Please help

[anonnymous]

I had 2 accounts with my bank (TSB) 1 of which I used as my regular current account and the other was set up to pay my direct debits etc. Unfortunately I got into arrears with some of the people I paid DD to and eventually managed to pay back the arrears but it left me with an unauthorised overdraft on the account I used for DD's because the bank had honoured these DD's for some time.

Today, I logged onto my online banking to find a notice telling me that me account were no longer in use and I had to contact my branch, which I did and they told me they had passed both of my accounts to creditors and I should contact them. When I did they told me that I could not have access to the account that was in the black, and what money that was in it was now used to pay off some of the unauthorised overdraft in the other account. Also, they said I could not open another (basic) account for my wages to get paid into and that it was unlikely that another bank would since I owe money to TSB. My boyfriend has given me use of an account he no longer uses for my wages to get paid into in the meantime, but is it true I will not get another account until the arrears are paid? What can I do?

Also, I will tell you at this point that I am debt with a further 2 companies. For months I have been scared to open my mail and after what happened this morning with the bank I finally bit the bullet and opened up everything. I called the 2 companies I am in debt to and sorted out a realistic re-payment plan, but I know this has affected my credit rating also.

Continued.....

[anonnymous]

Continued....

Including the unauthorised overdraft I have �4250 that I am owe.

With regard to the account I am using to have my wages paid into and to continue paying the DD's I have managed to keep up to date with, is this illegal or is it OK because he has given consent? Also, his account is with TSB too, is it possible for this account to be changed so that it's a joint account or will that be turned down because of me and my debts?

Please don't tell me that I've been stupid etc. I most certainly know that myself and I have made a vow to NEVER get into this kind of mess again.

Thank you for your advice!

[tigerthecat]

You and hundreds of thousands of others are in debt. I'm not sure the answer to your actual question. But the best advice is from the cab who will help with all debt difficulties. I'd invest some time there if I was you. You are not the last to be in debt, best to do what you're doing now - sort it out. Good Luck :-)

[STAH]

Lloyds TSB are well within their rights to use the credit balance on one account to repay the overdrawn balance on your other account. This is called the rule of set-off whereby a credit balance on one account is used to set off against a debt on another. This to reduce the bank's exposure and potential right off.

You have been given incorrect advice by the Lloyds rep. You will be able to get another bank account - but it will be a basic account. I would leave Lloyds and start afresh with someone like NatWest, Barclays or HSBC. I work for one of these, and I know that Lloyds would be reluctant to place you onto your boyfriend's account due to your previous account conduct. Also, if you and your boyfriend have an argument, it may be awkward to get at your wages if they are sitting in his account.

If and when your credit worthiness improves, Lloyds may be reluctant to assist you as they have had difficulties with you in the past. Try another bank and attempt to build on your credit score. Another reason why I suggest you try another bank. Bank's are legally obliged now to offer basic accounts for people in positions such as yourself, and for pensioners who have their state pension mandated to a bank.

I am pleased that you have sorted out a repayment plan - this is certainly a step in the right direction! Has this included the Lloyds debt aswell? Please please please don't leave your post unopened again!

Good luck, and I hope that you are will sort this problem out and place this unfortunate event behind you!

Sound advice from tigerthecat too, but if you have sorted out a repayment plan to your creditors, I can't see how the CAB are able to assist you further.

[anonnymous]

Thank you both.

STAH - I went to another bank a few months ago as TSB were being unhelpful with me with another matter, they did a credit check and refused me an account with them, I'm not sure if this was a current account or if it was a basic account, I don't even know the difference between the two of them to be honest.

The repayment plan does include paying back the unathorised overdraft and I have set it at a manageable amount every month so that I still have enough to live on and not get into more debt. Now that this has been put in place, how long will it be until my credit score is on the up again? Is there an average amount of time? Do all my outstandind debts need to be paid in full before my score will start to climb?

When I am sitting with the manager of another bank is it best to be COMPLETELY honest about the mistakes I have made to get me to this point or skim the details, but let them know it happened? What do I say if they tell me they are to run a credit check on me (which will make my rating worse I believe?) and then tell me I can't have an account? Would it be cheeky for me to tell them that someone (you) has told me they are legally obliged to give me a basic account?

[STAH]

Hello there!

Please that I was able to help you in some way -all is not lost! To answer your question as to when will your credit report be cleared.

I recommend you to contact experian and equifax to obtain a copy of your credit reference report. They will be able to let you know the extent of your credit worthiness and report, and let you know when any adverse (if any) information will be cleared.

You have to get another account - even if it is basic. A search will be made against you, yes. Providing that you do not apply for credit again in the near future, then you should not have a problem with your creditworthiness. The bank will be able to point out if there is adverse information held against you too. If anyone declines you an account or credit, they HAVE to tell you why. Do not let them palm you off!

A basic account has a cash card for ATM withdrawals, no overdraft, no debit card. Standing orders and direct debits are allowed, and the account is to be maintained on a strict credit only basis. Compare this to your old accounts with Lloyds.

I would urge you to be upfront and honest with the bank. A banking relationship relies on trust and honesty - tell them the whole picture. They may be able to help you in the future if you approach them sooner than later. Do not leave your head in the sand! And no, you are not being cheeky by letting the bank know that they are legally obliged to accommodate you. In fact, they may not palm you off or bull-s**t you. They should note you are switched on, and you are aware of your rights!

Good luck kid,

Scott

[anonnymous]

Thank you Scott. I have well and truly learned my lesson and am going to do all I can to get myself out of this and not ever get back into it.

Thank you so much for your invaluable advice. I will make an appointment with a bank for Saturday morning. I will post on this thread to let you know how I get on.

Thanks again xxx

[anonnymous]

STAH/Scott,

I got an appointment with Abbey National this morning and I told them everything. She set up a basic account for me and I have just called up all those people that I pay DD to and updated my details with them.

After working out EXACTLY what I have to pay out every month it turns out I have a reasonable amount for me to live on every month, so I also set up a savings account and I endeavor to start putting money aside each month.

Thanks again for all of your advise, for the first time in 28 hours, my heart rate has gone back to normal !! Lesson well and truly learned!

Thanks again x

[STAH]

I am pleased that you have got a postitive resolution to this problem. I like the fact that you were sensible enough to complete an income and expenditure too - this will enable you to see EXACTLY where you money is going!

I always advise my customers at the bank who are in a similar position to yourself to do the same. It is a nice touch that you have also set up a savings account. It seems to me that you have got your head screwed on and will endeavour to sort this predicament out.

You never know, you may want to use the funds in the savings account to pay off the debt that you owe, and get your credit history back onto an even footing.

Set yourself a target and an incentive to get this sorted out asap, and see what you can do! I saved really hard for the last 2 years, and treated me and my partner to a trip to New Zealand to watch the British Lions Tour in 2005. We even had stop offs in Japan and Australia. Set your mind to it, and you will be amazed at what you can do!

Good luck!

Scottie xx

[wendieb]

Please do not put your name on your boyfriends joint account. TSB will then use his money from that account to pay off your debts as he will then be liable for your debts with TSB and his account will be sent to the collections department.

My partner and I have just gone through this so have first hand experience.

[wendieb]

Hi,

Firstly do not get involved in your partners account as Lloyds will join all the accounts together and he will become liable for your debts as well through the joint account.

I have just had this happen to me. I became a joint account holder on my partners account a few years ago. I also have a separate account in my sole name with Lloyds. I requested a new cheque book for my sole account only to be told that the request was denied because the joint account was in arrears and therefore my sole account had also been sent to the collections department even thogh my partner had made an arrangment to pay the joint account off.

They have really messed me up. So what I had to do was draw out all the money in my sole account so that they did not try to use it to pay the joint account. Luckily I had another current account that I did not use with another bank.

Be warned, if you have a joint account and sole accounts with the same bank they will make you both liable for the joint one and mess about with your sole accounts because they are all linked.

Hope you get sorted out. Good luck.