Lloyds TSB Fobbing Me Off

damoandclaire

HI there peeps.

Been a while since I been on here so here goes.

I've been with Lloyds TSB now for couple of years nearly. Have a basic account (one with the Debit Card that you can only use in their cash machines). I have run a perfect account with them for the entire time. There was one charge in the first month which they admitted was their fault and it never materialised.

My query today is around me getting an upgrade on the account. I have found the need recently to use a cash machine other than a Lloyds one and found myself stuck because there is either no lloyds cash macine locally or I am unable to use the debit facility for what ever reason.

When I've gone to my branch and I've asked them to check, they have turnend round after doing some tapping away on their computers and said no, we can't offer you it at this time. I've thought fair enough, my credit history isn't the best in the world and I've asked them what could be causing it. They've pointed out to me that it is something on my credit file but obviously, couldn't divulge what (having worked in a bank previously, I appreciate they're not allowed to).

That said, I've gone away and ordered a copy of my credit file via both Experian and Equifax. Upon checking these, I was quite surprised to find that LLoyds had not checked my credit file in 6 months let alone the last month.

Given that the reason they're giving me is that something on my credit file is stopping an upgrade and they haven't even searched my credit file in the last 6 months (and from all accounts since I opened the account) do I have grounds to complain to them?

I've not asked for a credit facility because I don't want it. I just want to be able to use my card anywhere I like and in any cash machine I like as I do travel quite a lot and the debit facility isn't always an option.

Thanks in advance

stella2009

Lloyds TSB get a monthly feed I believe from a CRA. This will not show as a search but gives them all the up to date info from your file on a monthly basis.

fischer79

Open an easy saver account (no credit score needed). It comes with a cashpoint card but it is not "locked" and can be used at any LINK ATM.

Also while a footprint may have only been left once from LTSB checking your credit history they receive a feed regularly about your creditworthiness. I think its only actual requests for credit that cause a footprint i.e. trying to open a new current account, overdraft etc.

book12

Open another basic account at another bank, which will allow withdrawals from other cash machines.

damoandclaire

Thanks for the replies.

Makes sense from what you're saying.

Given that this feed is "effectively" checking my credit file although its not showing as a search, and given that a customers permission is required before my credit file is checked for what ever reason, in what ever method, are they actually allowed to do this?

Given that I've had issues before and having worked for a bank I was quite maticulous about reading all the fine print and terms and conditions regarding this account to ensure I was covered.

I've not applied for any credit with them and in that sense I have not agreed for them to reguarly check my details. Them sending info to my info to a reference agency fine because I can see that happening (arrears, O/Drawn etc) and to that effect, there is nothing to worry about (as there are none).

The other thing that I have not mentioned is that when I've questioned what they have told me by telling them that I have viewed my Credit File and they haven't searched, they tell me to basically prove it and unfortunately at the time I don't have the record with me. So that said, and the fact that they are asking to see a copy of it to prove my case, would I have good enough grounds for appeal?

fischer79

Yes they are allowed here are the t's&c's http://www.lloydstsb.com/media/lloydstsb2004/pdfs/cra.pdf and section 14 is the relevant section.

They actually have a legal responsibility to monitor you for credit worthiness - one that will be stricter and more onerous after the Credit consumer Directive becomes law in June

damoandclaire

thanks for that fisher79. Just read section 14 and 14.11 states and I quote:

If a Lloyds Banking Group company needs to make a credit decision when you apply for a service or to review the amount
of credit it provides under an existing agreement, such as an overdraft, it will carry out a CRA search. The CRA will record

the searches, even if an application does not go ahead or is unsuccessful.

Given that I've asked them to upgrade my account, this would constitute "apply for a service" part of that section and as such it states it "will" record the searches. My point is, according to my credit files from both experian and equifax, they are not recording the searches which tells me theyre not actually attempting to upgrade my account. (hope that makes sense).

Given that, do I have grounds to appeal their decision?

stella2009

It is in the other parts of the section.

damoandclaire

it is in other parts of that section - 14.9 to be precise and it states to check credit history, which is fine. I'm not questioning that.

I don't think I'm getting my point across. The same section states that if apply for a service, a record of the search will be recorded at a CRA - a search is in fact NOT being recorded on either of my CRAs credit records. It does state it would be recorded whether it was successful or not.

My point is (appologies if I'm getting a bit blunt here), I don't think they're actually applying for a service given they are not recording anything after their own T & C's states it will do if I apply for a service.

As there is no record of the search, is it reasonable for me to assume, based on their T & C's, that the application has not taken place and as such grounds for me to appeal and to get them to do it properly. There is nothing on my CR that should hinder what I'm applying for.

fischer79

I think the way it is specified means they can define when they "need" to make an explict search on the credit records and when they feel they can rely on their internal scoring + regualar feeds

fischer79

sorry and to answer your question I think it is unlikley that you will make them reconsider the decision.

If you have internet banking you should be able to open an easy saver very quickly and as i say transfer money into it and access it via any mainstream ATM which should help with your immediate need.

In the longer term and access to mainstream accounts I think its just patience and running your account properly. i would be surprised if any of the big banks have very different credit scoring mechanisms.

Alternatvley some of the challenger banks like Santander might have less strict controls and could be worth a try.