Halifax Default

[lauz86]

Hi

I have 2 account with Halifax that defaulted in 2011. I have recently read that if the accounts are made up of a lot of charges then the default can be removed, is this correct?

Basically on the first account I had a £100 overdraft that went up to £665 with charges added & on the second account I had a £900 overdraft that went up to £1,730 with charges added. The accounts have been passed on to Lowell & I have been paying them £5 per month the 1st account balance is now £445 & the second is £1,200

In the few years before the default was placed in March 2011 I had paid them over £4,000 in charges but they kept adding charges on top of charges until it got to the point where the money I was paying each month was less than the charge amount being applied, it all got on top of me, they were taking my wages out of the bank so I was left with little to no money & I had come so close to repossession of my home on 2 separate occasions as I was unable to make my monthly mortgage payments, luckily a family member came to the rescue on both occasions & helped me to keep my home. I changed banks so they could no longer have access to my wages & started to pay Lowell £5 per month for each account & have got myself in to a better position financially

I didn't even think to try & get the defaults removed as they were a bank & I assumed I wouldn't have a leg to stand on but now I am being told different. Is it even worth trying to fight them & get the defaults removed? or would I be wasting my time?

Any input is appreciated

Thanks in advance

[nemesis45]

Re: Halifax Default

Hi

I have 2 account with Halifax that defaulted in 2011. I have recently read that if the accounts are made up of a lot of charges then the default can be removed, is this correct?

Basically on the first account I had a £100 overdraft that went up to £665 with charges added & on the second account I had a £900 overdraft that went up to £1,730 with charges added. The accounts have been passed on to Lowell & I have been paying them £5 per month the 1st account balance is now £445 & the second is £1,200

In the few years before the default was placed in March 2011 I had paid them over £4,000 in charges but they kept adding charges on top of charges until it got to the point where the money I was paying each month was less than the charge amount being applied, it all got on top of me, they were taking my wages out of the bank so I was left with little to no money & I had come so close to repossession of my home on 2 separate occasions as I was unable to make my monthly mortgage payments, luckily a family member came to the rescue on both occasions & helped me to keep my home. I changed banks so they could no longer have access to my wages & started to pay Lowell £5 per month for each account & have got myself in to a better position financially


I didn't even think to try & get the defaults removed as they were a bank & I assumed I wouldn't have a leg to stand on but now I am being told different. Is it even worth trying to fight them & get the defaults removed? or would I be wasting my time?

Any input is appreciated

Thanks in advance

Hi welcome to LB

I think what have read maybe from the Information Commissioners Office Technical Guidance on Default 2014 which says " If a default sum is made up solely of charges without which (charges) the account would not have defaulted, no default should be placed". This has no retrospective effect I think.

Meaning the sum shown on a default notice or a demand for immediate payment in full must be made up of charges alone.

This situation should have been dealt with earlier, perhaps by asking the bank to freeze charges and interest whilst you reduced the outstanding balance.
The defaults however I think are properly recorded and will be removed on the 6th. Anniversary of the default date.
You are possibly quite fortunate here some banks Barclays for example will put you in this situation in an arrangement to pay rather than defaulting the account meaning that the debt can remain on file for up to 12 years.

nem

[lauz86]

Re: Halifax Default

Hi welcome to LB

I think what have read maybe from the Information Commissioners Office Technical Guidance on Default 2014 which says " If a default sum is made up solely of charges without which (charges) the account would not have defaulted, no default should be placed". This has no retrospective effect I think.

Meaning the sum shown on a default notice or a demand for immediate payment in full must be made up of charges alone.

This situation should have been dealt with earlier, perhaps by asking the bank to freeze charges and interest whilst you reduced the outstanding balance.
The defaults however I think are properly recorded and will be removed on the 6th. Anniversary of the default date.
You are possibly quite fortunate here some banks Barclays for example will put you in this situation in an arrangement to pay rather than defaulting the account meaning that the debt can remain on file for up to 12 years.

nem

Hi Nem,

Thanks for your reply. I knew it was a long shot but thank you for clarifying for me. I'll just wait until in drops off my report in 18 months. Do you know if it will look better on my credit report if I try to repay the balance now & get I marked settle or should I just stick to my £5 per month?

[nemesis45]

Re: Halifax Default

Hi Nem,

Thanks for your reply. I knew it was a long shot but thank you for clarifying for me. I'll just wait until in drops off my report in 18 months. Do you know if it will look better on my credit report if I try to repay the balance now & get I marked settle or should I just stick to my £5 per month?

Hi,
Then entry will still remain if you pay the balance in full but will be marked " satisfied" if you van pay it off the effect on credit profile will not be dramatic as it's still a defaulted account.

nem

[sloane82]

Re: Halifax Default

First of all whoa how much charges Halifax are allways bad on their charges. Have you wrote a letter to Halifax regarding these charges?. Also contact the FOS Financial Ombudsman Service regarding this. Also contact National Debtline. By Law Lowell can only Charge you £1 as you are in financial hardship.