LLoyds TSB default placed 9-10 years later

[bean23]

Hi everyone,

I believe a default has been unfairly placed on my credit file by Lloyds TSB, around 9-10 years after the default actually happened. Here's the background and I'm hoping you can help. I have seen a few threads on here about similar issues and that Celestine was fighting Lloyds in court about something similar - but haven't been able to find any outcomes on here so would be keen to hear whether anyone has been successful and what, if any, hope there might be for me.

Recently I was contacted by a DCA about a debt from an an unpaid overdraft I had at university with Lloyds TSB. I set up the account in 2002, and in short ended up not paying off the overdraft on the account of around £1600. I moved house several times, the first without updating my address and for this reason did not receive any correspondence from Lloyds asking me to repay - the last I will have heard from them was while I was still at the original address, in 2002.

I accept that this was my responsibility, and I realise it was extremely stupid of me not to update my address with the bank or repay my overdraft. However, it was more than 10 years ago.

In all honesty I forgot about this and heard nothing more until this January, 2013, when I received a letter from Robinson Way asking if I had lived at the previous (2002) address. When I called them it turns out it was about this old debt which they were recovering for Lloyds.

I paid the debt in full, feeling completely mortified about it and in a panic. I realise this may not have been the best course of action as (I now realise) it was statute barred. However, I paid it as I wanted to accept responsibility for the debt, and peace of mind.

Now I have checked my credit file and the default is appearing on my record, dated 29 March 2012 and updated as of 10 Feb 2013 (showing it is satisfied).

My question is about the default notice appearing now and whether there is anything I can do to get this removed or the date changed, given that presumably the original default actually happened sometime 2002 - 2004 when I stopped making payments? I'm not questioning that I did default, but just the date of it. Why would they wait 8-10 years from the date of the last payment before placing a default notice? Are they within their rights to do this and is there anything I can do to challenge it? I understand from researching on here and other forums that this could contravene guidelines around data protection as it's inaccurate to say that the default occurred so long after it actually did, and unfair that this will affect me, if this remains on my record for 5 more years from now, for up to 16 years after the original event.

Finally, I am extremely worried about how this will affect me now. I have a mortgage, a credit card which I am repaying and an overdraft (none of them with Lloyds). My credit record has been good until this default was added. Is it likely that now there is a default on my file, my overdraft and credit card agreement could be withdrawn from me? I know having a default on file is going to seriously damage my ability to get credit in future but what I'm actually most worried about now is whether it will affect any of the existing arrangements I have.

I'm really anxious about this and would appreciate any advice you could give.

Thanks

[Kafka]

Re: LLoyds TSB default placed 9-10 years later

It's a pity that you paid against a statute-barred debt, because you can't reclaim the payments made to do that. This thread also reiterates the major mistake in ever speaking to DCAs on the phone.

Basically, the debt is time-expired and there is no legal right to still have any reference to this on your credit file. What you need to do now is to send a threatening letter to Lloyds (assuming they still own it?), pointing out that the debt was statute-barred but payed by you because RW deceitfully presented it as a current debt.

As they have no right to be registering this account on your credit file you demand that it be removed completely and immediately. You demand that they send you a written reply immediately confirming that all reference to this account has been removed from all credit reference agencies. If they fail to do so within 14 days, you will take appropriate action through the courts to force its removel, including a substantial claim for damages, as well as a complaint to the Information Commissioner.

[Rico]

Re: LLoyds TSB default placed 9-10 years later

Is it likely that now there is a default on my file, my overdraft and credit card agreement could be withdrawn from me? I know having a default on file is going to seriously damage my ability to get credit in future but what I'm actually most worried about now is whether it will affect any of the existing arrangements I have.

It probably won't affect existing arrangements, however, you'd not be eligible to take advantage of any new credit say at 0%.

It's possible they might try doubling your APR overnight but I'd hope that a face to face meeting with an authoritative person at Lloyds will quickly resolve this for you. It would be malicious of them not to.

They have discretionary powers to remove defaults and in your case they should certainly exercise them.

Good Luck.

Rico.

[bean23]

Re: LLoyds TSB default placed 9-10 years later

Thanks for the advice. I don't know if this has just made me extremely paranoid but I'm anxious now that raising it with Lloyd's to request that the default be removed might make something worse happen. I feel as though I effectively stole this money - could they take me to court or issue criminal proceedings against me if I put myself back on their radar by writing to them? Would it be better to lay low and wait for it to drop off my file? I know I've paid the debt now but I feel like by making a nuisance of myself to them they will punish me for having defaulted in the first place. This is making me feel so anxious and paranoid, I keep having visions of worst case scenarios.

[Rico]

Re: LLoyds TSB default placed 9-10 years later

Hi Bean,

I suppose the default will only affect you if you apply for credit, insurance or even, in some cases, a new job.

Basically, anybody that has reason to look at your file, will see you as an undesirable!

This will change,as if by magic, in mid 2018 ish.

The bank won't take you to court. They should show remorse when you approach them. Face to face should be better than a letter.

The only way they may "punish" you, is, if you don't ask them to remove the default, they could use it against you, widening their profits by slapping higher interest rates on your existing borrowing due to this wrongful default.

You'll not be able to transfer your mortgage, for example, to another lender, while you have this default.

Hopefully, you'll meet a human that cares (they do exist!) and get the default removed in quick time.

Cheers,

Rico.

[bean23]

Re: LLoyds TSB default placed 9-10 years later

Thanks Rico, that's reassuring. I have been getting myself into a real panic about this!

[FlamingParrot]

Re: LLoyds TSB default placed 9-10 years later

Thanks for the advice. I don't know if this has just made me extremely paranoid but I'm anxious now that raising it with Lloyd's to request that the default be removed might make something worse happen. I feel as though I effectively stole this money - could they take me to court or issue criminal proceedings against me if I put myself back on their radar by writing to them? Would it be better to lay low and wait for it to drop off my file? I know I've paid the debt now but I feel like by making a nuisance of myself to them they will punish me for having defaulted in the first place. This is making me feel so anxious and paranoid, I keep having visions of worst case scenarios.

You didn't steal anything and defaulting on a credit agreement is a civil matter not a criminal offence. It may well be regarded as such in Dubai but not under UK law! Some lenders, particularly payday loan sharks attempt to mislead the public in this respect :rant: :rant: but the fact still remains, debt is not a criminal matter. :nono:

Debts can be pursued through the civil courts but, from posts above, I see this debt is already statute barred, which means it cannot be recovered through the courts, so you have nothing to worry about.

[CleverClogs]

Re: LLoyds TSB default placed 9-10 years later

You didn't steal anything and defaulting on a credit agreement is a civil matter not a criminal offence.

Indeed. But isn't pretending that a statute barred debt is still enforceable - as Robbingson Way seem to have done - a serious criminal offence?

[labman]

Re: LLoyds TSB default placed 9-10 years later

Indeed. But isn't pretending that a statute barred debt is still enforceable - as Robbingson Way seem to have done - a serious criminal offence?

I have a sneaky feeling you know the answer to this already. When a debt goes SB, it does not mean it ceases to exist. It does, and always will. What it does mean is it cannot be enforced through the courts - there is absolutely nothing wrong with a DCA who legitimately owns the debt writing and asking for payment. It is up to the debtor to point out they are under no obligation to pay one penny of it as it is SB.

[bean23]

Re: LLoyds TSB default placed 9-10 years later

Hi, I would be grateful for any comments on the below letter requesting that Lloyds remove this defaullt...Thanks in advance!

Ref: xxxxxxxx

I write with reference to the above numbered account.

I notice that there is a default registered with the credit agencies dated March 2012, however there was no activity on this account between 2003 and January 2013 when the outstanding amount was paid off in full despite the debt at this point being statute barred. Obviously, taking into account the ICO Guidelines of 2007 I wish to complain that you have unduly delayed adding the necessary default entry with the credit agencies.

The guidelines I refer can be found here: www.ico.gov.uk/~/media/documents/library/data_protection/detailed_specialist_guides/default_tgn_version_v3%20%20doc.ashx

There was no need for the nine year delay. Therefore I am formally complaining about this unnecessary delay and formally request that you remove the default as entered on my credit report with a date March 2012 as the default took place nine years previous to this.

Unless you act in accordance with current guidelines then I will have no alternative but to formally complain to the ICO and OFT.

I look forward to your reply within the next 14 days.

Yours faithfully,

[Nibbler]

Re: LLoyds TSB default placed 9-10 years later

"Complain to the ICO and FOS" more like. Maybe cc in the OFT, but the ICO and FOS are the primary 2.

and

"Furthermore, entering a default in this manner is a breach of your responsibilities under the Data Protection Act and Principles, as the record is inaccurate and as a result it is being kept on file or processed for an excessive period of time."