Lloyds Bank Where to start

[Henny Maltby]

My husband and I started a business in 2005 we took out a Government backed Loan with Lloyds TSB in 2005 for 50500 the following year I took out a second loan secured personally by me and my husband for 30,000 which they added nearly 7k of PPI. (I have put in a claim for this already and am awaiting confirmation).

 

My husband resigned as a director as the business was struggling after 2 years to find another job so we were not both relying on the same income whilst I dealt with the business and the loan repayments.

 

I was 7.5 months pregnant and went to the bank to say I was struggling with making the loan repayments and would do for at least 3 months. I was about to come into some money which would allow me to pay off the second loan. I asked the bank to see me through to this period. I was told that they would and I would just need to provide them with some information and a plan of how I was going to get myself back up and running again. I did this and they then came back to me and said they could no longer support me. I went to the bank again and said that if they didn't help me through until I received this money I would have to fold my business. The bank have essentially asked that I pay the 23k off immediatly (2nd loan secured personally). I have said I would do this as soon as I could but could not afford to at the moment and before I did I would require more information in regards to these loans I took out.

 

The bank have now taken 2 months to provide me with only half of the paperwork I asked for. They have said they no longer do Governement backed loan and therefore have no information on it. In regards to the second loan we had written to our manager at the time as there had been 7k added to the loan (mis-sold PPI) which we had not been aware of. We were told at the time this was a condition of the loan, we have since been informed by the FO that this is not the case. We also believe that this loan should have never been given to us. We had only been trading for one year and were already struggling to pay debts hence the reason we asked for the loan but the bank never offered us any other means except a loan to be able to trade our way out. We have always struggled to pay this loan and in many cases had to borrow money or use inhertiance to pay it. We now have nothing left. After the 3rd year we took a loan repayment holiday for 2 years. I have asked the bank to provide me with a suitablility report and they have come back and said '

The suitability reports you refer to would be what we might call "a lending application" and Under the DPA we are usually able to provide these at a fee of £10 as you mention. Stuart has however been informed that this covers only sole traders and partnership companies and is therefore waiting for further advise on this.' Is this correct? If I were to pay back this loan then I have asked them to release me from my Personal Guarantee but they said that they will not do this as they can use this then to reclaim for the 1st Loan the Goverment backed on. It is therefore not in my interest to take the money from my parents to pay off any of the loans as they are still going to come after me. The personal Guarantee was also for 40k which is over what we took the loan out for we asked for 30k got 37k and they secured the loan for 40k can this be legal?

In the meantime I have been told by my accountant I have to stop trading as I do not want to be seen as trading insolvent. I have therefore whilst I wait for them to provide me with paperwork so I can make an informed decsion on what I wish to do lost a large contract with a company which is essentially my cash cow and have no means in which to pay the ever mounting bills by them. I am now 9 months pregnant and I have still not got any answers from the bank in regards to this matter and I am finding it extremely worrying. Without the contract I had I am not sure if I will continue to be able to trade to make the 1st loan repayments whereas if they had supported me in the first place I would have paid off the second loan and most of the overdraft and be making money for the first time since I had started this. Essentially I am not trying to get out of paying the loans but they have now cost me my business and are still asking for their money. Can this be legal?

Any help would be greatly apprecaited as I am desperate and about to have a baby and I am not sure I can cope with the stress but I can't believe the bank can treat someone like this.

[rebel11]

Hi henny

 

Welcome to CAG

 

The guys will be happy to advise as soon as they are available.

 

On your PPI claim (second loan) you need to work out on a spreadsheet Compounded Interest, so that you are claiming

the PPI Charges as well as Interest. If you send them a SAR request with £10, they will send you all the data they have,

including statements for 6 years plus. The PPI Claim should be enough cause to dispute the account.

 

http://www.consumeractiongroup.co.uk/forum/attachment.php?attachmentid=27877&d=1306452280

 

If you've been mis-sold PPI on any other financial products, it's worth claiming that back as well.

 

It does sound like they wanted to do business with you in the 'good' times without carrying out checks and

now they want to 'fold', rather then help. It's pretty much how small business are being treated at the moment.

 

You need to write a Formal Letter of Complaint, mark it as such. Explain exactly whats happened, remember

you can take the matter to the FOS, once you get a final answer. It might also be worth having a look at the

Lending Code. E-mail it to Antonio Horta-Osorio, Chief Executive, antonio.osorio@lloydsbanking.com

 

It might be worth looking at the historic lending Code as well.

 

This is the current one:- http://www.bba.org.uk/customer/the-lending-code

[Henny Maltby]

Thank you for your help I will follow all of this up.