Lloyds TSB spiralling charges increasing overdraft advice please

[purple25]

Hi there, am a newbie so please forgive if I have posted incorrectly

 

I would really appreciate some advice regarding my situation, which I will explain below

 

My husband lost my job in May and immediately contacted Lloyds TSB to see if they could increase the overdraft at all as we were due to incur bank charges for going over the overdraft the previous month. They agreed to increase to around £600. We were told by the bank, this was not to help us out out, but was to cover the imminent charges and also to cover more charges that were due the following month! We felt we had no choice but to agree and the condition was the overdraft was to be reduced by £24 a month until it was back to the original £200 overdraft.

 

Unfortunately we had trouble with JSA (another story), Husband got a new job, then was laid off again! He now have a new job as of two weeks ago but the account has not had regular income payments since May and with their reductions of the overdraft the account has incurred charges which have been unpaid, plus another reduction and more charges. It now stands that the agreed overdraft is showing as £526.00, but the account is £832.97 overdrawn. It is due to continue to be reduced, but as it is now £306.97 over the overdraft, we are incurring more charges daily.

 

We are having his new wages paid into another account, so Lloyds don't swallow it all up. But I really would like to stop the charges to stop it spiralling out of control and we could begin paying it off.

 

I really don't know where to start with this and any advice would be really appreciated. Can I ask for the account to be frozen and no more charges applied? Can I refuse to pay some of the amount that is their charges?

 

Thank you in advance

[ims21]

Hi purple

 

Post #3 here might be of help to you

 

http://www.consumeractiongroup.co.uk/forum/showthread.php?319334-hardship-claim&p=3549789#post3549789

 

Regards

 

ims

[purple25]

Thank you Ims

Looks like a good place for me to start, do you know if I make a complaint about the charges and request for them to be returned under hardship does this prevent them from continuing with daily charges while it is being looked into?

 

Thanks again purple

[ims21]

Hi

 

In your letter explaining your circumstances, ask them to freeze charges while they are sorting the matter out. See what they say.

 

Regards

 

ims

[purple25]

Hi Ims

Thanks for the advice I have drafted a letter for the bank asking for the charges back since partner lost job and freezing of further charges, adapted a template from martin lewis website and it is posted below,

wondered if you or anyone else would have a quick read to see if it sounds OK, worried I dont want to be quoting statutes etc that are not relevant.

Any advice or changes welcome,

Thank you in advance

Purple

 

 

Dear Sir/Madam

 

I am writing to request that you repay all the charges in relation to direct debits, unauthorised overdrafts and standing orders that have been applied to my account from 3rd May 2011.

 

By issuing me with these charges I feel that you have broken the FSA’s regulatory principle to ‘pay due regard to the interests of its customers and treat them fairly’. I am also claiming a refund of the fees because you have failed to treat me in a sympathetic and reasonable manner, despite you being made fully aware in April 2011 that I had become unemployed and am in financial hardship.

 

I believe the fact that I have been incurring bank charges goes contrary to the aims of the Lending Code (Section 9) and Banking Conduct of Business Sourcebook (section 5.1.4 ‘in particular, a firm should deal fairly with a banking customer whom it has reason to believe is in financial difficulty’), and previously was contrary to the Banking Code. My personal situation has been affected by the charges leaving me in considerable financial hardship in the following ways:




I lost my job in April 2011 and I went into my branch to discuss my options with a member of staff. The branch agreed to extend my overdraft temporarily to cover bank charges. I was informed that the overdraft was temporary and would decrease monthly until it was back to the original £200 agreed limit. I do not believe I was treated in a sympathetic or reasonable manner, despite being willing to come to you to explain the loss of my job and decrease in income. The overdraft was extended for the banks benefit despite my being a long-standing customer, but as my financial situation was desperate I had no choice but to agree to the terms. Since that time the agreed overdraft limit has decreased each month, however continued charges have caused the account to exceed the overdraft limit and the account debt is increasing.

 

As you can see from my account I did undertake some temporary work from the beginning of June to the beginning of July, however following a substantial drop in income I was struggling to pay for basic necessities and meet loan and car repayments, the continued charges throughout this period and since this time have contributed to making my financial hardship situation worse.

 

My partner is a full-time student and I have two children to support, we are struggling to make loan repayments, have returned our car to the finance company and are struggling to pay for basic necessities such as food and utilities. As you can see from my account we have had various payments returned and I was forced to loan money to cover food and bills, which I am struggling to repay. It is not possible to break free of the charges you continue to apply to my account, because new fees are being charged for being over the agreed overdraft, a situation which has occurred as a result of your charges taking me over the overdraft limit.

 

I would like to reiterate that your continued charges have made my financial situation worse and I request that given my financial situation, you refrain from continuing to apply charges to my account and request that you refund to me all charges applied to my account from 3rd May 2011. The charges total £350.00 and I ask that you repay me the full amount. I have attached a full schedule of the charges with this document. Stopping further charges and the refund of said charges will bring the account back within the account limit.

 

I look forward to a full response to this letter within 14 days and if I do not receive a satisfactory response I intend to pursue my complaint to the Financial Ombudsman Service at the earliest opportunity.

[ims21]

Hi

 

Sounds good to me

 

Lets see what they say

 

Regards

 

ims

[purple25]

Hi Ims thank you so much

I will let you know what they say

Fingers crossed