@asklloydsbank Lloyds TSB defaulted account without issuing a default notice

[foxyred]

Hi all

 

Lloyds has defaulted an account that without ever issuing a default notice. The default date was 9/2/12 and the last statement was sent on 2/2/12. I have never received any letters from DCAs or solicitors concerning the account and the next thing I know I'm defaulted.

 

Has anyone else had this happen to them? What can I do about it to get this sorted.

 

Any help appreciated please. I think they're just getting back at me for the charges I claimed back years ago.

 

Just to add, at the end of the last statement it says that fees for period 4/2/12 to 1/2/12 will be debited at close of business on 1/3/12. Would they have said this if they intended to default the account?

 

Thank you.

[car2403]

A Default notice is not required to default you - the key being the capitalisation, Default and default.

 

A Default Notice is a notice in a prescribed form that is required to be issued to a debtor when enforcement is required as defined in the Consumer Credit Act and subsequent law.

 

A default is a breach of an agreement to repay a debt in a specific way.

 

What is this debt for?

[foxyred]

Hi Car

 

The debt is for an overdraft that I went over the limit on. I was under the impression that Lloyds would have had to give warning before adding a default on my credit file. Am I wrong then?

[car2403]

Yes, they should, because an overdraft is a CCA regulated debt. The problem with this is getting it removed, as the overdraft has been used and you haven't paid it, therefore the debt is overdue and you are in default of payment. Removal of Defaults isn't an easy thing to do, unless you can demonstrated that any of those things recorded are incorrect and inaccurate under the Data Protection Act, as the CCA isn't entirely clear on your rights and you may end up relying entirely on the DPA.

 

Did you receive a termination notice? It would be worth sending a Data Protection Act Subject Access Request (templates available in the library) and ask for data relating to your Account to see

[foxyred]

Hi Car

 

Thanks the quick response. No there was no termination notice at all. I have only ever received the normal bank statements from Lloyds. I have had default sums added to the statements but nothing to say that I have x amount of days or else they will terminate my account.

 

The last statement that I received on 2nd February made no indication that they intended to add a default to my records or anything. I keep my letters all filed accurately and there is absolutely nothing to suggest that any action would be taken.

[foxyred]

Just a thought, would it not be easy for them to just send a copy of the information to me in the SAR even though they didn't originally?

[car2403]

Yes. The requirement is to have sent a Termination Notice to end an overdraft agreement to allow them to default you. You're attempting to find out, from their records, whether a TN was sent. You don't need to know if you received it, but unfortunately the legislation doesn't require you to have received it for them to take that action against you as they have. If you can show no TN was sent, then you will have a case for removing the default, but there would be nothing to stop them sending a new TN, now, and re-adding the default on your CRA file

[foxyred]

Ok thanks, I'll get on it tomorrow

[rosencrantz]

Hello, I am having a very similar issue and am glad to have found this post. I had a career development loan with Lloyds TSB and while I'd missed several payments I had finally saved enough cash to pay most of the outstanding balance off. I wrote a letter to Lloyds TSB collections on the 9th March detailing that i would like to offer 86% of the outstanding balance as a full and final settlement. On 17th April I received this letter from SCM Solicitors dated 28th March.

 

(I cannot post a html link to the file but it basically says I have 14 days from receipt of the letter to pay, and that paying will be updated on my credit file but the Default will remain.

 

As soon as I received it I called the bank. Apparently they didn't get my letter, have passed my account to recoveries, closed it and given me a default.

 

I immediately borrowed the rest of the money I needed to pay the debt off in full - but apparently the Lloyds TSB Recoveries Call centre in India are telling me they have put a default on my Credit file for the next six years. The first call centre operative told me the default was applied in 2009 (i checked credit report - this is not true) the second told me the default was applied on the 11th April 2012 - I can't seem to get a straight answer, and whilst they promised to call me back yesterday they never did.

 

Meanwhile I had a standard statement from Lloyds TSB Collections sent to me on the 12th April with no mention of a default or my account being terminated.

 

I have called the National Debt Line who don't seem to think I've been issued a default or an actual default notice. I've checked my credit files which also don't seem to have a default registered.

 

I'm really confused and wondered if anyone with more experience could offer me some help and guidance?

Edited April 20, 2012 by rosencrantz
made sentence clearer

[cwab_sticks]

A Default notice is not required to default you - the key being the capitalisation, Default and default.

 

A Default Notice is a notice in a prescribed form that is required to be issued to a debtor when enforcement is required as defined in the Consumer Credit Act and subsequent law.

 

A default is a breach of an agreement to repay a debt in a specific way.

 

What is this debt for?

 

Hi,

Sorry to hijack this thread but I am in a similar position. I do have another thread but this statement is quite appropriate to my situation. I have not received a default notice, but LTSB have stated they have Defaulted the account & are requesting full amount (so I assume terminated although no correspondance has been received to confirm this).

 

If I had received a DN A friend would have paid the arrears for me to prevent the Default onto my credit file.

 

I have not received a default notice and therefore was unable to 'make good the arrears'.

 

Where do I stand with this? I have asked this question on my other thread but I haven't really had a direct answer to this question - apart from reclaiming etc, but the reclaiming will take a while and I am concerned about my credit file in the short term as I do not need an unnecessary Default on my credit files.

 

How can they Default if they haven't issued a default notice? Or if Royal Mail failed to deliver?

 

Is it the same situation as per the TN as quoted from another post within this thread "but unfortunately the legislation doesn't require you to have received it for them to take that action against you as they have. If you can show no TN was sent, then you will have a case for removing the default, but there would be nothing to stop them sending a new TN, now, and re-adding the default on your CRA file"