Bank charges Tried to pay Now i have a DEFAULT on my file Help

[Missmoo]

Ill start from beginning,,,,

I had been struggling with debt, So I called stepchange, who advised me I went on a debt relif order. I decided not to and tackle them myself...
Anyway they also advised that if I paid monthly for a bank account, to open up a simple current account that costs nothing.

So I did.

My old bank account that I paid monthly for kept going overdrawn, so I called up to cancel my account and I was told I couldn't! So here I was transferring £9.95 a month every time I saw it went overdrawn Also struggling to do so as I was paying off other debts,.

Anyway, Over time I owed this particular account £20.00.
I went to transfer the £20 via online banking and saw that the account wasn't there.
I phoned up LLOYDS to pay off the account, I was passed from collections to recovery with no Joy!
I went in branch and said I would like to pay the £20 before it may become a default on my account, The store then told me to call Lloyds again and pay that way.

Back to square one!

I phoned Lloyds up again whilst outside Branch sat in my car.... They said to me again I couldn't pay the amount owd as the account had been closed on the 11 December 2014?

I advised that I had tried to pay the account off Before the account was closed with no joy.

I went into Store with my phone and the lady on the phone, I passed my phone through the counter for them to advise me on what to do,.

They said that if I sent a chq to the following address with a recorded delivery letter stating what happened that everything would be clear and told me I wouldn't get a default on my account

3 Weeks now with No reply from LLOYDS I went onto my credit file and BAM --- DEFAULT of £20.00 Just been added!!

Where do I stand? I am utterly exhausted form the amount of communication I've made to Lloyds,

They have damaged my credit file through no fault of my own I find this very unfair

[leclerc]

Re: Bank charges Tried to pay Now i have a DEFAULT on my file Help

Is it a packaged account? Do you benefit from a packaged account, ie travel insurance/care insurance? Why did you take this out?

Am not sure on the stepchange advise either.

Did you contact the bank to state that you were struggling with bills and debts?(no it's not obvious that they would know since most of their systems are automated)

[Missmoo]

Re: Bank charges Tried to pay Now i have a DEFAULT on my file Help

Hi Leclerc

Thanks for the response,

Yes is a package account, And no I don't benefit from this, When I called to cancel I explained That I was struggling with finances. And still they said I could not close the account.

I took this out because I was told my credit rating would improve with this account. when really its made it worse!

Thank you

Miss Moo

[leclerc]

Re: Bank charges Tried to pay Now i have a DEFAULT on my file Help

Hi Leclerc

Thanks for the response,

Yes is a package account, And no I don't benefit from this, When I called to cancel I explained That I was struggling with finances. And still they said I could not close the account.

I took this out because I was told my credit rating would improve with this account. when really its made it worse!

Thank you

Miss Moo

Did they go through the benefits of the account with you?

The bit in bold is, in my personal opinion, misselling of the account.

[Missmoo]

Re: Bank charges Tried to pay Now i have a DEFAULT on my file Help

I wasn't Told the benefits of the account, I wasn't told I could get phone insurance, Neither RAC Or the AA Roadside assistance, I wasn't told about any of it. I only found out when I typed in google silver account with Lloyds

[nemesis45]

Re: Bank charges Tried to pay Now i have a DEFAULT on my file Help

Your approach in the first instance should be a Formal Complaint to the bank ( find the name of a director) and address the complaint to that person
the bank has 56 days to fully investigate and respond.

It is my opinion that a default for £20.00 is manifestly unfair whatever the circumstances, this should be a basis for the complaint together with the banks inefficient handling of the account.

nem

[leclerc]

Re: Bank charges Tried to pay Now i have a DEFAULT on my file Help

Could you have benefitted from them? Did you own a car? Were you already in financial difficulties when you took on this account?

When you called to close the account did they even suggest that you could downgrade the silver account to a normal non fee paying account?

Did you have any arrears on rent/mortgage, utilities? Did the bills get paid from the account with Direct Debits? Were any of those DD's returned unpaid due to financial issues?

Was there a cause for the Financial difficulties, ie less overtime, unemployment, new baby?

[Missmoo]

Re: Bank charges Tried to pay Now i have a DEFAULT on my file Help

Nemises45 - Yes it totally unfair right? Its literally sending me to tears as I feel like LLOYDS have treated me so unfair! That's great! I shall Start Typing Up A complaint, Thank you.

LecLlerc - I dont think anything really applied to me! I was doing it for my credit rating. No Didn't own a car then, I had a company car at the time, I had a phone But also that was company's!
When I called to cancel - all I got was Sorry Maam we cant close your account. and no I wasn't offered an account that I could downgrade as such and not pay a fee.

All My direct Debits where paid and up to date although I had baliffs and people chasing me for money due to payday loans (Now all paid off with a f&f settlement)

I was going through a real bad time, My nephew of 2 had just been diagnosed with cancer, My Father had a heart attack, and I at the age of 25 was left to run the business, my partner had just left me, Struggling to pay rent that's why I got payday loans out.

Ive explained this to LLOYDS and they just have no sympathy atall! Because it hasn't happed to them they don't understand! And now being hit with a default for the £20.00 That I've actually paid recorded delivery sends me mad!" Especially because one day this wont help if I where to apply for a mortgage.

[nemesis45]

Re: Bank charges Tried to pay Now i have a DEFAULT on my file Help

My you are having a rough time!!
Get the Formal Complaint off asap.
Then is Lloyd still fail complaints to the regulators can be ,made.

nem

[leclerc]

Re: Bank charges Tried to pay Now i have a DEFAULT on my file Help

I agree with Nemesis about a complaint but in the part where you have said about having a rough time, your partner left you which means your income went down albeit, it is no longer a financial hardship case.

You need to put down in order what happened to you and explain the most recent conversation in regards to the default. Mention that having taken some advice you believe that the bank mislead you into taking a paid for account without going through the option of a free account and failed to ask the most basic questions to you. Look at the benefits of the account and state that the company owned the car you used, the company owned the phones you used and therefore the benefits of the account were not suitable for you.

The default of £20.00 is because of maladministration of the account both pre account issues and post that due to the advice that you were given and had followed came from the bank.

Tell us how you get on.

[Missmoo]

Re: Bank charges Tried to pay Now i have a DEFAULT on my file Help

Quick Update!!
I called LLOYDS Yesterday to get an update of the recorded delivery letter.
They decided there and then to put a complaint in, They said as it was a formal complaint they would get this resolved for me that day.
An hour after being on the telephone to them, They said that there was no way my default was being removed ect...

I told them the case is not closed, and I will be writing to the financial ombudsman, The man called Abdul who I was speaking to then hung up!! After an hour!!!

Left very angry and crying my eyes out.

This morning At work I get a phone call from LLOYDS,... I've now been awarded compensation of £50.00 With the Cheque of £22.49 that the bank wrongly wrote out for me given there advice, also with the default being taken off my account in two days!!

I could of probably got more out of them if I did write to the financial ombudsman but my default was the main thing!!

I would like to thank you both for your advice, its helped me loads with what to say.

One Happy Person.

Thanks again and I will defiantly recommending this forum!!

MissMoo

[nemesis45]

Re: Bank charges Tried to pay Now i have a DEFAULT on my file Help

Well done!!!
Happy to have been of help!!

nem

[leclerc]

Re: Bank charges Tried to pay Now i have a DEFAULT on my file Help

Great news and glad your issue has had a successful conclusion....however, please consider potential looking at the packaged account reclaiming idea