Defaults on Credit File - Rules?

shaunlewis

All,

In Feburary of last year, I was admitted to hospital for a period of 3 months. During that time, since my income had stopped, a direct debit took my account overdrawn, and the bank extended an unplanned overdraft to cover it, with charges. The situation had not changed 30 days later when they tried to take the money out of the account again, sending me further into the red. At this time, they also sent a letter demanding payment of the now, 70 pounds in charges, within 30 days.

I did't learn of any of this, since noone was opening my post, untill I was discharged and returned home. I contacted the bank (LLoyds TSB) straight away and, after a meeting with my branch manager, where I showed her a letter from the hospital, she appoloised and arranged for all the charges to be removed.

A few months later, I attempted to move my account to a bank with a better offering, but I was rejected on the basis of my credit score. I ordered a copy of my credit file, and found that Lloyds had registered a default. (I filed a notice of correction, which was sufficent to change that decision to a yes when I asked the new bank to do a quotation search a few days ago)

I visited the branch again and was told that the marker was registered automaticaly and there is nothing they could do about it. I have been told this at the branch twice, and by telephone. Quite frankly, I don't belive it.

Is this actually the case? What can I do to get this default removed? Are lloyds able to remove it themselves, and are being awkward?

I would like to get this sorted as soon as, as I am holding off moving my account in case I lose some sort of right to appeal with LLoyds as soon as I am no longer a customer. What are my rights in this case?

I'm not sure how this would stand legally. I can't strictly argue that the default was a mistake, since I did default, but at the time I was physically unable to do anything BUT default. I even had the hospital write a letter to that effect, but the bank still insists it is powerless to do anything.

Thanks for reading.