Lloyds Tsb are rejecting all IVA's ?

[k46]

Hi we owe most of our money to Lloyds Tsb and have been told that at the moment they are rejecting all IVA's is this the case?? Many thanks

[aguise]

Hi there and welcome to the forum. I am not a technical expert but I have not seen this said.

Ang

[MelanieGiles]

Certainly not - I find them one of the most supportive creditors so long as the right proposal is placed in front of them. They are rejecting all proposals where they are owed more than 75% of the overall debts, as they feel their customers are better served by dealing with them directly.

[AlanO]

Hi K46

When you say most of the debt is with Lloyds what percentage of total and what is the overall amount. This will influence their decision and also what options you have.

All the best Alan

www.debtdr.co.uk

[k46]

Hi thanks for your responses.

We have 2 loans credit card and overdraft with them, and the other is catalogue and mobile contracts.
The amount to Lloyds is around £25000 I think the other 2 are minimal compared to this but the company we are looking at have told us they are rejecting all ivas wether it be £50 or £50000 so we dont know what else to do at the moment many thanks

[MelanieGiles]

Which IP firm are you using, and how much are all of your debts in total? The advice you are being given in simply not true, unless you owe them more than 75% of the overall debts in which case I would not have suggested an IVA to you in the first place.

[carlmcmullen]

I had a conversation with KPMG last week who vote on behalf of Lloyds and they have told me Lloyds will continue to support IVA's.

However if they have more than 75% of the total debt then they will put the client onto a repayment plan that will reduce there debt and allow them enough disposable income to make a sensible offer to the other creditors.

So i think you are being told false information - suggest you get a second opinion

[k46]

Hi think this must be the case then as we owe roughly £30000, the firm we were looking at is dfd {debt free direct}.
As we owe 2350 to catalogue and mobile contracts around £1100 therefore lloyds would be more than 75%.
Many thanks

[MelanieGiles]

This has been known for some time in our marketplace, and I am therefore suprised that the largest provider of IVAs in the UK is still recommending IVAs.

You are now far better off contacting Lloyds TSB directly to see what they are able to suggest to help. I will be interested to learn the outcome of this, to see if Lloyds do stick to their word and assist with a proper repayment plan based upon your actual affordability, which also takes account of the other creditors on a pro-rate basis.


Good luck.

[AlanO]

Hi K46,

With the debt split here it is most practical for direct negotiation - you will not have the legal protection that an IVA affords but Lloyds will agree to a programme if they are to recieve a reasonable return over a period.

The other creditors could also be dealt with informally as you say they are minimal.

I suggest you contact an expert to review your situation - However such arrangements are relatively straight forward for them to agree the key is being able to sustain the payments at an acceptable level

To make this an effective arrangement you will need agreement to the suspension of interest and charges

All the best Alan

www.debtdr.co.uk

[k46]

Thanks for your replies I will try to contact the bank and arrange to see them and talk over this and hope they agree, its a bit scary visiting them and telling them the situation but I guess there is not alternative thanks again and I will let you know when I go.

[AlanO]

Hi K46,

you need not be alone - you could take advantage of a free consultation with experts, who will steer you or if you prefer subject to engagement act on your behalf.

All the best Alan

www.debtdr.co.uk

[MelanieGiles]

Lloyds have made it very clear that in these circumstnaces they expect their customers to deal with them directly rather than through paid intermediaries. I gather they now have a specialist team set up to deal with these matters, so would be interested to hear how you get on with that and whether they are prepared to help you with payments to your other creditors.

[Viki.W]

Hey k46,

Please let us know how you get on with Lloyds TSB, I have just worked out that my debts are actually 77% with Lloyds TSB so I am really worried now as I thought I might have been ok to apply for an IVA or Lump sum Iva. Kind regards, v.w