My bank account is frozen and I don't know why...

Former Member · May 2009

and neither do they!

I have three accounts with Lloyds, one graduate, one savings and one current.

I have a £2k overdraft on the graduate and because of Lloyds charges when I was going through some really hard financial times It's £200 over the overdraft because of the bank's bloody charges. However I have been paying this off (and the lady on the phone said that they had acknowledged this and they really appreciate it).

My savings account is fine, had £50 in it and transferred this today into my graduate account and paid off £50 of the debt and yesterday I paid another £100 towards it from my current account.

And my current account has no overdraft on it, I got paid yesterday £1200. Budgeted my life out and found how much I could pay towards my various bills etc and budgeted in a treat for myself (to go and see my friend in London to celebrate her finishing university) and that was fine.

So got to the train station and my card is rejected. Tried again... rejected.

Went to a cash point and it wouldn't even tell me my balance. Went over to a Lloyds TSB cashpoint which said I have £900 odd available (I had paid my rent yesterday) but again wouldn't let me withdraw anything. Came home and tried online and I could trasnfer money from my savings but anything from my current account I just get ERROR!

Called the bank and the lady said there was no information whatsoever. Everything should be working fine, even with my graduate account status they wouldn't and shouldn't have frozen it . She had no idea and said that she would get someone to phone me back and get the block off but that was two/three hours ago and nothing.

My online banking is still up the creek and now I am missing out on a trip I have been looking forward to and saving little bits and pieces up as much as I could over the last two months. I can't get any money out, I have to pay for my bus pass, various bills etc and I can't. I even tried to pay off the remainder of my overdraft debt (even though I can't afford to really) but it wouldn't even let me do that!

Anybody got any idea what's going on?

Former Member · May 2009

Is the online banking error definately linked to the problems you are having with your card or could the two happening at the same time be a coincedence?

I've had a card stopped for possible fraud prevention at one point by my bank and the general customer services weren't away of why. I'm wondering if it could be something along those lines - do they have your most up to date contact information at the bank, if they were trying to get in touch?

I suppose the main thing to take some comfort from, although it doesn't change how shitty your weekend has turned out, is that clearly the bank hasn't done anything disastorous like cancelling your overdraft as the woman on the phone would have known about that.

Even the most extreme possibilities, such as a CCJ decision I think would only require them to take money from your account to pay a bill, though you would have been informed about it, not actually freezing the account.

Hope they call back soon to let you know what's going on - sorry about the trip :grump:

Former Member · May 2009

There are one of two reasons why this might have happened:

1. Lloyds have fucked up. This is common.

2. Lloyds have exercised their right of 'set off'. A bank can take money from any account you hold with it- including savings accounts as well as current and graduate accounts- to settle any outstanding debts you owe to it. So if, for instance, you owe them £2200 and you're paid £1200 into your savings account, the bank can transfer the money from your savings to repay your debts. This is perfectly legal and there's nothing you can do about it.

This also includes if you have accounts with different brands of the same bank. For instance, if you owe NatWest £2000 they can take money from an RBS account, perfectly legally.

Banks will really only do this if you've defaulted on a debt, for instance by missing a couple of loan repayments or by running over your overdraft limit. Banks recently have been exercising this right more and more; Lloyds are notorious for taking a hard line on defaulted overdrafts.

I would highly recommend that you open a bank account with a bank NOT linked to Lloyds and get your wages paid into that. You're protecting yourself from the bank exercising 'set off'.

Former Member · May 2009

I work for lloyds, its probably that your card has been auto-cancelled by your branch for bad credit, for example if you had a debit card previously, they may not think you are eligible now and may have cancelled it without notifiying you.
EDIT: Btw, this is due to bad credit, so if you've had a few debts then it could be that.
Id ring up phonebanking again if possible. Ill pm you a telephone number for premier banking so you get through to one of the more skilled advisors.

Former Member · May 2009

I spoke to the collections guy and he was really helpful he just extended my overdraft and wrote down how much per month I'd be paying. Card back in use tomorrow no problemo. I just don't see why they wouldn't just let me pay that little bit I'm over though rather than freezing my entire account.

Former Member · May 2009

Ah right, glad you've got it sorted, collections are generally really helpful, although theres 2 centres, one in mumbai and one in brighton, and the language barriers sometimes a bit of a problem. Btw, if anyone needs a free phone number for lloyds rather than the 0845, Pm me.

Former Member · May 2009

Whenever I've gotten through to the one in Mumbai it's always buggered up. I've been promised agreements and then received charges because someone hasn't written anything down on the record card etc.

Brighton are much more helpful

My bank account is frozen and I don't know why...

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