Repaying A Lloyds TSB Overdraft

[dazedndconfussed]

Hello all

 

I had a few bills that needed to be paid so did something a bit stupid - I used an unauthorised overdraft on my Lloyds TSB account.

I did try asking them to authorise a overdraft but they refused the application so it was either that or go down the route of a Pay Day loan and thought it was a lesser evil of the two.

 

The trouble is, I'm not in the position to pay it all back in one go so looking for advice if it would be possible to get them to freeze interest and charges and pay them back over the next 6 months? (amount owed is about £800)

 

The other issue is that I have two accounts with Lloyds - this one and my main account which is used for all my direct debits, wages etc and that has a overdraft of £2500 and is maxed at the moment and rely on that - would me trying to set up a payment plan on the other account affect this?

 

Thanks for any help

[BRIGADIER2JCS]

It may be worth you contacting your branch and ask to discuss the matter with a senior advisor/manager, but you

would be well advised to set upa ''parachute account'' with a bank outside the Lloyds group so income can be paid

into it, as Lloyds could freeze accounts at this stage.

[dazedndconfussed]

Thanks for the reply Brigadier - my credit rating isn't so great so dont think anyone would let me open an account.

[Old Cogger]

they will but just a Basic One/

[Conniff]

The Coop and Post Office are ones to look at. I wouldn't do much talking to them until I had somewhere else for my wages to be paid into.

 

So they said no to an authorised overdraft but gave you the money anyway. Let that be their problem, after you asked and they said no, they paid bills so they can double the interest.

Once you have somewhere else for your pay to go, you can tell them that they refused an overdraft but released funds for payment when they should have refused.

I wouldn't pay them back a single penny interest on this 'forced high interest loan'. Concentrate on the authorised one and clear that.

 

Remember, it's a bank and their sole purpose in life is to rip you off.

Edited March 17, 2013 by Conniff

[dazedndconfussed]

Yeah, they did let the money leave the account after refusing the overdraft but it is via PayPal and their 'instant bank' transfer. I thought it was instant but apparently they don't debit funds from my Lloyds account for 5-7 working days and poor money management meant I thought I had more in that account then I actually did.

 

I knew there was a few hundred in there and was using that for some very important bills then consciously made a few more payments knowing this would make me overdrawn but saw it less as an evil then getting some PDL - it seems like I was massively wrong.

 

The transfer(s) have started being debited now and it seems I underestimated the amount used because of the delay - the account is now overdrawn and is likely to end at about £1500 unauthorised.

 

Their charges don't really make any sense to me - is anyone able to tell me how much this stupidity is going to cost me (besides my sanity, overdraft on my other account, and my account that is)

[Conniff]

How much is it going to cost? That depends on if you open a parachute account or not. If you don't, then probably as much as the say and as much as they think they can rob from you.

 

If you have another account elsewhere that is accepting your wages or any other amounts that are paid to you, then the amount is open for discussion with you having a big say in how much you want to pay.

 

It doesn't who it was drawing the money, when paypal slapped in their request, it should have been declined as there were no funds available and you couldn't overdraw on the banks instructions.

[dazedndconfussed]

Well, I've just applied for a current account with Natwest and although it said they could offer me the account I needed to bring in some ID to branch to complete my application (don't have a drivers licence or Passport)

 

I will take the ID in on my lunch break - not sure if they have done a credit check yet and it will be okay to open the account once they have the ID or if completing the application means they are yet to do the credit check and will only do it after they have my ID .

 

Fingers crossed anyway

[dazedndconfussed]

Well, I managed to open a current account with Natwest.

 

However, despite being debited from my account for a couple of days, it seems that Lloyds have returned the DD to PayPal now. I think this is good news as I only have to pay the returned DD fees as opposed to the extortionate unauthorised overdraft fees for being over drawn for over 10 days (I assume this is the case although not 100% sure).

 

So, I guess this means that my PayPal balance is going to go into a massive negative and I have to wait until they get in contact so I can arrange to pay them back....right?