Default Notice on Lloyds TSB Current Account

climbintheladderouttadebt

Hi there,

I have a simple question, at least, I hope!

Lloyds TSB issued me with a default notice on 18 March 2008, after numerous overlimit fees were placed on my account, which I could never afford (which started in 2007).

The default notice is correct, and I am fine with that. However, the default on my credit report shows as February 2010. Can Lloyds take nearly 2 years to put it on my file and use an incorrect date?

No further default notices were ever issued to me from them.

If this cannot or should not be done, do I then write to Lloyds with all relevant info to have the correct info put on my file?

Thanks guys!

di3004

LLOYDS!!!:mad:

I only missed one month and they send me a default letter.

This was over a year ago now, and because they have been very difficult to deal with, we have 4 accounts being dealt with by the FOS, they are currently being dealt with now, and the FOS state that we should be entitled to compensation for the inconvenience and distress they have caused.

However, they have since agreed to monthly token payments for 6 months and suddenly we received a letter from Apex Credit Management services who are supposed to be working on behalf of Lloyds, the FOS have wrote to them to ask them to hold their horses until this matter is resolved.

Sorry, I understand this is actually nothing to do with your question, but if you constantly keep having problems for them and they don't resolve them, take them to the FOS for the distress they have caused.

And I'm sure someone will be along soon to help you through this matter, good luck.;)

DarkConvict

Default notices must be placed within 6 months of you defaulting, otherwise they are considered unfair as they are affecting you for longer.

Contact Lloyds and inform them that you did not default your account in Feb 2010, and that under OFT rules on placing defaults this default is unfair and should be removed as it is over 6 months older than the date of defaulting.

If they did really send you a notice 2 years ago they can get away with just changing the date back, but its worth trying to have it removed altogether.

climbintheladderouttadebt

Letter being written as we speak!

Lloyds have been a pain in the backside since day 1. Despite the amount I owed them being disputed, they hassled me for money, issued the default notice and sold my debt onto a dca.

I'm complaining to the FOS now but am very nervous that, despite the fact Lloyds NEVER helped me (quite the opposit in fact), the FOS will find in their favour because of somthing wrong on my forms.

It's all so much hassle now. I'm expecting my second child in just over 9 weeks. I am hot, bothered, tired, uncomfortable, looking after a 3 year old and really need to move. I can do nothing because of Lloyds idiotic and underhand tactics. I really have had enough and if it wasn't for my boyfriend and kids I would give up!

Thanks to all posters for help.

Di, I wish you luck, it seems great that the FOS have contacted the DCAs to tell them to stop any action they wish to take, as I have read so many stories which really shake my faith in the FOS (not to mention banks, credit cards, courts etc!)

climbintheladderouttadebt

I've written this:

Name & address

28 June 2010

Lloyds TSB Plc
Customer Service Recovery Centre
Charlton Place
Andover
Hampshire
SP10 1RE

Dear Sir or Madam,

Account number: xxxxxxxx

Upon recently checking my credit report with Experian, I have noticed an error in the information regarding my Lloyds TSB current account and the debt relating to it.

In 2007, charges were placed on my account that I could not afford as I was on benefits with a newborn baby. I subsequently disputed these charges. Matters got further out of hand due to the lack of help I received from Lloyds and the already difficult situation I was in deteriorated rapidly. I never ceased my dispute over the charges, which meant my overall debt was in dispute. However, on 18 March 2008, with my claim/dispute on hold (when it never should have been due to the financial hardship I was facing) I was issued a default notice from Lloyds TSB.

This default notice should never have been issued by Lloyds TSB. As I am aware that Lloyds subscribe to the Banking Code, I must point out the following:

The Banking Code
13.6
We may give information to credit reference agencies about the personal debts you owe us if:
you have fallen behind with your repayments;
the amount owed is not being disputed; and
you have not made proposals we are satisfied with for repaying your debt, following our formal demand.

You should be aware that since Lloyds TSB gave their final decision on my dispute over charges, I have been building my case with the FOS and the account is being investigated by them.

Please note the following points:

The default should not have been issued as account was in dispute
Continued letters requesting payment should not have been issued since 2007, when account first went into dispute, as it is against the Banking code for a bank to seek recovery of funds which are in dispute
The date of the default on my credit file should be the actual default date - when I broke the agreement or stopped making payments (or within 6 months of this)
Under OFT rules on placing defaults this default is unfair and should be removed as it is over 6 months older than the date of defaulting
Lloyds TSB are in breach of the data protection act for processing incorrect data about myself and I require you to rectify this. Failure to do so should result in an official complaint to Lloyds and also reporting them to the Information Commissioners Office

I therefore require the default that has been placed on my account to be removed with immediate effect. I look forward to confirmation that this has been done within 14 days, or I shall start further proceedings against Lloyds, which will include complaints being made to all relevant authorities.

Faithfully,

name, signed digitally

Is this ok and sort of 'legal' enough?

Many thanks!

never-in-doubt

Looks good to me! But why no legal mention - defaults are issued under s.87 and s.88 of CCA and their rules actually supercede those of OFT and the Banking Code....

I'd be arguing the finer point, i.e. one default per debt - therefore removal in its entirety is the only option, they cannot just change the date cos you now should have proof that clearly shows they sent the DN in 2008 and the CRA shows 2010 (i.e. 2yr gap) - this is an incorrect default so should be removed, totally....

Add something like this to your letter:

Section 87(1) of the 1974 Act allows the creditor to send you a default notice giving you fourteen days from the date you receive it to pay the arrears. The default notice must contain all of the necessary information under the Consumer Credit (Enforcement, Default and Termination Notices) Regulations 1983 ('the 1983 Regulations'), which includes;

• a statement saying the notice is a default notice served under section 87(1) of the 1974 Act
• a description of the agreement
• the name and address of both the debtor and the creditor
• details of the breach (i.e. late payment) and, if the breach can be remedied, the date by which it must be remedied or, if the breach is not capable of remedy, the amount required to be paid after the expiry of the specified date;

As is clearly evident from all previous communication between us regards to this default, I never received any such notice and as a result I contest the accuracy of the default and until such time you can provide proof that you complied with the above Act, you must remove all derogatory data from the files of any credit reference agency (CRA).

The above is taken from some templates i've uploaded, see below for details (forget the actual template itself, you're looking to nick legal bits pertinent to your case):

- Request copy of Default Notice - Formal Demand
- Default Removal Letter to CRA's
- Duplicate Default Registered with the CRA's - Formal Demand for Resolution

Best of luck.

never-in-doubt

DarkConvict wrote: »

Default notices must be placed within 6 months of you defaulting, otherwise they are considered unfair as they are affecting you for longer.

Contact Lloyds and inform them that you did not default your account in Feb 2010, and that under OFT rules on placing defaults this default is unfair and should be removed as it is over 6 months older than the date of defaulting..

Remember it is just advised (by OFT) that it is good business practice to place it within 6 months, it is not a law in any capacity - also many lenders/DCA's do not listen and add them willy-nilly, then we come along and get them wiped hehe

climbintheladderouttadebt

never-in-doubt wrote: »

Looks good to me! But why no legal mention - defaults are issued under s.87 and s.88 of CCA and their rules actually supercede those of OFT and the Banking Code....

I'd be arguing the finer point, i.e. one default per debt - therefore removal in its entirety is the only option, they cannot just change the date cos you now should have proof that clearly shows they sent the DN in 2008 and the CRA shows 2010 (i.e. 2yr gap) - this is an incorrect default so should be removed, totally....

Add something like this to your letter:



The above is taken from some templates i've uploaded, see below for details (forget the actual template itself, you're looking to nick legal bits pertinent to your case):

- Request copy of Default Notice - Formal Demand
- Default Removal Letter to CRA's
- Duplicate Default Registered with the CRA's - Formal Demand for Resolution

Best of luck.

I feel 100% luckier NID thank you a million times! Shall head off for a short lie down before returning to my pc to type letter and print copies. The post can wait til tomorrow! lol

:j:beer::j

never-in-doubt

climbintheladderouttadebt wrote: »

I feel 100% luckier NID thank you a million times! Shall head off for a short lie down before returning to my pc to type letter and print copies. The post can wait til tomorrow! lol

:j:beer::j

You go have a lie down, i'll sort this letter out for you to simply copy/paste into word before printing ok?

never-in-doubt

Hiya

Have a bash of this version, it should read a little better and clearly spells out their shortcomings.....

Best of luck

Lloyds TSB Plc
Customer Service Recovery Centre
Charlton Place
Andover
Hampshire
SP10 1RE

Dear Sirs,

Account number: xxxxxxxx

Upon recently checking my credit report with Experian, I have noticed an error in the information regarding my Lloyds TSB current account and the debt relating to it.

In 2007, charges were placed on my account that I could not afford as I was on benefits with a newborn baby; I subsequently disputed these charges which were ignored by Lloyds until things got so bad I was left with no alternative but to seek legal advice. The point of matter here is that this was in 2008, i.e. the account was formally (and remains so to this date) in dispute.

Then, rather surprisingly on 18 March 2008, with my claim/dispute on hold (which it never should have been due to the financial hardship I was facing) I was defaulted by Lloyds TSB, incorrectly, as detailed below (additional guidance may be obtained by reading the banking Code and the Consumer Credit Act s.87 & s.88);

The Banking Code 13.6
You may give information to credit reference agencies about the personal debts you owe if:

- you have fallen behind with your repayments;
- the amount owed is not being disputed; and
- you have not made proposals we are satisfied with for repaying your debt, following our formal demand.

Consumer Credit Act s.87(1)
Allows you, the creditor, to send you a default notice giving me fourteen days from the date I receive it to pay the arrears. The default notice must contain all of the necessary information under the Consumer Credit (Enforcement, Default and Termination Notices) Regulations 1983 ('the 1983 Regulations'), which includes;

• a statement saying the notice is a default notice served under section 87(1) of the 1974 Act
• a description of the agreement
• the name and address of both the debtor and the creditor
• details of the breach (i.e. late payment) and, if the breach can be remedied, the date by which it must be remedied or, if the breach is not capable of remedy, the amount required to be paid after the expiry of the specified date;

As is clearly evident from all previous communication between us regards to this default, I never received any such notice and as a result I contest the accuracy of the default and until such time you can provide proof that you complied with the above Act, you must remove all derogatory data from the files of any credit reference agency (CRA).

The default should not have been issued as the account was in dispute and I constantly updated you with guidance quoting that no action could be taken as the account was indeed in full dispute; this as you are no doubt aware is covered within the Banking Code which clearly sets out that it is wrong for a bank to seek recovery of funds which are in dispute. Similarly, the date of the default on my credit file should be the actual default date (in 2008) but most certainly within the suggested timeframe of 6 months - when I broke the agreement or stopped making payments - not 2 years later which seems to be the case.

Under OFT, Banking Code and CCA1974 guidance regards to the placing of defaults; this default is unfair and should be removed as it is over 6 months older than the date of original default to the account. You are also in breach of the Data Protection Act (1998) for processing incorrect data about myself and I require you rectify this immediately. Failure to do so will result in an official complaint to the Information Commissioners Office and the OFT, as I see fit. I also demand that the default that has been placed on my account is removed with immediate effect.

I look forward to confirmation that this has been done within 14 days, or I shall start further proceedings against Lloyds, which will include complaints being made to all relevant authorities.

Yours faithfully,


Sign Digitally

never-in-doubt

di3004 wrote: »

LLOYDS!!!:mad:

I only missed one month and they send me a default letter.

Ahh but not a default notcie Di - that would not be allowed, way too soon