Lloyds refund interest charges and fees

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andrewf

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Post by andrewf » Wed Jul 18, 2018 8:40 pm
Hello all Its been a while, Hope everyone is well.

June 2017 my IVA was completed, as shown on my credit report, all creditors satisfied with £0 outstanding. I have my completion certificate and I thought this was a distant memory.

Today I received 2 letters from Lloyds regarding closed accounts (1 loan and 1 credit card).

Basically a review on the banks actions / interest charges / and fees at the time in which we suffered financial difficulty leading up to us taking out an IVA, had resulted in refunds being calculated of over £900.

They then state 'as the amount to be refunded is greater than the amount we owe'???, the credit has been made into the closed account.

I think what Lloyds have done is wrong.

The IVA process ensures all creditors receive an agreed percentage of what I can afford to repay, and any windfall would be distributed accordingly. I was led to believe this doesn’t go on forever, and after an agreed amount of time, the account is settled and no more money is owed.

If an IVA is never actually settled or closed, and the bank can reclaim money indefinitely, surely this additional funds should be distributed on the terms of the IVA to all creditors, and the IVA practitioner? How can this be fair to the other lenders?
...OR...
If the IVA is complete and creditors can’t make any more claim for money against a closed settled account, surely this money should be paid to me, after all it was these unaffordable never ending excessive charges that made the IVA appealing in the first place!!!!
:x

andrewf

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Post by andrewf » Wed Jul 18, 2018 8:44 pm
Sorry correction***

They then state 'as the amount to be refunded is LOWER than the amount we owe'???, the credit has been made into the closed account.

recovering

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Post by recovering » Wed Jul 18, 2018 9:32 pm
I had a similar letter today and decided to ignore it bit mine was only £63 i will probably get another one as i had a loan with them too

andrewf

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Post by andrewf » Wed Jul 18, 2018 9:35 pm
recovering wrote:
I had a similar letter today and decided to ignore it bit mine was only £63 i will probably get another one as i had a loan with them too

have you completed aswell?

andrewf

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Post by andrewf » Wed Jul 18, 2018 9:41 pm
I just can’t see how they can claim I have an outstanding balance? They have reported to the credit reference agencies of over a year that the balance is £0, with the status as SATISFIED!
Sending me an apology for making me go Insolvent because of inappropriate charges / interest and fees, 1 year after completing the IVA, but in the next sentence telling me I will be getting f all is just pain cruel...

Foggy

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Post by Foggy » Thu Jul 19, 2018 6:55 am
Technically the money should be paid to your IP for distribution between creditors or return to you if the IP deems this uneconomical. I doubt that your IP would argue the point with the bank though. You could fire off a complaint to the ombudsman --- they do not involve themselves in IVA's, but, as this is a result of their investigation into banks charges, might be interested in the fact that the banks are still trying various ploys to avoid refunding the amounts due.
My opinions are merely that .. opinions based on experience. Always seek professional advice.
IVA Completed 23rd July 2013 .... C.C. 10th January 2014
http://foggy.blogs.iva.co.uk

recovering

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Post by recovering » Thu Jul 19, 2018 12:25 pm
Yes I have completed and to be honest I can’t be bothered to argue with them. As far as o am concerned it is all complete so they can’t chase me.
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