Cant reduce my balance

[ZENTRIX9]

Hi everyone,

 

 

I have a LLoyds bank Premier account.

 

 

I get charged £25 for the account, £6 for an overdraft useage fee and interest on the money that is overdrawn.

 

 

We pay around £51 per month, the balance doesnt change and hasnt changed since 02/10/2009!

 

 

we are just treading water, we have a constant balance of £-2090 and cant see a way of paying it off as we cant afford to pay anymore.

 

We have asked to change to a different account before to help us reduce the balance

but were told that until we get it down to £500 they cant do anything for us.

 

Can anybody help?

[caro]

Was there a good reason for you wanting an account costing £25 per month? Have you always benefitted from any benefits of that type of account?

[ZENTRIX9]

Hi Caro,

 

 

I opened the account when I was made redundant and had my redundancy paid out.

 

 

I was advised it was the best account for me and back then I was still one of the many that thought that banks were there to help you.

 

 

I already had insurances, breakdown and mobile phone cover etc so no benefit to me really except to line LLoyds banks pockets

[theoldrouge]

time to start a reclaim for your misold package. Reclaim the fee plus int at the rate they charge for your od

 

have a read of this http://www.dailymail.co.uk/news/article-2547073/Backlash-rip-fee-paying-bank-accounts-Thousands-customers-complain-claims-widely-mis-sold.html

 

andhave a read of the latest fca guidance http://www.fca.org.uk/firms/being-regulated/meeting-your-obligations/firm-guides/consultations/packaged-bank-accounts

 

[ZENTRIX9]

Thanks, are there any template letters on here to use to start a claim?

[theoldrouge]

a personalised letter headed Formal Complaint, explaining why and how you were misold your package account

 

is far better than any template.

 

do you spreadsheet and letter, the links above should give you the right idea

 

and post them up prior to sending, so we can check and advise if necessary.

 

5 years at £300 per year plus int at their rate should wipe your od

[theoldrouge]

FosCISheet v101.xls

[caro]

Completely agree with theoldrouge. It is quite scandalous that they refuse to let you change from this type of account in the circumstances.

[ZENTRIX9]

Ok so for the calculations do I do 3 seperate sheets,

1 for the account charge,

1 for the interest charged

and 1 for the overdraft useage fee?

 

 

Then send them all three and a total amount.

 

I am not sure of the interest they charged so do I do 8% interest?

[ZENTRIX9]

Yes Caro,

I have had to deal with other debts first

and now this one is next,

 

 

so hopefully I can wipe this one out.

 

 

It seems to be chicken and the egg syndrome.

 

 

I have just cleared the credit card and its the only one I still have with a clean bill of health

(so I intend to start using it a little to try and repair my credit history a bit if it will help?)

[caro]

How long have you had the account? Generally it's very hard to claim bank charges like the overdraft fee, but if you can demonstrate that the £25 fees and interest on it caused the OD you might stand a chance.

 

Isn't there an interest rate shown in your statement?

 

It depends how bad your credit file is if there's any point using a credit card again. Is there a reason for wanting credit in the future?

[ZENTRIX9]

Hi Caro, yes the interest rate should be on the statement I will look tomorrow, dont want to wake the dragon in bed

The fees that have been charged are more than the overdraft so would that be a basis to say that the charges caused the overdraft?

[dx100uk]

the interest rate should be detailed on the statements.

 

 

they all go on ONE SHEET

you cannot reclaim the pure interest listings.

 

 

just the account fee and the OD usage fee.

 

 

dx

[ZENTRIX9]

Ok DX so add the two together and list it as 1 monthly payment?

[caro]

You should be able to claim the interest on the charges. Show them individually (on the same sheet).

[ZENTRIX9]

Ok so put them on the sheet and repeat the date below for the 3 payments for that month

[dx100uk]

the sheet will calculate the interest the charges caused you.

 

 

no don't add the OD usage fee to the subscription charge

 

 

sadly you'll have to list them individually

 

 

dx