accounts in dispute but still defaulted

[tlk]

hi all, I hope someone out there can help,
I have had a dispute with the bank regarding irresponsible lending since Jan this year, the bank agreed our dispute in Feb and agreed to refund all the charges and interest dating back to 2007, this cleared 2 loan accounts and significantly reduced other cc balances, the dispute was passed to the fos as we did not agree figures, they have reduced changed 3 times since the fos looked at them. The problem I now have is that the bank defaulted all the accounts in august even though these accounts were with the fos and like I said would be significantly reduced. The fos are refusing to have the defaults removed as they say the bank are in their right to default these accounts and that there is no guidance saying that there should not be any activity on accounts in dispute. I am now unable to accept the fos decision even though I now agree the figures because of the defaults as I strongly believe they should not be there. Please can someone advise me on what to do next. I would also like to mention that some of these accounts have also been sold on.

Thanks
A very confused tlk

[Gorang]

Re: accounts in dispute but still defaulted

Hi and welcome

this cleared 2 loan accounts and significantly reduced other cc balances

Is there still monies owed, on the accounts that have defaults registered against them???

When the bank refunded the charges what sort of response did they give you??
Was it the usual "offer made as a gesture of goodwill" rubbish??

[tlk]

Re: accounts in dispute but still defaulted

HI Gorang,

2 accounts will have a zero balance, 1 will have £500 left owing yet they defaulted the original amounts £ 4,600 and 1 will owe about £1000 the refunds have not come about yet as they were still with the fos, the bank agreed they had put us in an unaffordable position and as the fos would expect in cases of irresponsible lending, as quoted by the fos, agreed to refund all charges and interest. The complaint was sent to the fos because although they said all interest was to be refunded the bank had not done this and also the fact they wanted to send the remaining debt to dca which we felt was unfair as we had never missed a payment until the dispute. The bank sent the debt to dca even though it was part of the complaint. All we want to do is clear this debt by remorgaging but with the defaults we cant do this.
thanks tlk.

[FlamingParrot]

Re: accounts in dispute but still defaulted

On your first post, you mention something about 'going back to 2007'. When did you default the accounts? If it was at around that time, the defaults would be about to drop off anyway.

The guidance for recording defaults states that they can be recorded even when the accounts are disputed, because the credit files are supposed to reflect your conduct with the account, i.e. if you didn't keep up contractual payments, that should be recorded as a default.

You say you'd like to remortgage to clear your debts. Personally, I don't believe that securing unsecured debts on your home (which is what you'd be doing if you remortgage) is the way to go. There are cases where it may well be suitable, but I'd be reluctant to suggest such a thing in the majority of cases.

It would help if you could tell us a bit more about those debts, as there may be better alternatives for dealing with them. :thumb:

Type of account (credit card, loan, catalog, overdraft, etc.)

• Approx. opening date
• Name of original creditor (bank)
• Current owner (DCA if applicable)/Who is chasing you
• Approx. balance outstanding
• Approx date defaulted
• Approx. date of last payment (inc DMP, tokens or reduced payments)
• Was there PPI

[tlk]

Re: accounts in dispute but still defaulted

Hi,

Accounts were defaulted in August this year, 2 loan accounts opened in 2007 and 2 credit card accounts both redone by bank again 2007 all lloyds, like I said the 2 bank loans would be cleared with the offer, I have spoken to the oft and they said there should be no activity on these accounts as they are in dispute yet the fos say dfferent. last payments were feb this year when Lloyds admitted irresponsible lending. DCA's are Westcott, apex and credit solutions.