Wrongful default removed, consequential loss payment?

[Onetime]

Lloyds placed a default on an old account of mine in the tail end of 2011, I became aware of it in Apr / May 13 and notified Lloyds, they admitted it was in error finally around July / August and it was eventually removed it in October.

The reason I became aware of it was that I was looking to remortgage a property in order to release some capital to purchase another property in Apr / May. Obviously I didn't apply for the mortgage until the date by which I had been told it would be removed, September, it hadn't and the mortgage was declined.

The property I was looking to purchase was no longer available so I have not applied for another mortgage. property values have increased significantly in the last 7 months and so I will be out of pocket considerably.

Any advice on what kind of level of payment I can expect from Lloyds?

i have been in talks with them for some time but am starting to think that they are just delaying, I have also had to rent a property in the meantime.

Should i I continue with talks with them, call a solicitor or just the Financial Ombudsman?

many thanks for your replies in advance

[wales01man]

Re: Wrongful default removed, consequential loss payment?

Have you sent them a figure you wish to claim?

[Onetime]

Re: Wrongful default removed, consequential loss payment?

Yes, I suggested 1/2 the mortgage value x the increase in house prices according to a Lloyds article for the preceding 3 months plus the cost of the 6 month rental, ignoring other negative impacts such as delayed rental of property, other effects on credit such as credit card rates etc.
i suggested this as a conservative figure to avoid the hassles of fighting it out.

[wales01man]

Re: Wrongful default removed, consequential loss payment?

And the total is?

[Onetime]

Re: Wrongful default removed, consequential loss payment?

1/2 the mortgage value was just less than the capital being released.
i did not deduct the interest from the new mortgage, which in retrospect I should have but then offset it against the increase in rental lead time due to the delay from summer to winter and associated drop in rental demand in London.

[Onetime]

Re: Wrongful default removed, consequential loss payment?

It's just over 11k

[wales01man]

Re: Wrongful default removed, consequential loss payment?

I have no idea if they will pay but someone on here may have case history of a similar claim to advise you.

[Onetime]

Re: Wrongful default removed, consequential loss payment?

Thanks for the reply, any idea how much it would cost for a solicitor to prepare the case?

[Amethyst]

Re: Wrongful default removed, consequential loss payment?

Did you discuss the reasons for the mortgage decline with the lender at the time ? It may have been possible to get something in writing off Lloyds confirming it was an error and was in the process of being removed to give to the mortgage lender.

Also do you have something off Lloyds in writing confirming the default was an error , and from the lender, confirming the reason for the decline ?

[Guest]

Re: Wrongful default removed, consequential loss payment?

There is considerable case law for claiming damages under similar circumstances, and it has to be said not much of it is positive.

However it does sound, form the little information given as if you have a better claim than most. You will need to show that there was an avoidable error on their part and also that the losses you incurred were due uniquely to the incorrect data, in other words if this data had not been on your credit file you definitely would have got the deal you wanted. (this is supported by case law).

In the first instance I would approach them and see if they will make some kind of offer of settlement.

[Onetime]

Re: Wrongful default removed, consequential loss payment?

Hi, the lender would not discuss details of the decline just stated as "credit score too low" they would not entertain any mitigating circumstances , my credit score has always been "excellent" until this. I have various pieces of paperwork stating the default was incorrect and as such has been removed from my file...

Thanks

[Onetime]

Re: Wrongful default removed, consequential loss payment?

Lloyds were the ones who suggested the consequential loss payment, initially I just wanted the incorrect default removed from my file, lloyds admitted the fault and said they would remove it within 30 days and then completely failed to do so, quoting human error as the reason. I have notes of all dates and times of correspondence. It was this failure that lead to the mortgage being declined and missing out on the investment property and consequential loss.

i have been trying to get them to settle but they just seem to be stalling, hence considering legal action.