cheers Wato

[Bazooka Boo]

If the account has been flogged off to a DCA then the entry should have their name alongside it.

 

Your right in that there shouldn't be two entries for the same debt on your file, CRA's really grind me, they are as corrupt as the DCA's.

[Bandit127]

I had exactly the same from HSBC. They are being reported on my CRA file separately, but collected under one account number by the DCA they sold it on to - and this references the overdraft account.

 

Said DCA are outstanding on my CCA request for this "debt" and have been since June.

 

I think HSBC used the "right to set off" to combine the accounts - essentially they paid the loan off by increasing my overdraft by the loan amount. However, they denied me my rights under the CCA for that sum of money by doing so.

 

I have only one entry for each original debt under the DCAs name on my CRA file though - unlike you.

[Wato]

after the email response from credit expert I sent one saying:

 

"I am very confused by response, You say that only the 1st credit defaults

will affect my credit rating but this is wrong,at the moment there are 4

defaults with high value amounts for just 2 accounts, and as the old Lloyds

defaults still have a default balance against them and does not say satisfied

or settled anyone looking at my account will think that i owe a lot more than

i actually do,also there is nothing to link these accounts together they are

entirely separate entries on my file and finally can you explain how the

defaults from the original Lloyds date (16/04/08) are different from the

newer 1st credit default date (21/4/08) if they are for the same account

which they are then surely these should be exactly that same."

 

I will await what there response is and let you know or is there something else i should be doing?

 

cheers Wato