Resolved Question

Overdraft interest charges and being on income support?

I have had a overdraft for about 3 years now, it started off at £250 and crept up to £2100.
when i opened my lloyds bank account i was working at the time, then i had my son and 4 yrs on im still out of work.
anyway whenever i increased my overdraft online it always asked for employment info and even though im getting income supprot i was always putting part time work down, as i was worried they would reject my overdraft.
I was talking to my cousin and she said if you are on income support you shouldn't have to the pay the interest every month, i currently pay £30 interest every month.
could anyone let me no if it is true?
I no its my fault for lying on my online banking about working but surely my bank should have checked my recent in going money to make sure i was working.

thanks in advance

Best Answer - Chosen by Voters

You lied to get money that you weren't really entitled to and now you want to get out of paying it back? When a bank asks what your income is you are supposed to tell the truth - they take it on good faith that you have told the truth. It's up to you to give the correct details - not up to the bank to check every word you say. What you have actually done is to obtain money by deception - or fraudulently obtain money.
With no job and a small child I would normally feel quite sorry for you, but in this case I don't. You broke the law by giving false information, spent the money knowing that there was little chance of you paying it back, then did it all over again to get more money - I can even understand why you did that and not blame you. But now you want someone else to be blamed for giving you the money. That is just about as hard-faced as you can get!

67% 2 Votes

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Other Answers (3)

• So you telling us it is not your fault for telling lies? who's fault is it then? I'm not being funny love but, whenever you fill in a form or a application for a loan,overdraft or HP agreement, you must tell the truth, it tells you in small print that you be prosecuted, you may try and stop your interest payments every month, but you may be in bother because of misleading information on your increased overdraft request,good luck

  33% 1 Vote
• I am sure you may not see this as helpful but I think you should go into the bank as soon as possible and go explain what has been happening. This will for one, make you feel better and you might find the bank will help you with your financial issues including give you information on interest payments. I would own up now while they are pressured by the government to do the most for people struggling financially through the recession. Hope this helps.

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• Your balance is now more than 8 times what is was then you got started with the overdraft, and is reaching a point where the interest payments hurt your budget.
  
  You are at a tipping point where you really must reverse things by starting to pay down the overdraft. If you let it continue to grow at this rate, it will eventually be more than you could repay in a year.
  
  Focus your attention on getting a job, not trying to get relieved of paying the interest charges. That's the only thing that is going to turn this situation around.

  0% 0 Votes