Lloyds admit error in not removing default from Credit File for 3yrs - compensation?

[bettyshotpot]

Hi,

I was wondering if there was any help out there regarding a default on my credit file that really should never have been placed on there - but has been accepted by Lloyds that it should have been removed 3 years ago, but wasn't?

I had a current account with Lloyds and went overdrawn by £6.73 in 2007 - which turned into a farce of almost £600 in charges. I attempted resolving this, with a few letters to them back in 2007 and 2008 but was totally ignored and the charges continued to a total of £593.87. My account was closed and a default placed on my credit file.

I wrote to Lloyds again in 2011 as I knew I had been unjustly treated and they 'refunded' the 'closed' account to make a zero balance and said they would remove the default from my credit file. They did not. They also would not reinstate my account, even though I had managed it well and had it for 15 years or so.

Recently I applied for a credit card and was declined. I looked into this and found that Lloyds still had the default on my file. I have attached letters from them regarding this. They have now removed this default and my credit score has jumped +500 points within a month with no other activity on my file.

They have offered me a total of £100 in compensation.

Considering my options here. I have not 'accepted' the £100 compensation, as I feel that this has had a detrimental impact on my credit, as another product I applied for early last year, I was accepted for but am being charged a much higher rate of interest - clearly for the 'risk factor'. Also, should they reinstate or open a new account for me?

Any advice on how to proceed/what to say to Lloyds regarding this?

Many thanks,
Betty

[PAWS]

Re: Lloyds admit error in not removing default from Credit File for 3yrs - compensati

Hello Betty.
I am no expert but if I was you I would dance an absolute fandango on them. £100 for all that embarrassment and hassle when they added £593.87 in charges to six lousy quid!
As I say I have no idea what your legal position is but if it were me I would fight this. The cheeky bs.:yell:
Hopefully a calmer more informed person will come along soon and advise you. 'Can’t wait to find out how you get on –good luck.:thumb:

[Johnboy007]

Re: Lloyds admit error in not removing default from Credit File for 3yrs - compensati

Tell them you will only accept five times what they charged you, by way of compensation.
Five times £593.87 = £2969.25
Round it up to £3000.00
Good luck

[Amethyst]

Re: Lloyds admit error in not removing default from Credit File for 3yrs - compensati

I think you probably need to be a bit more careful with this. Have a read of Durkin/Pc World.

This is useful -

I was accepted for but am being charged a much higher rate of interest - clearly for the 'risk factor'

You can work out what affect it has had on you - what would you have been charged on a 'normal' credit card compared to what you have been charged on the higher rate card.

Also when you applied for credit and was turned down, what was that for? Have you suffered any loss because of the decline ? (realistically)

It does sound as though that was the only default on your file so it is right you should be compensated for the trouble caused and reasonable consequential loss.


Also no they shouldn't reinstate the account and they are under no obligation to let you open a new account. (really after that treatment I'm not sure why you'd want to)

[bettyshotpot]

Re: Lloyds admit error in not removing default from Credit File for 3yrs - compensati

Hi there,

Thanks for your posts.

I applied for a 0% transfer balance credit card, so that I can get rid of the credit card I am on at currently 44.94%!!!!!

I would only like an account re-opened or at least have the ability to access one in the future, should I ever need one. The account should never have been closed, as I had banked with them for 15+ years and all my attempts to rectify the situation via letters were blatantly ignored (both in 2007 & 2008) and consequently I am being further penalised by having my 'options' limited in the future if I am unable to open an account with them because they closed this one.

So really, I need to work out exactly what it has effectively cost me in terms of interest charges?

[bettyshotpot]

Re: Lloyds admit error in not removing default from Credit File for 3yrs - compensati

Hi,

So, after calculating actual and consequential losses (due to higher interest rates/being rejected from a 0% etc) I requested payment to settle the matter at £2k... but have only received numerous cheques adding up to £300 after a few letters back and forth. I have said my next action is the Financial Ombudsman, the ICO and Court to seek redress. Is there anything else I should be stating? Any case law?

Many thanks