3 years old default and card expiring next month

[Stark3000]

Hi there,

I found out after paid a debit card default and installed Credit Karma that I also have a default on my credit card which I dont use since 2019 as relocated to Austria.

I'm gonna explain the situation to make it clear and hopefully find some advise...

I used to have either debit and credit card with Lloyds bank before leaving the UK for work in 2018. When I returned last July I received in August 2020 an email from Link Financial (probably a letter too but I changed my address) as my debit card was in default. I dont know what was the issue behind it as the amount to pay on the debit card was under 200£ so I paid it straight away, I thought possibly an overdraft. Recently I thought of checking my credit card too and installed Credit Karma to see if I had any other bad credit which I wasn't aware of... unfortunately I found out that my credit card is in default too with default date on February 2019.
The default is still with Lloyds, differently from the default of the debit card which was showing with Link Financial. I went to check my physical card (I kept my cards after I left as I was unsure when I would have returned in UK) and found a match on the dates between the cards and the email from Link Financial as I've been contacted from them just 1 month after the expire date of the debit card.
My concern now is the credit card as it will expire next month and still showing on Credit Karma an open account with Lloyds.

Are there any chance that my account will pass to Link Financial after the expire date of the debit card?

It is a much higher amount which I doubt I could pay by next month but also have passed 3 years since default date and as far as I know the debt will be cancelled after 6 years.
What do you suggest to do? Do I wait until the 6th year? Shall I wait to be contacted either from Lloyds or a credit collector agency?

After I paid Link Financial my credit score went even more down so I'm a bit afraid either pay or not as it will result into a drop of my score anyway.

In case I will have the founds to pay, Who should I pay it to? If I will have to pay monthly, will my debt end on the 6th year or it will be needed to be cleared 100% even if the payments will get into the 7th year?
Will I still be able to use the credit card once the debt has been cleared off? Can this case turn into a CCJ?

Sorry for the number of questions, I made a lot of research before posting and the more I searched the more doubt raised into my head

Thank you in advance for any advise



Celestine

[atticus]

You may well be sued if you don't resolve this. So I suggest that you contact your creditor and come to an arrangement.

[MIKE770]

Subject Access Request Letter send to lloyds they have 30 days to respond that will give the full picture. no charge but get proof posting and keep copy on file.

[Stark3000]

Subject Access Request Letter send to lloyds they have 30 days to respond that will give the full picture. nop charge but get proof posting and keep copy on file.

Could you give me an idea what should i have to write to them?

Also Do they have a specific address to send this letter?

[ostell]

Click on the link that was kindly given to you in the post

[Stark3000]

Click on the link that was kindly given to you in the post

Thank you, i only need to find out the lloyds adress where i can send this letter

[Celestine]

You can get a copy of all the personal information we hold about you by writing to us at this address:

DSAR Unit
Lloyds Bank
Customer Service Recovery
Charlton Place, C57
Andover
SP10 1RE

[Celestine]

The damage is being caused by the defaults and there is almost nothing you can do about those. The account is still well within 6 years limitation so unfortunately I'd be highly surprised if they 'forgot' about the account.
Link Financial are among the more reasonable of debt purchase companies. It is also worth bearing in mind before you go paying off any more chunks - Do not pay full amount, offer them something less but still decent. They have bought the debt for around 10% of the face value, so will be open to offers. They can cause more credit file damage if they sue you so don't let that happen if possible. The defaults will expire 6yrs after they are issued.

[Stark3000]

The damage is being caused by the defaults and there is almost nothing you can do about those. The account is still well within 6 years limitation so unfortunately I'd be highly surprised if they 'forgot' about the account.
Link Financial are among the more reasonable of debt purchase companies. It is also worth bearing in mind before you go paying off any more chunks - Do not pay full amount, offer them something less but still decent. They have bought the debt for around 10% of the face value, so will be open to offers. They can cause more credit file damage if they sue you so don't let that happen if possible. The defaults will expire 6yrs after they are issued.

Hi Celestine thank you for the answer

My debt is still open with lloyds bank but the card is expiring may 2022 so probably will be sold to link financial.

I would like to do something before it will be sold to them or any other credit collectors agency.

Do you suggest to pay llodys or wait for the debt to be sold?

Also if i start to make monthly repayment will my default finish in 6 years from the default date or from the date i start to repay them back?

sorry for a lot of questions but it is everything so confusing

i was trying to pm you but unfortunatelly when i try to send the text it is showing a worning that im not allowed to do it.

[Celestine]

The damage is done with the Lloyds credit card default which will drop off in 3 years anyway. Lloyds will only consider full settlement of the debt and wont remove default, so that's not ideal.
Once sold (for @10%) the new creditor will be receptive to partial settlements and you'll have gained some time to save up. The default date will remain the same.
What you MUST avoid is the new creditor suing you and getting a CCJ which will start a whole new 6yrs of credit damage. Avoiding CCJ is your only sensible goal now to minimise credit file damage.

[Stark3000]

Hi Celestine thank you for the answer

My debt is still open with lloyds bank but the card is expiring may 2022 so probably will be sold to link financial.

I would like to do something before it will be sold to them or any other credit collectors agency.

Do you suggest to pay llodys or wait for the debt to be sold?

Also if i start to make monthly repayment will my default finish in 6 years from the default date or from the date i start to repay them back?

sorry for a lot of questions but it is everything so confusing

i was trying to pm you but unfortunatelly when i try to send the text it is showing a worning that im not allowed to do it.

Hello again.
so, as far as I've understood, in my actual situation it will be a better move waiting for my credit card to expire and expect a credit collector agency to buy it soon and only after they've contacted me I could make my offer lower of the full amount of my debt (?).
are there any chance that Lloyds could sue me instead of selling my debt causing it to become a CCJ straight away even before getting to a credit collector?
I wanna sort out this situation in the best way possible avoiding it of becoming worst or paying the full amount if there're any chances.
When you say 10% you mean that if I got £1000 debt with a bank, the credit collector will only buy it for £100 and try to get from me the original amount of £1000? Can my offer be as much as the amount they've paid it for?
Thanks again for all the informations

[Celestine]

Hello again.
so, as far as I've understood, in my actual situation it will be a better move waiting for my credit card to expire and expect a credit collector agency to buy it soon and only after they've contacted me I could make my offer lower of the full amount of my debt (?). Correct
are there any chance that Lloyds could sue me instead of selling my debt causing it to become a CCJ straight away even before getting to a credit collector? Lloyds will not sue you, they don't like to 'get their hands dirty' these days. Debt sale is great for them because they can write off the 90% against profits.
I wanna sort out this situation in the best way possible avoiding it of becoming worst or paying the full amount if there're any chances.
When you say 10% you mean that if I got £1000 debt with a bank, the credit collector will only buy it for £100 Yes and try to get from me the original amount of £1000? Can my offer be as much as the amount they've paid it for? They certainly won't go that low, but offers around 40% are not unusual.
Thanks again for all the informations

When the account is sold, this is called assignment. You will get written notification of this.
You will then be contacted by new 'creditor' and they will try to ask for whole amount naturally. Lump sum settlements usually work best.
If you do not communicate or negotiate, they could move towards legal action, but they have to give you lots of warning, so there will be plenty of time to get prepared.

[Stark3000]

Hello again.
so, as far as I've understood, in my actual situation it will be a better move waiting for my credit card to expire and expect a credit collector agency to buy it soon and only after they've contacted me I could make my offer lower of the full amount of my debt (?).
are there any chance that Lloyds could sue me instead of selling my debt causing it to become a CCJ straight away even before getting to a credit collector?
I wanna sort out this situation in the best way possible avoiding it of becoming worst or paying the full amount if there're any chances.
When you say 10% you mean that if I got £1000 debt with a bank, the credit collector will only buy it for £100 and try to get from me the original amount of £1000? Can my offer be as much as the amount they've paid it for?
Thanks again for all the informations

Hello Celestine, I'm back here to get more advice if possible on above post.

During the past months I've seen my debt "disappearing" from my credit report (using Credit Karma) for a few months without any change on the score which was weird that I couldn't see it at all neither as open nor closed account. Just a few days ago I've seen a drop into score and the debt came out again but as a new credit card from Link Financial Outsourcing Ltd.
The start date looks matching the original start date of the credit card of the first lender and also date of default is the same as the previous one (Feb 2019) but on the table of the payment hystory I can see now on January 2023 another default. Not sure whats going on here. I've tried to register on the Link Financial website but they were unable to verify my details as the credit card/default is registered at my old address.
What should I do now? I don't want this to become a CCJ or anything else worse as they will send letters to my old address for sure and I won't be able to do anything. Should I call them and give my new address details?

Thanks in advance for any suggestion

[Celestine]

Hi again - thanks for updating us.

I all likelihood that will be the default 'transferring' to Link and is not a whole new 6 years starting over, because that is not correct data processing.

You could contact Link to make sure, or you could send them a SAR like we recommended you do to Lloyds earlier in the thread, however that would require you giving them your new address. You must not acknowledge the debt in this request, otherwise the 6 year limitation act 'clock' will start over.

[Stark3000]

Hi again - thanks for updating us.

I all likelihood that will be the default 'transferring' to Link and is not a whole new 6 years starting over, because that is not correct data processing.

You could contact Link to make sure, or you could send them a SAR like we recommended you do to Lloyds earlier in the thread, however that would require you giving them your new address. You must not acknowledge the debt in this request, otherwise the 6 year limitation act 'clock' will start over.

Hi Celestine , hope you are well

I was able to upgrade my home with LINK FINANCIAL, not mentioning I had a default. I received this letter after a month, which I enclosed in the post.

I was able to set up a link financial account with the ID provided in the letter , to look at what options I have, but although the email has been verified each time I attempt to log in, I can not access to my account. giving an error of 500


I do not have enough finance to pay my debt in full as the reason for my "debt" was to support my father who needed medical treatment which started in 2019 and the situation became worse during the Covid pandemic . Because of the lockdown I had to move back to my home country to support my family and was unable to catch up with the debt payments. During this time I suffered from severe depression because to help my family I had to quit my job and m This was a very forced decision as I was building a career with a solid bases here in the UK. The lock-down has been a difficult time to support my father's health and to find the necessary funds for the family, I was unemployed for two years without being able to find a stable job. This left me anxious, which still creates a lot of distress to me today, and my mental health suffers as a result.

I am now back in England and have a job , but with the price and bills increases , it is difficult for me save any money.

I have concerns that link financial may have full access to my bank details. The debt is now 4 years old and of course if I can come to an agreed arrangement, I would be more than happy to terminate this situation for the goods. Do you have any advice on taking the right steps?

Thank you for dedicating your time to my situation and addressing me on the right steps to follow