Lloyds transfering Current account debt to Robinson Way

[SLM75]

Hi

 

I have been directed to this group by a friend and I hope you can help me because I am worried.

I have had a current account with Lloyds for around 25 years and until recently managed the account well with no problems.

 

 

I recently came into financial difficulties and couldn't manage my overdraft repayments.

My overdraft was £3000 and I couldn't even pay the £50 interest and overdraft fee.

 

I contacted Lloyds by phone back in June 2015.

I was informed that the account would be frozen and I would receive a letter in due course.

 

I received the letter 26th June informing me that the overdraft would be removed in 60 days,

the account would be passed to recoveries and the Credit Reference Agencies would be informed

and my account be be marked as in default.

 

I kept receiving statements showing that the account was incurring no interest or charges.

I then received 2 letters in October 2015 informing me that I haven't paid anything for some time

and I must contact them to or credit the account to avoid charges.

I started paying £10 per month.

 

In November 2015 I received a statement with charges included.

I made an official complaint.

I received a response on 16th November with an apology for "their mistake" for not passing the account to Recoveries

and refund of all charges plus £50 as way of an apology.

 

A letter was received a day later dated 17th November 2015 asking for payment

but informing me that no charges will be incurred due to the "type of account".

I continued to pay £10 per month interest free and heard nothing

 

 

I received a letter dated informing me that my account had been passed to Collections (not Recoveries)

and they can assist if I am struggling.

 

I phoned on 18th February 2016 (I am aware now that phoning is not the best idea).

I gave a brief Income/Expenditure breakdown and said that I will pay £10 per month.

I was informed that I should do this until I am contacted by Recoveries in March.

 

I heard nothing until today

 

 

I received a letter dated 1st June 2016 stating

"As we haven't been able to agree a suitable repayment plan,

we've transferred your LTSB CURRENT ACCOUNT to a debt Collection Agency, Robinson Way.

 

 

We've instructed Robinson Way to arrange collection of the outstanding amount.

Please contact Robinson Way asap". Contact details were included.

 

I am upset and confused.

Why did Lloyds seem to pass me to Collections then seemingly back to mainstream bank then again to Collections?

 

Why did they never send my account to "Recoveries" which was stated back in June 2015?

 

Is transferring the account the same has selling the account on?

 

Why did they pass my account to DCA when I had a repayment plan in place, which was deemed acceptable?

 

Why have I still not been defaulted, when they said that I would be back in June 2015?

 

 

 

My Credit file entries were showing as ok until December 2015 when a "1" marker was entered

followed by a "2" in January 2016 up to a "5" in April 2016.

 

Do I have to contact the DCA or should I wait for them to contact me?

 

Can the DCA add interest/charges?

 

I have no other debt apart from a couple of Credit cards that are almost paid off and not in arrears.

 

I have no bank charges form Lloyds, so nothing to claim on that part.

 

I am a single mother with a job in a School on minimum wage (16 hours per week) term time only,

I simply can't afford to pay the balance.

 

I am really worried and would appreciate any help.

 

Thank you

Letter dated 15th February 2016 - Acount passed to collections.pdf

Letter dated 16th November 2015 following complaint then letter dated 17th November 2015.pdf

Letter dated 1st June 2016 transfer of debt to Robinson Way.pdf

Letters in October 2015 threatening interest & charges.pdf

Initial Letter dated 26th June 2015 following informing of financial difficulties.pdf

Edited June 4, 2016 by SLM75
missed a question

[renegadeimp]

Have they sold the debt or have they just hired Robbers way as a talking shop to collect?

[SLM75]

Hi Renegadeimp

 

I'm not sure. They stated that they are transfering the debt and are instructing them to arrange collection. This sounds to me that they have not sold it, but I am not sure.

[dx100uk]

read the letter

does it say our client Lloyds bank?

 

 

if so

ignore the DCA

 

 

a DCA IS NOT A BAILIFF

and have

NO SUCH LEGAL POWERS.

 

 

dx

[SLM75]

I haven't received anything from DCA yet. I have the letter from Lloyds informing me of the transfer to Robinson Way.

 

That letter does not mention anything about "client"

Edited June 4, 2016 by SLM75

[dx100uk]

not sold

so you can ignore the powerless DCA

and just to underline what I said above about DCA's

NO they cannot add anything.

 

 

have you all the statements?

 

 

if not i'd get an sar running to Lloyds to get them.

 

 

as for your other debts, I hope these are DCA free still?

 

 

dx

[SLM75]

Thank you for your reply DX100.

I have all my statements and all others are DCA free.

 

Should I continue to pay to Lloyds via internet banking?

 

Bit concerned about that because they have just closed my account completely

and worry that my payments to my account number and sort code may not reach.

 

Forgive my ignorance if the following is incorrect

 

Sounds silly but,

I accept that I owe the debt and from what I am reading,

DCA's seem to offer a reduced settlement offer.

I doubt Lloyds would offer the same.

 

 

If this was the case, my parents would help me with a reduced settlement.

Taking this into account would I be wrong to think that maybe it might be in my interest to go via DCA?

[dx100uk]

oh yes undoubtedly there are fees etc and unlawful stuff that is inflating this debt

thatswhy its important to go thru the statements

and remove and fees they have added

or work out what you actually used of the OD

rather than being forced to use it by their fees/charges always eating any income you paid into the account.

this can be historic from day one of the OD.

[SLM75]

The only fees I have ever had from Lloyds are interest form authorized overdraft interest and the monthly £5 fee for using the authorized overdraft. This was accepted by me when I applied for the overdraft, so I wouldn't think that I could remove these.

 

The only charge I received for going overdrawn was in November last year, which I got back after complaining.

 

Are you suggesting that my previous post regarding DCA offering reduced settlement is actually true?

[dx100uk]

probably but never guaranteed.

 

Lloyds don't do court

so eventually they will sell it on.

 

no harm in ringing Lloyds and stating you will not deal with a no powers dca.

you want to pay them only.

 

though of course it wont hurt you to pay thru the dca

as long as the money you pay actually goes off the debt to lloyds

[SLM75]

Thank you DX, I've suddenly perked up a little bit.

 

By "no power DCA" I'm assuming you mean sell it on completely as opposed to simply assigning one to collect on their behalf.

 

It's frustrating that they would sell a debt to a DCA for something stupid like 10%,

yet they wouldn't offer a settlement of say 50% to a debtor.

[dx100uk]

no harm in asking!!

 

 

dx

[SLM75]

Hi

 

Just received a letter today from Robinson Way. A day after Lloyds sent a letter, informing me of the transfer to Robinson Way.

 

Dear Me

 

Your account details have been passed to us by our client to act as a collection agent and we will now be acting on their behalf.

 

We offer flexible approach to repaying your account and we want to agree an affordable repayment arrangement with you, by understanding your individual circumstances.

 

If you are experiencing financial difficulty, our customer contact representatives are fully trained to assist with your current situation and have a range of options to help.

 

We will be in contact with you in the next 7 days by letter and/or phone in order to discuss your repayment options with you. In the meantime, if you want to contact us you can use any methods overleaf, call us or visit our website at. Alternatively complete attached financial statement and return to us with your payment offer.

This looks like Lloyds still own the account.

 

What right do Robway have to see my financial statement?

Can I send them an email asking for written communication only?

I have been paying Lloyds £10 a month, can I just tell Robway that I WILL be paying £10 a month, end of?

Would my CCA be with Lloyds or Robway?

 

Thank you for looking.

[dx100uk]

Hi

 

Just received a letter today from Robinson Way. A day after Lloyds sent a letter, informing me of the transfer to Robinson Way.

 

This looks like Lloyds still own the account. correct

What right do Robway have to see my financial statement? none

 

Can I send them an email asking for written communication only? yes but no need

 

I have been paying Lloyds £10 a month,

can I just tell Robway that I WILL be paying £10 a month, end of? yes but no need

 

Would my CCA be with Lloyds or Robway? bank accounts are not covered by the CCA

Thank you for looking.

 

 

ignore robbersway

continue to pay Lloyds direct.

 

 

dx

[SLM75]

Thank you Dx100.

 

I take it, that if they contact me by phone I can just say somethink like

"I have no dealings with you so don't call again"

Also don't go through security.

 

Is this correct?

 

Sorry DX I won't be able to respond straight away. I am going out to take my son to his School open day. He is going to secondary school in September.

 

Not dismissing what you are saying DX, however I would like to clear one thing up.

 

If Lloyds have transferred to Robinson Way or any company for that matter as an agent to collect "on their behalf", Can they legally do this and would I legally have to oblige.

 

I would like to simply carry on paying Lloyds directly but don't want to fall foul to the law.

[dx100uk]

Thank you Dx100.

 

I take it, that if they contact me by phone I can just say somethink like

"I have no dealings with you so don't call again"

Also don't go through security.

 

Is this correct? don't answer them at all.

Sorry DX I won't be able to respond straight away. I am going out to take my son to his School open day. He is going to secondary school in September.

 

Not dismissing what you are saying DX, however I would like to clear one thing up.

 

If Lloyds have transferred to Robinson Way or any company for that matter as an agent to collect "on their behalf",

Can they legally do this and would I legally have to oblige. - all Lloyds have done is asked rw to ask for payment.

I would like to simply carry on paying Lloyds directly but don't want to fall foul to the law.

 

 

ignore powerless dca's

they are not bailiffs

[SLM75]

Sent an automated complaint to Lloyds yesterday evening.

Dear Sir/Madam

 

I have been in financial difficulties for around 1 year now.

Lloyds are aware of this and have frozen the account.

 

 

I have been paying £10 per month for some time now.

I submitted a complaint in November 2015 (complaint reference: *******).

because the process wasn't being carried out correctly.

 

 

The account was going from Collections then back to mainstream banking then back to Collections.

Never reached "Recoveries" This was admitted in the reply to the complaint (Nov 2015)

and it was promised that the account would be sent to Recoveries.

I continued to pay £10 per month.

 

I didn't hear a thing until after 3 Months.

In February 2016, I received a letter from "Collections" still not "Recoveries". I

phoned to discuss my situation, including Income & Expenditure.

 

 

I was advised to continue to pay £10 per month until I am contacted by Recoveries in March 2016.

I received no contact until I received a letter date 1st June 2016 from Credit Operations

stating "As we haven't been able to agree suitable repayment plan, we've transferred your LTSB Current Account to a Debt Collection Agency, Robinson Way.

 

Not once have I been contacted by the Lloyds' Recoveries to to "agree a suitable repayment plan.

Not once as the promised process been adhered to.

 

I am very upset and distressed by the way that Lloyds failed to assist me with my current situation.

I feel that I have not been treated fairly.

 

Additionally, my Credit File states that my account was "ok" and up to date until December 2015.

Still after a year a default has not been placed.

I was expecting this after 6 months of arrears.

 

I have an agreement with Lloyds and will only deal with Lloyds.

I will not deal with a DCA who I have no agreement with.

 

I will continue to pay £10 per month to Lloyds using my Account Number and Sort Code.

Until I receive a response.

 

Due to my current financial circumstances and distress that I have encountered,

I ask that you kindly consider writing off the debt or consider a reduced partial settlement.

My parents have mentioned that they would assist me IF a substantila partial settlement is offered.

 

I look forward to your response.

 

 

Less than 24 hours later, I received a phone call this afternoon (recorded).

Lloyds have:

Called the account back in house.

Backdated default date from June 2016 to September 2015.

Promised to forward account to "Recoveries department", who are the only ones who can offer settlements.

Paid £50 into my non Lloyds bank account. It's already in there.

Everything discussed to be sent to me in a letter.

 

All in all I feel it's a very fair outcome at this stage. Lloyds either have a decent complaints team or they have broken some sort of rules that would land them in trouble if I took it further. I feel it's the former, unless someone can correct me,