Two defaults on my credit file

demi60
demi60 Posts: 43 Forumite
Name Dropper First Anniversary Combo Breaker First Post
edited 22 November 2017 at 1:25PM in Credit file & ratings
Last year the Financial Ombudsman found in my favour as Lloyds bank sold a debt of £395 to Lowells in respect of a current account I thought I closed, however Lloyds kept the account open and applied bank charges.

I didn't know this until I received a demand from Lloyds for £395 I refused to pay this £395 as I switched banks a couple of years ago. After the Financial Ombudsman's decision, Lloyds sent me a letter of apology and compensated me financially and finally closed the account wiping this £395 of bank charges, they also stated that they would remove the 2 defaults from my credit file but this would take 60 days. I was looking for a mortgage and could not carry on with the mortgage as these defaults were on my credit file. That was in September 2016. I now reapplied for my Right to buy and wanted a mortgage so reapplied for my credit files and these 2 defaults haven't been removed. I've phoned the complaints dept of Lloyds twice and the complaints manager is always busy so won't talk to me. They've got my phone numbers but am still waiting for a reply and an explanation of why these 2 defaults are still on my credit file. I've only got a limited time before I run out of the Right to buy time as the council have given me 3 months and want a letter that I've got a mortgage offer. Many thanks for your advice which is much appreciated

Comments

  • Candyapple
    Candyapple Posts: 3,384 Forumite
    First Post First Anniversary Combo Breaker Intrepid Forum Explorer
    Your title mentions 2 defaults, but you only refer to one bank account with Lloyds? Who is the second default from?

    The free versions to check your credit files are below:
    Experian: https://www.moneysavingexpert.com/creditclub
    Equifax: https://www.clearscore.com
    Call Credit: https://www.noddle.co.uk

    What are the dates of these 2 defaults on your files?
    I'm a Board Guide on the Credit Cards, Loans, Credit Files & Ratings boards. I'm a volunteer to help the boards run smoothly, and I can move and merge threads there. Any views are mine and not the official line of moneysavingexpert.com
  • I’m guessing Lloyds put a default on and then Lowell put a default on when the debt was transferred and Lloyds didn’t remove theirs. Whilst this isn’t common practice, it is valid.
    2.88 kWp System, SE Facing, 30 Degree Pitch, 12 x 240W Conergy Panels, Samil Solar River Inverter, Havant, Hampshire. Installed July 2012, acquired by me on purchase of house in August 2017
  • demi60
    demi60 Posts: 43 Forumite
    Name Dropper First Anniversary Combo Breaker First Post
    Yes Lloyds sold this debt onto Lowells. However, I scanned the original letter from Lloyds and sent it to Equifax, Experian and Lowell. I have had replies from all as Lloyds Bank has put these defaults on so they should instruct these companies to remove the defaults.


    And no this practice by the banks is not valid as I have been treated unfairly by Lloyds Bank, and now I'm being ignored. Looks like either I will have to go back to the Financial ombudsman.
  • Only Lowell’s can remove the default they put on. So go back to them and be firm.

    Lloyds do need to remove the default they put on. Remind them of the decision of the FOS and that you won’t hesitate to go back to them.
    2.88 kWp System, SE Facing, 30 Degree Pitch, 12 x 240W Conergy Panels, Samil Solar River Inverter, Havant, Hampshire. Installed July 2012, acquired by me on purchase of house in August 2017
This discussion has been closed.
Meet your Ambassadors

Categories

  • All Categories
  • 343.1K Banking & Borrowing
  • 250.1K Reduce Debt & Boost Income
  • 449.7K Spending & Discounts
  • 235.2K Work, Benefits & Business
  • 607.9K Mortgages, Homes & Bills
  • 173K Life & Family
  • 247.8K Travel & Transport
  • 1.5M Hobbies & Leisure
  • 15.9K Discuss & Feedback
  • 15.1K Coronavirus Support Boards