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Very miffed with Lloyds and current credit file with Experian

I have honestly tried to keep this brief but if i cut out anymore I dont think it will make sense!

To give an outline;

In 2007 I had 6 accounts either defaulted or couldn’t make minimum payments as I was just out of uni and couldn’t find work. 1 account by LloydsTSB was simply made up of recurrent charges that spiraled when I couldn’t pay the first set of charges.
Eventually in 2007 I found this site, and god bless setup a DMP with CCCS and have been paying on time ever since and now cleared 2 cards completely. I have about £5k left to pay which I have managed to actually now save aside as I now have a good job, but was putting aside for a deposit for a mortgage one day.

Fast forward to now;
Just recently married and first baby on the way; so really need to consider trying for a mortgage - so I looked at my credit report for the first time again since 2009.

Most defaults have now cleared, 1 will expire next year but have just discovered Lloyds defaulted my CCard and current account in Oct 2012 last year!! None of these have been used since 2007 so they’ve now screwed my credit history for a total of12 years!!

Brief history of dealings with Lloyds;
in 2007 as advised by this site I tried to get Lloyds to default my overdraft account and Ccard so all my debts would be defaulted at the same time – they refused – so I left it as is -I never used this account or card again as I had set up a basic account with the Cooperative. The Lloyds overdraft is in fact recurrent charges that I initiated reclaiming, but subsequent test case/court ruling on charges changed things and so I stopped there - as I felt my circumstances had changed as I was now earning again.

Meantime, since the DMP was set up Lloyds kept reneging on CCCS agreement but not informing CCCS, bombarding me with letters of default notices and interest, even though I have paid them something every single month since 2007 via CCCS.

Suffice it to say I am completely miffed.:mad: The credit report shows Lloyds sold the overdraft debt to Cabot who have put it down as a double default with exactly the same default details.

  • My 1st query is:
Where do I stand with Lloyds and these defaulted debts? I have and am still making regular payments to them via CCCS which have never been late and are the amount that CCCS agreed with them. The amount even increased slightly when my wage increased. It is not the amount Lloyds started to demand when they suddenly decided the agreement had ended; when in fact my circumstances with CCCS had never changed for the past 5 years but they have been regularly paid with no late payments. I’ve written to CCCs and they say there’s nothing they can do? Can anyone advise?

  • 2nd query:
should I just pay this outstanding £5k debt off with the money I had put aside as a deposit for a mortgage? I know it will still say default on credit file and will just change to settled. What is the best option?

  • 3rd query:
is it even worth restarting my reclaim of Lloyds charges again as I have a semi decent job now and it could be said that I could in fact just pay off the debt now with the money put aside.

I hope people out there can advise what I should do next....many many thanks in advance:o

:Tp.s. the only good news out of this is the £5k set aside is made up of £2.5k of PPI i managed to reclaim from my defaulted Egg loan ...:T

Comments

  • I'm not sure I can be a complete help, but I'm in a similar situation.

    I went in to a DMP in 2007 and all my creditors (except Lloyds TSB) defaulted me. Those defaults are all ending by the end of the next month and clear from my credit file.

    However, Lloyds defaulted me in April last year. I have made an appeal quoting the Information Commissioner recommendations and that has been rejected. My only recourse is now the Financial Ombudsman.

    I had a long chat with a guy at Lloyds who listened to my appeal, but said that they had been correct in issuing a default. I explained that they had indeed made it harder for me to repay Lloyds as my financial situation is vastly improved and if I could remortgage I could repay them immediately (low loan to value on my property). But with the default getting a mortgage would be expensive and therefore I am forced to continue repaying them slowly.

    In your case, you could appeal, but my understanding is that in 2012 Lloyds defaulted a huge swathe of old accounts and are sticking to their guns, if they change one then in opens the floodgates for appeals it seems.

    Paying them would help, it would show as satisfied on your credit file, but it is still a default.

    In my case its a nuisance, My credit file now won't clear for another 5 years, but I'm not looking to finance anything.

    I did make an appeal regarding harassment from Lloyds at the time they lodged the default and interestingly this ruled in my favour and they compensated me with £50. However, I would have preferred the default to be dated 2007.

    I hope this helps in some way explain where I am, but certainly I think you should appeal.
    Unsecured debt 2008 c £45,000
    Current unsecured debt February 2016 £1,734.85
  • ejc81
    ejc81 Posts: 225 Forumite
    Tenth Anniversary 100 Posts Combo Breaker
    vladzie wrote: »
    Meantime, since the DMP was set up Lloyds kept reneging on CCCS agreement but not informing CCCS, bombarding me with letters of default notices and interest, even though I have paid them something every single month since 2007 via CCCS.

    Suffice it to say I am completely miffed.:mad: The credit report shows Lloyds sold the overdraft debt to Cabot who have put it down as a double default with exactly the same default details.

    1) Have you got the paperwork, default notices etc? When were these sent? Is your report showing defaults from both Lloyds & Cabot? Lloyds were really good at sending me default notices for the same account until I pointed out that they could only default me once :D

    2) Opinions will be different on that, personally, I would rather owe nothing & have it shown as settled so its all final.

    3) It doesn't matter what you're earning, if Lloyds screwed you over then definately claim whatever you can back as they are robbing t***s ;)
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