Lloyd's Bank Default

[Shery]

My mother had an current account with Lloyd's TSB back in 2005,

we then moved houses in July 2006 and

 

as far as my mum was concered she had told them about the move and closed the account.

 

She had already opened a current account with HSBC in as she wanted to bank with the same bank as my father.

 

We were then contacted at our new address sometime in late 2009 I think

and told that were owned them £214 and made this payment over the course of 3 months and that was it!

 

When last year (2013) my mother applied for a credit card and she was turned down so

 

we ordered her credit history from the 3 credit reference agencies and

everything was good and clear expect the Lloyd's default

 

which was defaulted April 2009

 

which means it will fall off April 2015!

 

Back to when we got our first letter of saying we owned then £214

we asked then what is was made up of and we were told that the account went into a overdraft of £1.94p

which then accumulated charges.

 

My mother now has a Vanquis Card with a credit limit of £1,000

which has run for over a year with a 39.9%APR all because of one unfair default!

 

Other then that her credit file is excellent with lots of finished greens and active greens!

 

Do you think I should SAR them?

Edited April 6, 2014 by citizenB

[citizenB]

So the timeline on this is that no activity on the current account since 2006.

 

The bank have been adding charges and presumably interest to those charges since that date. What type of account is it and why would they be applying charges, was there an outstanding balance - perhaps a direct debit that continued to be paid or was this one of htose accounts that you needed to pay a fee for ?

 

They did not apply a default marker to the account until 3 years later ?

 

It might be worth making a formal complant to LTSB - Head your letter FORMAL COMPLAINT - send it to the CEO at their Head/Registered office.

 

IMHO, you should have challenged the charges when they contacted you in 2009 and asked for a breakdown.

[Shery]

So the timeline on this is that no activity on the current account since 2006.

 

The bank have been adding charges and presumably interest to those charges since that date. What type of account is it and why would they be applying charges, was there an outstanding balance - perhaps a direct debit that continued to be paid or was this one of htose accounts that you needed to pay a fee for ?

 

They did not apply a default marker to the account until 3 years later ?

 

It might be worth making a formal complant to LTSB - Head your letter FORMAL COMPLAINT - send it to the CEO at their Head/Registered office.

 

IMHO, you should have challenged the charges when they contacted you in 2009 and asked for a breakdown.

 

No the account didn't have any direct debts active on it and it was an overdraft of £1.94 that got bigger with their own charges and at the time in 2009 we didn't want to make a fuss and just wanted to end but last year we realised it was on the credit file and this year we want to apply for a mortgage but can't because of this stupid default! Over household income is very good but banks look at credit files more than anything! & yeah they didn't apply the default maker until 3 years after.