Lloyds Overdraft Default

[nixdas]

Hi Guys,

I came across this forum and can see that some people have had some really great advice and wondering if anyone can help me out.

Basically I had a Lloyds TSB student account during university and at the start of 2010 I requested for my overdraft to be extended from £1500 to £2000 online. This was accepted and around March/April I was sent a letter stating that my overdraft will be reduced back to £1500 in July but it was suppose to be extended til September.

I rang their customer services and the agent confirmed that the letter was incorrect and it is valid til September. All my correspondence gets sent to my parents house so when I came back in July, my account was in arrears and I had letters to pay my overdraft in FULL!

So I was on calls to their customer services over and over again, trying to get an explanation on why my overdraft had been decreased and also why I was advised incorrectly.

They kept trying to get me to sign up to a repayment plan but they wouldn't provide me with any information on what the interest & charges are.

I did however receive a letter from their customer service confirming that I was advised incorrectly about when my overdraft would expire but because I did not credit this account for a number of months, they could not help me. I must admit I had another student account with Halifax which is why never credited it for a number of months.. stupid immature mistake. I am trying to dig out this letter.

Also, I got the money from a friend to pay it off and when I rang on the last day, they said that my account had already gone to collections. It went to the Debt Collection agency and I paid the balance off over 6 months instead of borrowing the money off my friend.

I guess I was frustrated that if I was informed with the correct information, then I would have put my account back into credit or within my actual limit which wouldnt have led to this. I know I should have signed up to repayment plan but it was frustrating not knowing what I am signing up to. I kind of regret sticking to my gun because then I may not have got a default on my account. I know this default will affect me getting any sort of credit or a mortgage so would like to get this removed if possible

Can you guys help? I was going to send a letter but thought I would get some advice first.

Regards,
Nix

Update: I found the letter from Lloyd's Customer Services stating that I was told the wrong date.

[nixdas]

Re: Lloyds Overdraft Default

Can anyone provide me with some advise or guide me into the right direction of what steps to take?

[Never-In-Doubt]

Re: Lloyds Overdraft Default

Hiya

is your account now with Halifax then, ie you're just in arrears with Loyds? It is the same group so they will utilise Right of SetOff as well....

You need to sort this, how much were you overdrawn and how much is now owed? If anything just write in and set up a payment plan..

[nixdas]

Re: Lloyds Overdraft Default

Hi Never in Doubt,

I was overdrawn by £493. So my overdraft was reduced to £1500 from £2000. It went to collection agents Moorecraft and I have now paid it and it is settled on my credit report. I still have my account with Halifax which is overdrawn but a lot less and hopefully should be cleared in the coming month.

This was back in 2010 and at the time they did want me to sign up to a payment plan which was fine but they couldn't send me in writing what the charges and interest would be for the payment plan.

What can I do to get this default removed? Any help would be appreciated.

[Never-In-Doubt]

Re: Lloyds Overdraft Default

I'd suggest you first write to the bank and formally complain and demand the default is removed as it was never your fault, then I'd look to complain to the FOS. However that said, the fact this happened 4 years ago means there are only 2 years left of the default to run - you might not get resolution before the default auto drops off so it's a question of whether it's worth fighting or just leaving it to go....

[nixdas]

Re: Lloyds Overdraft Default

That's Never In Doubt. Well ideally I wanted to get on the property ladder next year so I would like to fight it. No harm in trying right? Are there any templates letters I can use?

What is the actual process?

Thanks
Nix

[Never-In-Doubt]

Re: Lloyds Overdraft Default

No templates no mate, you need to first write a detailed explanation of what happened - then send it in, and if the bank refuse to help then go to the FOS.....