Reclaiming charges on Lloyds Graduate account

[fairhead]

Hi members,

 

I have recently received a final response from Lloyds about a huge number of charges applied to my graduate account which ultimately lead to it being defaulted and closed.

 

Basically in 2012-13 after I graduated, I fell in to quite severe financial difficulty and became reliant on credit to get by. My graduate overdraft of £2000 was usually maxed and I started using payday loans even after I lost my job (I know, different story).

 

I requested all my statements from Lloyds to see how much they had charged me in fees and interest etc before I was defaulted. The total came to over £700 in the 12-18 months of difficulty and this sum is mostly made up of unauthorised overdraft fees and interest on top of them.

 

In Lloyds response they simply say the charges were 'applied correctly' and invite me to call their recoveries department to arrange repayment. Even though I'm still unemployed, I told them I'd be happy to begin a payment plan if they removed these charges, but they're having none of it.

 

I want to take this to the FOS but I've had such mixed experiences with them in the past (loads of complaints re payday loans), and I don't know the best way to go about it. Is it possible to still reclaim charges such as these or will the FOS rubber stamp Lloyds response? It seems ridiculous that over 40% of my debt to them is made up of overdraft charges on what was supposed to be an interest free graduate account!

 

If anyone has any suggestions of how to approach the FOS with this or any success stories, please let me know!

 

Thanks

[fairhead]

Hi members,

 

I have recently received a final response from Lloyds about a huge number of charges applied to my graduate account which ultimately lead to it being defaulted and closed.

 

in 2012-13 after I graduated,

I fell in to quite severe financial difficulty and became reliant on credit to get by.

My graduate overdraft of £2000 was usually maxed and I started using payday loans

even after I lost my job (I know, different story).

 

I requested all my statements from Lloyds to see how much they had charged me in fees and interest etc before I was defaulted.

The total came to over £700 in the 12-18 months of difficulty

and this sum is mostly made up of unauthorised overdraft fees and interest on top of them.

 

In Lloyds response they simply say the charges were 'applied correctly'

and invite me to call their recoveries department to arrange repayment.

Even though I'm still unemployed, I told them I'd be happy to begin a payment plan if they removed these charges,

but they're having none of it.

 

I want to take this to the fos but I've had such mixed experiences with them in the past (loads of complaints re payday loans),

and I don't know the best way to go about it.

 

 

Is it possible to still reclaim charges such as these or will the FOS rubber stamp Lloyds response?

It seems ridiculous that over 40% of my debt to them is made up of overdraft charges

on what was supposed to be an interest free graduate account!

 

If anyone has any suggestions of how to approach the FOS with this or any success stories, please let me know!

 

Thanks

[dx100uk]

FOS will not help on bank charges.

 

 

if you are not currently using Lloyds at all

pers i'd let it run..

they'll sell it on I bet.

 

 

should they [the DCA] be stupid enough to do court

then the matter of the debt being all charges? will play a roll then.

[Guest]

maybe see if can get any joy v the paydayers re any irresponsible lending?

[fairhead]

Do the FOS never uphold these types of cases any more? Or is it possible but rare?

 

I don't use Lloyds any more, had to open a 'safe' basic account elsewhere.

It's been over 2 years since they defaulted it and it's already been with 4 different DCAs

so I reckon it's due to be sold on soon I guess.

 

 

I owe around £1800, but about £700 of that is made up of charges and interest added on top as well.

So probably half the amount due is the banks own charges on what was supposed to be an interest-free graduate account.

 

 

Annoys me how an account designed to financially support graduates can actually be used to exploit and fleece graduates when they inevitably fail to pay back the overdraft in full on demand.

If/when it is sold on, is it easy enough to defend against overdraft claims?

 

Re the payday loans fiasco, I'm well over the worst of that.

Out of about 20 loans with different lenders,

I've had a number written off, refunded and compensated for etc via the FOS

and I'm down to the last 3 stubborn ones.

[maroondevo52]

Hi,

 

This is what the FOS say... in keeping with our usual approach to complaints that are referred to us, we will review each case individually - to see whether there are any one-off circumstances that may apply. For example, we would expect current-account providers to deal positively and sympathetically with a consumer in financial hardship - including where bank charges had added to their difficulties.

 

If you are in genuine financial hardship, this does not affect the legality of the charges. But it is relevant to how your bank or building society treats the amount you owe. Give them the necessary information about your financial circumstances to enable them to consider your situation fully.

 

If your bank or building society agrees that you are experiencing financial hardship, they should suggest an appropriate settlement. This may or may not involve reducing the amount you owe - depending on the circumstances.

 

If you're not happy with your bank or building society's response to an official complaint, we can look to see if we are able to help.