LLoyds default for current account help

[tom_rad]

Hi everyone

This is my second post on this site and wanted to start with some great news that after sending Lowell debt collection agency an unenforceability letter they closed my account and removed the default from my credit file: D

I now only have one default left on my credit file which is really bugging me, i set up a current account with Lloyds tsb in 2009 but after they only offered me a basic one which could only be used at Lloyds atm's, i never used it (it had absolutely no credit or overdraft). I changed address so never received any correspondence from Lloyds but turns out it was in £70 arrears, i received a letter at my new address from debt agency in November 2010 and was horrified but settled the debt straight away although i now know a default was issued one month previous .

It’s only for £120 and although it’s now settled it’s still a big negative on my file, is there any letters or correspondence i could send to try and have this removed

Any help what so ever greatly appreciated

Thanks

[Never-In-Doubt]

Re: LLoyds default for current account help

you'll struggle sadly, have you asked the question as to how you got into arrears when you never used it...?

More details please

[tom_rad]

Re: LLoyds default for current account help

hi niddy

thanks for the fast response, yes i questioned it at the time and although I haven't got access to the details any longer I believe it was my fault, a direct debit I set up but never cancelled, was wondering wether it could be questioned or possibly challenged. I never appreicated the importance of my credit file when I was youngster

[Never-In-Doubt]

Re: LLoyds default for current account help

hi niddy

thanks for the fast response, yes i questioned it at the time and although I haven't got access to the details any longer I believe it was my fault, a direct debit I set up but never cancelled, was wondering wether it could be questioned or possibly challenged. I never appreicated the importance of my credit file when I was youngster

Sadly if it is a factual chain of events then they will no do anything - the default status will stay. However if you say you paid within a month, then it'd never be defaulted or are you saying you paid within a month of finding out?

As I say you'll struggle to get anywhere - they can leave the entry if it was factual, and the fact you moved houses shows it may well have been.

One default won't affect you that much after it's 3 years old so if you got defaulted in October 2010, by November this year few places will actually see the default, let alone take notice of it.

[tom_rad]

Re: LLoyds default for current account help

Sadly if it is a factual chain of events then they will no do anything - the default status will stay. However if you say you paid within a month, then it'd never be defaulted or are you saying you paid within a month of finding out?

As I say you'll struggle to get anywhere - they can leave the entry if it was factual, and the fact you moved houses shows it may well have been.

One default won't affect you that much after it's 3 years old so if you got defaulted in October 2010, by November this year few places will actually see the default, let alone take notice of it.

I paid as soon as I received a letter to my new address but the default had been issued one month before I made this payment, ok then that's good news, thanks for your time

[Never-In-Doubt]

Re: LLoyds default for current account help

I paid as soon as I received a letter to my new address but the default had been issued one month before I made this payment, ok then that's good news, thanks for your time

Yea but that's not enough, you should have given them your address but the fact you didn't is why they probably wrote to the old address. The problem you have is that you DID move and DIDN'T give your forwarding address - so how does it look to the bank? Hence they will not usually entertain default removal.

Forget when you paid, that isn't material unless you paid within a month of missing a payment then we'd be able to argue based on it not being correct to default within a month or whatever.

To be honest, just forget it - it won't affect you that much unless you want a mortgage..

[Riz]

Re: LLoyds default for current account help

As Niddly is saying, some defaults are debatable in either their fact or the when they have been applied, but I honestly don't think yours is either.

A default represents a breakdown of the normal commercial relationship between the creditor and debtor. Sometimes what constitutes a breakdown is very debatable. Leaving a creditor without a new address and forcing them to trace via debt collectors is about as clear cut a default as it gets IMHO (short of you going insolvent).

[tom_rad]

Re: LLoyds default for current account help

As Niddly is saying, some defaults are debatable in either their fact or the when they have been applied, but I honestly don't think yours is either.

A default represents a breakdown of the normal commercial relationship between the creditor and debtor. Sometimes what constitutes a breakdown is very debatable. Leaving a creditor without a new address and forcing them to trace via debt collectors is about as clear cut a default as it gets IMHO (short of you going insolvent).

thanks for clearing this up, i take it you agree this will not effect me much after the 3 year period,with the fact its settled (although in default) unless i apply for a mortgage?

[Riz]

Re: LLoyds default for current account help

These things are always just general rules of thumb, but yes, after 3 years an paid default is likely to be outweighed for most lenders by any positive data, payments history etc that you have built up since then.

[Richard999]

Re: LLoyds default for current account help

Unless you want a mortgage !

[Richard999]

Re: LLoyds default for current account help

If you want to buy a shed to live in with some land positioned beneath it and you have a default from years ago because you forgot to pay your phone bill you will need a deposit of 99.9 per cent and they will lend you the balance !

[Never-In-Doubt]

Re: LLoyds default for current account help

To be honest, just forget it - it won't affect you that much unless you want a mortgage..

Unless you want a mortgage !

Yea we established that one

The CRA's seem to hide behind these dodgy DN's they load to the CRA's to hold us to ransom, so really we have the attitude here that to best utilise UE you're best ensuring that you don't need credit for at least 6 years - accept that and UE is ideal for you.