• Welcome to the LegalBeagles Consumer and Legal Forum.
    Please Register to get the most out of the forum. Registration is free and only needs a username and email address.
    REGISTER
    Please do not post your full name, reference numbers or any identifiable details on the forum.

Open Letter to Lloyds re Social Inclusion and First right of appropriation

Collapse
Loading...
X
  • Filter
  • Time
  • Show
Clear All
new posts

  • Open Letter to Lloyds re Social Inclusion and First right of appropriation

    The following letter has been sent to Cheif Executive of Lloyds Bank and copied to the Chairman of the Treasury Select Committee.


    J. Eric Daniels
    Group Chief Executive and Director
    Lloyds TSB Bank PLC
    Head Office
    25 Gresham Street
    London
    EC2V 7HN

    4th June 2008





    Dear Mr Daniels,

    OPEN LETTER on your banks policy with regard to social exclusion
    CC Rt Hon John McFall MP

    I am writing to you, as part of the Administration Team at the rapidly growing Legal Beagles Consumer Group, to request information about your banks current policy with regards to an individuals first right of appropriation.

    I am aware of Lloyds TSB's considerable efforts to help consumers who have, through no fault of their own, suffered financial hardship. However, despite your undoubted efforts in the matter, I would like to raise some issues that seem to be tarnishing your otherwise impeccable reputation.

    I am sure you are aware that an individual has the ability, under common law, to assert their right of first appropriation where money intended to cover essential living expenses are being taken by the bank in what may (by some) be considered unfair charges or in fulfilment of other debts. This "Right of first Appropriation" allows a customer to assign any funds entering their account to finance basic survival needs. This is something all the banks should be aware of, but sometimes junior members of staff do not understand this process since it is not very often used. These occasions cause significant financial hardship.


    Our members have experienced a number of instances of a lack of understanding of this right by some of your branch staff.

    Examples:
    Mr A -
    ''Lloyds staff told me if I enforced my first right of appropriation the bank would shortly after issue me with a 30 days notice of account closure.''

    Mrs F -
    ''I was told as you've come in to the bank with this letter of appropriation we can do this only once and we need you to come in to the bank on Monday, to draw the money out and so that we can speak to you about your account, we need to cancel all your direct debits and then close your account. ''

    Mr C -
    '' LLOYDS TSB are insisting that I cannot use my first right of appropriation, even though I have had to use it to pay my priority bills on three occasions. Lloyds have been taking charges from my account and leaving me with nil funds. I have complained and argued with those fine people in the collections dept and have had success in the past, with refunds been made by the bank. The branch staff and management have been nothing but obstructive and on my production of the letter of appropriation at the branch it leads to confusion embarrassment and total non co-operation from them. Today’s visit to serve them with the letter of appropriation was again confrontational by them and upon instructions from the said collections dept I was informed that they will no longer conform to my right of first appropriation. ''


    You may also be aware that much council recommend the use of an individuals first right of appropriation with regards to allowing housing benefit payments to be used to pay rent. It does appear from the councils that they too have experienced problems with some bank staffs knowledge of the law and have assigned benefit payments to cover debts instead of allowing individuals their basic living expenses, indeed Hinckley and Bosworth Borough Council in their advice leaflet on the use of the first right of appropriation clearly state '' Your bank may disregard this request. If this does happen you would then have to complain and involve the banking Ombudsman, which could take some time to resolve. ''.

    I am aware that you have made several commitments via the banking code to act reasonably to debtors in poor financial circumstances, and of the ongoing discussions and evidence you have submitted to the Treasury Committee's reports on social exclusion. Therefore, I would ask if you have any policies on tackling poverty, and ensuring that your customers are able to access benefits such as housing benefit and jobseekers allowance where they are necessary to fulfil basic needs.

    As I believe this matter to be of great media and public interest while I am aware you are extremely busy I would ask you to acknowledge this correspondence as soon as possible, indicating when you will be able to answer the questions raised in this letter.


    Yours Sincerely


    LegalBeagles
    #staysafestayhome

    Any support I provide is offered without liability, if you are unsure please seek professional legal guidance.

    Received a Court Claim? Read >>>>> First Steps

  • #2
    Re: Open Letter to Lloyds re Social Inclusion and First right of appropriation

    amethyst I hate to quote this bit, but please tell me that it was spell/grammar checked before sending.
    You may also be aware that much council recommend the use of an individuals first right of appropriation with regards to allowing housing benefit payments to be used to pay rent. It does appear from the councils that they too have experienced problems with some bank staffs knowledge of the law and have assigned benefit payments to cover debts instead of allowing individuals their basic living expenses, indeed Hinckley and Bosworth Borough Council in their advice leaflet on the use of the first right of appropriation clearly state '' Your bank may disregard this request. If this does happen you would then have to complain and involve the banking Ombudsman, which could take some time to resolve. ''.

    Highlighted in RED.

    Comment


    • #3
      Re: Open Letter to Lloyds re Social Inclusion and First right of appropriation

      I'm glad you raised that, Froggy. That bit confused me too!

      There are a few other things (mainly apostrophes) which a grammar check would have pulled up but I'm hesitant to point them out at this stage.

      I would suggest that perhaps publishing a draft of letters like this on the site, for useful comments like Froggy's, would be good practice rather than sending them off first and taking the comments afterwards?

      Furthermore, whilst I understand the reasons behind the letter and the points contained therein, banks aren't charities and they are not obliged to allow customers to continue to run their accounts beyond any agreed overdraft limit. I'm not saying that the quoted individuals were doing this, but it would be quite easy to envisage circumstances where more than an individual's income was eaten up by needs which a "first right of appropriation" would cover. In such circumstances, a bank is quite within its rights to ask the customer to take their business elsewhere IMHO as none (or effectively none) of their charges or interest will likely be met.

      I think reference in the letter to "in what may (by some) be considered unfair charges" is confrontational and unhelpful. It is irrelevant, really, whether the customer or "some" consider the charges unfair or not - they are the charges which the bank is currently charging on the account concerned. The point (about first right of appropriation) is just as relevant whether those charges are fair or not, so the comment doesn't help the argument.

      Comment


      • #4
        Re: Open Letter to Lloyds re Social Inclusion and First right of appropriation

        I do think that potentially our grammatical issues maybe slightly deflecting the subject of the letter with the right of appropriation and how little that some banks seem to treat this. Amethyst, I couldn't let that error go.
        Argentarius what do you think about the way the bank have given a number of different responses to the First Right of Appropriation which seem disproportinate to each other. No one singing from the same songsheet comes to mind.(TCF and this seem to be at a tangent with threats to close an account, and that it can be used once only). Amethyst, what about a simple question with those quotes with regards to how LloydsTsb bank treat the issue that you have highlighted.
        And the advice beeing given by different councils seems to be disproportionate to one another. Is there any way of being able to write to those councils and ask that if this advice is being given ie "it can be ignored" what other advice is given?

        Comment


        • #5
          Re: Open Letter to Lloyds re Social Inclusion and First right of appropriation

          Ah well I did ask peeps to check it first. You both have access to where it was being worked on.
          #staysafestayhome

          Any support I provide is offered without liability, if you are unsure please seek professional legal guidance.

          Received a Court Claim? Read >>>>> First Steps

          Comment


          • #6
            Re: Open Letter to Lloyds re Social Inclusion and First right of appropriation

            Amethyst you are wrong on post 5, second sentence. I had no prior knowledge of the letter prior to it being made visible to everyone on the forum. If I had, I think i would have said something.

            Comment


            • #7
              Re: Open Letter to Lloyds re Social Inclusion and First right of appropriation

              I don't think I know where to look, even if I have access to it! Sorry, Amethyst.

              I agree wholeheartedly that it is wrong for any bank's staff to give incorrect and inconsistent responses when people seek to exercise their right of appropriation. Obviously banks need to do more to train their front-line staff on this issue.

              Perhaps rather than telling individual customers that they may need to complain and involve the banking ombudsman, the councils concerned (one of which is incredibly close to me, in fact) should be contacting the banks concerned in a similar vein to Amethyst's letter.

              In fact, Amethyst, have you considered writing to Hinckley & Bosworth Borough Council with precisely that suggestion? Every little helps.

              Comment


              • #8
                Re: Open Letter to Lloyds re Social Inclusion and First right of appropriation

                It is a pity it wasn't properly proofed before sending. There are quite a few errors in it.
                Counting the days until I go to Oz

                Comment


                • #9
                  Re: Open Letter to Lloyds re Social Inclusion and First right of appropriation

                  Furthermore, its a pity we are looking at the errors and not looking at the actual issues that are contained within it.This is not a grammar thread in spite of my previous posts. There are a number of issues that I think Argentarius has specifically made. Some follow up on those two councils quoted and the advice they give in light of the changes to the banking code and also with a view of Treating Customers Fairly.
                  Please can we look to discuss these issues because it is the substance of what is contained that is important and grammatical errors can be forgiven.
                  I would be interested to see the response that LTSB and the Treasury Committee give so that any follow up can be made.

                  Comment


                  • #10
                    Re: Open Letter to Lloyds re Social Inclusion and First right of appropriation

                    Originally posted by Froggy View Post
                    amethyst I hate to quote this bit, but please tell me that it was spell/grammar checked before sending.
                    Originally posted by argentarius View Post
                    There are a few other things (mainly apostrophes) which a grammar check would have pulled up but I'm hesitant to point them out at this stage..
                    Originally posted by jenbabe View Post
                    It is a pity it wasn't properly proofed before sending. There are quite a few errors in it.
                    Oh well, we are all human. I did actually run this through a spell check when it was in the working forum, so feel free to have a pop at me if you want.

                    Its a shame that most of the posts are slagging off the people who are trying to help rather than discussing the issues within the letter.

                    How it helps by complaining and reporting the post due to errors is beyond me.
                    All it does is alienate the members who write these things, as this letter was rewritten by a VIP member and not team.

                    I am not sure who has access to the working forums, so cant comment on whether you could have seen it, but due to the information initially posted on the thread, I know that some will be aware of this.

                    Sometimes I wonder.....

                    Comment


                    • #11
                      Re: Open Letter to Lloyds re Social Inclusion and First right of appropriation

                      Amethyst you are wrong on post 5, second sentence. I had no prior knowledge of the letter prior to it being made visible to everyone on the forum. If I had, I think i would have said something.
                      I don't think I know where to look, even if I have access to it! Sorry, Amethyst.
                      Froggy Argentarius, For future reference working forums are here

                      http://www.legalbeagles.info/forums/...play.php?f=168

                      Comment


                      • #12
                        Re: Open Letter to Lloyds re Social Inclusion and First right of appropriation

                        I reported amethyst's post because she has suggested I was silent when the letter was posted in a working forum to which I have no access, when the discussion on this thread was moving onwards towards the contents. I gave her and LB Team notice that i would respond on thread if the erroneous comments were not removed because it was inaccurate(sorry but i am cantakerous on things such as that). They were not so I toned down my post merely to point this out.
                        CJ, I did have a look at that forum and the threads in there because of Amethyst's comment. It isn't there, its in another working forum which I have no access to.
                        Pkea, maybe this thread will not prevent people from contributing but help those silent minority who have NOT contributed or voiced their opinion and they may now take the time to read the posts within those working forums.

                        If you want any letter proof read prior to sending then my PM box is open so feel free to because I can't read it on a forum I am not part of.

                        Comment


                        • #13
                          Re: Open Letter to Lloyds re Social Inclusion and First right of appropriation

                          Originally posted by Froggy View Post
                          I reported amethyst's post because she has suggested I was silent when the letter was posted in a working forum to which I have no access, when the discussion on this thread was moving onwards towards the contents. I gave her and LB Team notice that i would respond on thread if the erroneous comments were not removed because it was inaccurate(sorry but i am cantakerous on things such as that). They were not so I toned down my post merely to point this out.
                          CJ, I did have a look at that forum and the threads in there because of Amethyst's comment. It isn't there, its in another working forum which I have no access to.
                          Pkea, maybe this thread will not prevent people from contributing but help those silent minority who have NOT contributed or voiced their opinion and they may now take the time to read the posts within those working forums.

                          If you want any letter proof read prior to sending then my PM box is open so feel free to because I can't read it on a forum I am not part of.
                          I assumed that once the letter was completed it was moved to the main campaigns forum for all members to read.

                          Comment


                          • #14
                            Re: Open Letter to Lloyds re Social Inclusion and First right of appropriation

                            Jeeeeeeeeeez the letter has been sent, can we not just await hopefully a good response.
                            We can also see if there any mistakes in the reply letter then can't we? thats' if we have nowt better to do. Enaid x

                            Comment


                            • #15
                              Re: Open Letter to Lloyds re Social Inclusion and First right of appropriation

                              Froggy, don`t forget that technically you DO have access to that thread so please,can we now drop this. Amethyst and others work tirelessly on the forum, your usual "correct this before I post on forum" ultimatums are unnecessary and frankly unhelpful. The letter is sent, the main points are clear so any hindsight is irrelevant. If you wish to contribute positively on future issues, you know how, the choice is your own. Now can we please move on.
                              Any opinions I give are my own. Any advice I give is without liability. If you are unsure, please seek qualified legal advice.

                              IF WE HAVE HELPED YOU PLEASE CONSIDER UPGRADING TO VIP - click here

                              Comment

                              View our Terms and Conditions

                              LegalBeagles Group uses cookies to enhance your browsing experience and to create a secure and effective website. By using this website, you are consenting to such use.To find out more and learn how to manage cookies please read our Cookie and Privacy Policy.

                              If you would like to opt in, or out, of receiving news and marketing from LegalBeagles Group Ltd you can amend your settings at any time here.


                              If you would like to cancel your registration please Contact Us. We will delete your user details on request, however, any previously posted user content will remain on the site with your username removed and 'Guest' inserted.
                              Working...
                              X