Recently entered default on very old account

[chz80]

Hi all,

I was hoping that you could give me some advice regarding a recent default which has been entered on my credit file.

The overview of the situation is this:

Back in 1999, I opened a student account with a bank I will not name (as from what I've read, some banks seem to regularly monitor internet forums) and now, twelve years later, I receiving a demand from a Debt Collection Agency for an amount they claim I owe to bank X relating to my old student account.

Now, the thing is - the last time I used this account either to withdraw money or to pay for goods was approximately 2002. I stopped using the account because I had another account with another bank. As far as I was aware, the account with bank X was zero balance (which, as I recall, was another reason why I no longer used the account).

Anyway, I just forgot about the account and wasn't aware it still existed. That is until I received a letter from a DCA asking me for £1500+!!

I have moved house three times since 2002, but I'm sure I advised this useless banking institution of my first change of address (which is my parent's current address) as I have managed to locate statements addressed to that house from the bank regarding a Credit Card I had with them (another account I had with bank X at the time).

I also spoke to someone in branch who said she could see the fact that I had a credit card with them (so surely on their systems they could have found my parent's current address to correspond with me!?).

She also told me that the account was overdrawn, and furthermore - over the overdraft limit. I don't even know how it became overdrawn!

Now, I haven't received ANY correspondence from the bank in question regarding the student account and have only recently been sent a letter from a DCA who actually wrote to me at my parent's address. It seems as though the bank made no real attempt to contact me, but passed my details onto the DCA who then bothered to check my credit record and find a linked address.

What's annoying about this is that they (bank X) have registered a default on my credit report and this has now ruined an otherwise very good record! What's ALSO annoying is they allowed the account to go unacknowledged for around ten years and only closed it in August of this year whilst also seemingly whacking on charges in the meantime!

This doesn't seem fair.

The big problem is - I don't have a clear picture to how this debt came about!! I've been given no evidence apart from a demand to pay. I've written to ask for proof by the way of an SAR, but so far I've been sent nothing! It's now almost 40 days since I sent the SAR.

I really don't want the default notice on my record as I'd like to buy my own property next year! It's taken me years to build up a good credit record and this has destroyed in with one, unfair blow!

Now, I believe this debt could be statute barred, but after reading around it seems unclear as to exactly when an overdrawn account becomes statute barred.

The questions I have are this:

1) Do you think that this IS statute barred? NB: I initially panicked and sent a letter to the debt collection agency stating that this is statute barred under the Limitations Act etc etc and they haven't contacted me since. I am therefore assuming it is SB.

2) So, if it is statute barred, is this grounds to have the default removed?

3) Also, is it fair that it's taken them so long to finally close the account and register a default!? The account was clearly inactive and seemingly over it's overdraft limit for quite some time - surely they should have closed the account a long time ago?
Isn't registering a default on the account and dating it as August 2011 going against the ICO guidelines of the fair time-frame for registering defaults?

If it makes it easier to analyse, here are the details registered:

Start Date: 01/08/2010 (I'm not sure where they got this from!)
Default Date: 18/08/2011
Date Updated: 30/10/2011

4) Do you have any general advice on how I should approach this?

FYI - I asked the CRA to remove the default, but was simply told that it would stay on my record and that I'd need to contact the lender directly.

Thanks in advance for your advice and please do keep up the good work with this site.

Many Thanks

UPDATE 23 July 2013:

Well after two complaints to Lloyds, a final response, and a hilarious, but frustrating telephone debate with one of their "Customer Service" reps, I took this to the FOS who found in my favour and instructed Lloyds to remove the default and write off the alleged debt.

I can't say how grateful I am to everyone who gave me advice, especially, of course - Niddy.

I'd also like to make a special mention to the patronising customer service rep who insisted the (alleged) debt was kept alive by them writing to me!! Haha! Clearly not, huh!?

[Miss Molly]

Re: Recently entered default on very old account

They cant just pluck a date out of thin air. The Default date will be the first time you missed a payment when it became due.

Start Date: 01/08/2010 (I'm not sure where they got this from!) - This is probably the date that it was passed on to the DCA to collect or was Assigned
Default Date: 18/08/2011 - This to me suggests that monies were being paid into the account and then stopped - but you say this isnt so
Date Updated: 30/10/2011 - The DCA then updated the CR file

I think you need to establish when was the last date you made any payments toward the debt.

[Susie]

Re: Recently entered default on very old account

Did not want to read and run and someone better than me will be along to help, but until they do I would say don't speak to anyone about it as it does appear to me that it will be statute barred. It sounds as if it has been sold to a DCA and they have registered the default.
Hopefully someone will point you to the right letters to send to get shot of both the DCA and the default, I think the default has to be rtegistered within a certain timeframe and 9 years later is rather a long time!

[Never-In-Doubt]

Re: Recently entered default on very old account

You need to ensure it is statute barred first, so as Miss Molly says, establish the last time you paid or wrote to the bank/dca.

If it was definitely 100% over 6 years ago then you simply raise a dispute with the CRA's explaining this account was defaulted many years ago and therefore should be removed, they will in turn go to the company, they'll refuse to which you will then complain to the ICO - it's pointless sending a SAR and that in yet, which would then establish when the default was actually issued, as you do that at the end after the ICO have looked at things, unless you have no idea of the actual default date.

Point is, they need to default you within a few months of the debt being defaulted, ie missed payment. Yea, there is guidelines now using the amended OFT guidelines but for something that happened years ago unless you have a previous copy of your credit file that may show the last registered default, then you may need to complain after the SAR - but right now establish date last acknowledged before writing anything to anyone....

Edit
\\\If you've already sent a SAR then best of luck, I wouldn't have done this however lets see what they send///

[MrsD]

Re: Recently entered default on very old account

can you be a bit more forthcoming about which bank it is and also which DCA, some specialise in buying SB debt and then trying to terrorise you into paying. Did you initially send a 'prove it letter"?
are all the details on the letter you received corect, ie could this be someone else"s debt with a similar name, DCAs are not adverse to hanging debts on whoever happens to be handy.

Did you send the SAR recorded delivery and have they signed for it?

[Never-In-Doubt]

Re: Recently entered default on very old account

some specialise in buying SB debt and then trying to terrorise you into paying.

Not the Leeds Losers that are Lowells, surely you don't mean them do you?

[MrsD]

Re: Recently entered default on very old account

could be one of quite a few candidates, but this does smell a bit like them................

[chz80]

Re: Recently entered default on very old account

All,

Thank you so much for your replies so far

Here are my answers to some of your questions.

Re: the last payment date. I've 100% definitely not used this account for over six years and neither have I paid any money into the account or acknowledged it. In fact, I'm pretty sure that it has been almost a decade!!

Re: The DCA - it was Apex Credit Management. However, they never registered the default against my name; it was the bank.

Re: The SAR - this has been received and signed for. I have the proof of receipt.

So do you all think that the default should have been registered many years ago?

Thanks again.

[Never-In-Doubt]

Re: Recently entered default on very old account

All,

Thank you so much for your replies so far

Here are my answers to some of your questions.

Re: the last payment date. I've 100% definitely not used this account for over six years and neither have I paid any money into the account or acknowledged it. In fact, I'm pretty sure that it has been almost a decade!!

Re: The DCA - it was Apex Credit Management. However, they never registered the default against my name; it was the bank.

Re: The SAR - this has been received and signed for. I have the proof of receipt.

So do you all think that the default should have been registered many years ago?

Thanks again.

The default should have been added within 6 months of you missing a payment, thus the DN date should be + 6 years ago as well.

I would therefore send a query to the CRA and demand removal based on the fact the account originally defaulted on XX date.

To establish that XX date, you need to await the SAR then hunt the DN - if this is the first DN we can get it wiped via ICO/FOS based on it being unrepresentative and unreasonable due to the age of the actual account and last payment made.

Don't worry, sit tight and await your SAR - then hunt out the s.87 DN and let us know the dates on it... if they don't have one, fine 0 you can still win this.

[chz80]

Re: Recently entered default on very old account

The default should have been added within 6 months of you missing a payment, thus the DN date should be + 6 years ago as well.

I would therefore send a query to the CRA and demand removal based on the fact the account originally defaulted on XX date.

To establish that XX date, you need to await the SAR then hunt the DN - if this is the first DN we can get it wiped via ICO/FOS based on it being unrepresentative and unreasonable due to the age of the actual account and last payment made.

Don't worry, sit tight and await your SAR - then hunt out the s.87 DN and let us know the dates on it... if they don't have one, fine 0 you can still win this.

Thanks again NID. So all this still applies to a current account overdraft? Just wondering as obviously you don't necessarily make payments to an overdraft (although I suppose you should, and possibly would be required to, if it's over the limit).

[Never-In-Doubt]

Re: Recently entered default on very old account

It won't matter, if you've not used the account in say a year and it's overdrawn then at the time they renew the OD they would normally get in touch etc and request repayment - if no reply, after 3-6 months they should be defaulting you.

I suspect this bank may be HSBC as they do think they can add defaults whenever they like, I am also in the process of arguing with them. If not, please do tell me the bank name - don't worry, they'll soon know you got help here cos we'll sort you a letter to them if it comes to it and they'll know from the content it's from here (most banks see a lot of our templates you see)

[Riz]

Re: Recently entered default on very old account

I suspect this bank may be HSBC as they do think they can add defaults whenever they like

Lloyds TSB have been doing the same to quite a few people in the latter half of last year as well.

[chz80]

Re: Recently entered default on very old account

It won't matter, if you've not used the account in say a year and it's overdrawn then at the time they renew the OD they would normally get in touch etc and request repayment - if no reply, after 3-6 months they should be defaulting you.

I suspect this bank may be HSBC as they do think they can add defaults whenever they like, I am also in the process of arguing with them. If not, please do tell me the bank name - don't worry, they'll soon know you got help here cos we'll sort you a letter to them if it comes to it and they'll know from the content it's from here (most banks see a lot of our templates you see)

It's not HSBC, I'm afraid - it's Lloyds TSB. I'm truly amazed how they think they can just suddenly register a default after all this time!

[chz80]

Re: Recently entered default on very old account

Lloyds TSB have been doing the same to quite a few people in the latter half of last year as well.

Hmm, is that right?! Well, as mentioned above, I'm one of their victims!

[Never-In-Doubt]

Re: Recently entered default on very old account

Lloyds TSB have been doing the same to quite a few people in the latter half of last year as well.

Yep - forgot about those buggers - and it proves you were right

God I hate that bank