Lloyds want to default my bank....

[Ta_2020]

Hi all,

 

I had an Lloyds bank overdraft in 2019 with the overdraft amount being £1350 maxed out by December 2019.

I had left the account alone for two/three months as the overdraft fees were basically ruining me (Adding to the £1350 overdraft),

 

i then received a letter from Lloyds asking me to phone them regarding this debt (This was January 2020).

I had phoned Lloyds and we went through an expenditure on the phone and the outcome was i was to make payment of £30 towards the debt for 6 months and then after the 6 months is up they would get in touch with me to discuss further options.

 

(There was mention in January that after the 6 months there was a possibility of a loan to pay of the remaining balance and then you make payments against the loan for however many years/months you choose.) It is worth noting that whilst i was making these payments they froze all interest on my account. 

I have made every payment since January and have gradually managed to reduce my overdraft down to £1200.

 

My problem is that the bank have phoned as it now at that stage for re-discussion,

they have asked me to go through another expenditure and i panicked and over estimated things to make it look like i had less income; not loads but i was in a deficit of -£47.

 

Due to this they said they could not allow me to take out a loan as it would only mean i was borrowing more to pay of debt which they would not allow.

It then got passed over to another team and he said that i only had two options.

 

Take a one month break with all interest etc stopped and this will allow me to seek financial advice elsewhere,

or they said they would default the payment and i can then pay the minimum i can afford but the default would stay on my credit file for 6 years.

 

He mentioned that they wouldn't take any money off me to help clear the debt as i had a deficit of -£47 and that shows i financially cannot afford to do that option.

I have looked at the effects a default can make to your credit file and it impacts it tremendously.

 

Lloyds asked me how i cover my expenses every month and i mentioned that my Grandparents help me out sometimes with cash flow.

the gentleman at Lloyd's suggested going away and asking my grandparents if they could contribute money to me to help aid in my debt.

so that he could go back to the original team(I think collections team) and say she now has this ____

 

He is due to phone me on Thursday (Tomorrow).

I can afford to contribute probably £50-£80 a month but it would mean cutting down on fuel and some other expenses.

 

Its worth noting that i have a credit card with Nationwide maxed to £1000 too and this will soon be at the stage where they charge interest and i cannot afford to clear this either. Is this worth writing to them about?

 

Is there anyone that can advise me on what to do to help me pay as little as i can and avoid the default PLEASE, any help is really REALLY appreciated.

 

Thank you all in advance.

[dx100uk]

does any income you get ...get paid into either account?

 

if so you need to open a parachute account and get it paid into a place neither company can just help themselves to your money.

 

pers i'd sTOP conversing on the phone now.

everything in writing from now on only 

 

i can't see you avoiding defaults in all these troubled times..

 

dx

 

 

 

[Ta_2020]

No I have a separate account already from the Lloyds OD and the Credit Card. 
 

do you think they would accept the higher amount of £80? Currently they think I can only offer the previous minimum of £25.

 

TIA

 

It’s also worth noting that I have a HP car on finance and I’ve seen that a default can possibly prevent me from renewing it after the remaining years? 

 

Thank you in advance.

[dx100uk]

car is fixed term loan or lease?

 

you control YOUR money and here is goes.

you do not need lloyds permission upon want you do with it.

 

take control stop pandering too them.

 

theres nothing much they can do you to you anyway!!

 

dx

 

[Ta_2020]

I believe that the car is fixed term as I can purchase it after three years Where as I believe lease cars you always have to return them to release.

 

What would you advise that please shall I take the default or suggest the payments of £80 although I think they might refuse this and just default anyway I’m not too sure but I’ve constantly made the correct payments and I’ve never missed a late payment so I’m hoping they will take the £80 as currently they think I can only offer 30

 

Please may you advise the best option?

Once my wages go in and my bills come out I’m only left with a short amount obviously that needs to go towards petrol and food so the small amount it is roughly 150 and from that £150 this to myself I’m now about to offer the bank £80 as I do not know what to do everybody I’ve spoke to has advised not to have a default on my account 

 

However currently I cannot borrow any money from anyone anyway due to my credit being in the low part of poor I just don’t know what to do and I have a phone call at 8.

 

Apologies that Is meant to say *low part of fair.

[dx100uk]

23 hours ago, dx100uk said:

does any income you get ...get paid into either account?

 

if so you need to open a parachute account and get it paid into a place neither company can just help themselves to your money.

 

pers i'd sTOP conversing on the phone now.

everything in writing from now on only 

 

i can't see you avoiding defaults in all these troubled times..

 

dx

 

 

 

^^^^^

 

 i bet .they have already defaulted you since january anyway

check your credit file.

 

dx

 

 

 

 

 

 

[Ta_2020]

No defaults as I have checked. They have actually accepted a payment of £250 up front and then every month payments of £80 for the next year and then re assess. Apparently this will reduce my OD down to 0 after w year. 
 

Thankyou you for your help. 

[dx100uk]