Default on Credit File for bank account over limit Lloyds

[dicklett]

Hi, could do with some help please,

Ive recently discovered a default on my Credit file from 2014, i don't know why I've not seen this before, either blinkers on or I've just not checked thoroughly.

Its only for £154 from Lloyds, i moved bank accounts a few years ago and in doing so once the overdraft facility had been removed etc there was a negative balance on my account for £154, it was there for 2 months and then paid once i had realised, so is settled but the default has been registered.

I don't recall receiving a default notice for this at the time, the negative balance was created through overdraft facilities being withdrawn, therefore utilising i assume an unauthorised overdraft, then the account was closed when it was cleared.

What do you think the chances are of having this default removed as its affecting an otherwise healthy credit file, like i said i don't recall receiving a default notice for it, is it worth submitting a request to see if they can provide this in the hope they can't and i can get the default removed ?

Appreciate your time and any advice.

Thanks

R

[artourious]

Re: Default on Credit File for bank account over limit Lloyds

just received one of these on my CRA record. its a plain 6 years from the date it first appeared, unless you can get it removed, as inappropriate., but from what you say it looks cut and dried.
Senior members may have better advice.

A.

[dicklett]

Re: Default on Credit File for bank account over limit Lloyds

Hi, can anyone help me with this. Its in relation to a a default notice they placed on my file regarding an unauthorised overdraft.

I have tried the nicely nicely approach and asked them to consider removing the default as a goodwill gesture, they replied and said they wouldn't. So now i have sent a further letter asking for a copy of the default notice they would have sent me at the time, included a £1 postal order for their trouble etc, advising them that i did not receive any notification of default etc. They have replied stating the following :

We can only remove a default if its been registered due to an error and this isn't the case in this instance. Data forwarded to the credit reference agencies has to be sent in line with the data protection act, principle 4 of the DPA states that personal data shall be accurate and where necessary kept unto date. if inaccurate data about one of our customers is held by the credit reference agencies, we'll be in breach of the DPA. Removing the default we've recorded with regard to your current account debt would mean we are not reporting accurate data.

We don't retain copies of default notices, or enforcement notices in the case of overdrafts, and we are not obliged to do so That being said i can confirm that we sent an enforcement notice to you on 18th November 2013. This explained that if you didn't repay the outstanding amount your account would be passed to our consumer debt recovery department and a default recorded on your credit file with the credit reference agencies, to stay in place for six years. Your current account was considered to be in default on 12th feb 2014 when the balance was overdrawn by £154.49

We are not obliged to keep paper records indefinitely and as your account was closed over 2 years ago I'm not not able to supply you with a copy of the application form. However i have enclosed a copy of the final statement we issued on the account and this confirms the amount of £154.49 was outstanding. Yours sincerely.........

Can i go anywhere with this, they are claiming that they aren't obliged to keep copies of notices sent to me but their records state they did.

The debt was cleared by me and this is shown on the statement they have sent to me with the letter. They claim that the letter they sent me stated (see underlined above) if i didn't repay the outstanding amount my account would be passed to their debt recovery department. They make no mention in the letter that they apparently sent about time scales or when the debt should be repaid by or state how long i had to pay it, only that if the debt wasn't paid. But it was paid. There is no letter to refer to to check as they don't have one, only the comments made above.

Could this be my get out clause the fact they make no mention of how long the debt had to be paid ?

[dicklett]

Re: Default on Credit File for bank account over limit Lloyds

Is it important to add, the account was closed , it was transferred to a new bank who took care of all the dd transfers, balance etc, so when the Lloyds account was closed i never received any request or demand for payment or agreed with them to set up a repayment plan for the balance that was left outstanding. It only came about as i finally received a request for payment from a company called apex acting on their behalf.

[Debt Camel]

Re: Default on Credit File for bank account over limit Lloyds

What date did you repay the debt?

[dicklett]

Re: Default on Credit File for bank account over limit Lloyds

HI Debt Camel, the debt was actually repaid in March 2014, i received notice from Apex and as soon i received that i paid it back all at once, prior to this they sent me nothing to tell me that the debt existed, i see from my credit file that they have put payment frequency monthly - there was never anything set up or agreed to pay anything back be it monthly or otherwise.

[charitynjw]

Re: Default on Credit File for bank account over limit Lloyds

[MENTION=48934]Debt Camel[/MENTION]

[Debt Camel]

Re: Default on Credit File for bank account over limit Lloyds

The default notice letter would usually have given you 30 days to repay the balance.

Have you put in a formal complaint? If not then you should, pointing out that your credit file is spotless (enclose a copy), you clearly were not in financial trouble at the time and that you paid the account in full as soon as you were notified about it by the debt collector. Therefore the most likely explanation is that you never received the November letter about the default so to leave it on your credit file is an unfair penalty. Add that you will be taking the case to the financial Ombudsman if the default is not removed.

[dicklett]

Re: Default on Credit File for bank account over limit Lloyds

Hi Debt Camel, thanks for the advice im just in the process of compiling my letter. Can you help me further, the amount in question would have been for an un agreed overdraft that existed when the account was closed, i believe that current accounts and overdrafts aren't covered by the CCA 1974. Am i right/wrong ? However in one of their letters back to me they claim to have acted inline with the CCA 1974 by registering the default with the CRA's. So if they are saying that they've acted inline with the CCA then surely they are obliged to send me the info i asked for in a CCA request ? They received the request and the £1 but only sent me a closing balance and told me that they aren't obliged to send such info.... is it worth fussing over this in my letter do you think ?

[dicklett]

Re: Default on Credit File for bank account over limit Lloyds

if i post my letter would you mind having a read through it to see what you think ?

[Kafka]

Re: Default on Credit File for bank account over limit Lloyds

DC has provided some good advice above.

I would suggest that before you do more you should send a Subject Access Request to them (with the fee of £10) in order to obtain all the personal data they hold on you. That will confirm exactly what they hold and what their 'proof' is of the Default Notice being sent, though I suspect it never was and they are lying.

They are obliged to maintain records for 6 years and if they are registering negative data about you they should have evidence to support that, I would look to use that as a central action against them.