Bank penalty fee for debt, forgotten account

[leukonoe]

Hi,
I'm student from Poland, two years ago I was working in UK, in London keeping my savings on a regular bank account in Lloyds. When I was leaving UK I transferred all my money and unfortunately, before I closed it, service "ID Aware" that I activated once, automatically took more money than I actually had on this account. Then, as it turned out I started paying huge charges for illegal debt, like 5Ł per day. Unfortunately, because I got robbed in UK and I had ID aware I wasnt able, to settle things from Poland. They required some kind of security code, which they did send me, but to my old, London address, so no one could really help me with that. After a year my account became frozen, so no one from Lloyds as I'm calling, can help me and tell me what's going on and how much do I owe, and what can happen. Now, as I'm physics&matematics student I have to go for few weeks to UK for scientific practice, and I'm scared of what can happen. I don't have any regular income and no such savings to pay what will probably be around 700Ł. Could you tell me what can happen and what can I do?
I'm panicked and shocked and seeking help wherever I can find such.

[FlamingParrot]

Re: Bank penalty fee for debt, forgotten account

Hi and welcome!

First of all, calm down! I have no idea about Poland but, in the UK, debt is a civil matter, being in debt is not a criminal offence, so no-one can do anything to you for being in debt, you have nothing to fear, no-one will alert them to your presence in the UK.

The worst thing a creditor could do is obtain a CCJ against you. They would have to issue a claim and would send it to the last address they had. If you don't respond with a defence, they would obtain default judgment against you. This would only affect you if you intend to come back to live in the UK and obtain credit in the future, such as a credit card, loan or mortgage, the CCJ would stay on record for 6 years then disappear.

If you don't live in the UK, there isn't much they could do even if they obtained a CCJ. If you're only coming for a few weeks, then there is nothing to worry about! :thumb:

[leukonoe]

Re: Bank penalty fee for debt, forgotten account

Thank you very much for your reply.

I have couple of questions more. When I talked to somebody from Lloyds on the phone, I was told, that they can pass my debt to some claim agency. What would happen then, is my debt will grow bigger because of the claim agency costs, and then it would be cost-effective for them to claim the amount due even from here (Poland). So, you say that it isn't correct, am I right?

Right, now, what does it mean that CCJ would stay on record for 6 years then disappear? If I come to live in UK in 10 years I still won't be able to get a loan, will I?

[FlamingParrot]

Re: Bank penalty fee for debt, forgotten account

Thank you very much for your reply.

I have couple of questions more. When I talked to somebody from Lloyds on the phone, I was told, that they can pass my debt to some claim agency. What would happen then, is my debt will grow bigger because of the claim agency costs, and then it would be cost-effective for them to claim the amount due even from here (Poland). So, you say that it isn't correct, am I right?

They probably meant a debt collection agency. They wouldn't pursue you in Poland or anywhere outside the UK so nothing to worry about.

Right, now, what does it mean that CCJ would stay on record for 6 years then disappear? If I come to live in UK in 10 years I still won't be able to get a loan, will I?

You don't have a CCJ to start with, I was just saying, in the event they got one, it would stay on record ONLY for 6 years. In 10 years time there would be no trace left of it.