My Lloyds CC Default

climbintheladderouttadebt

I'm doing a LOT of reserach into default notices atm as I have 3 I feel should be removed from my credit report (amounts owed were in dispute at time of issue on all 3, plus 1 is recorded 2 years late, and there are faults with at least one of the default notices).

I'm going after my Lloyds credit card one atm. 12/13 months ago they incorrectly processed my payment 3 times but did not take the money, leaving it on hold in my current account. This left me with nothing & incurred charges etc along the way. Lloyds rectified this and paid me money for all the fees I had to pay EXCEPT the late payment fees on my cc.

I contested the charges as when funds were available again, the minimum payment was too high for me to pay and included charges I felt were unfair due to the circumstances.

Finally on 5 May this year Lloyds agreed to refund them. 2 months later I am still waiting for them and getting the standard replies that it will take 4 weeks to look into blah blah blah!

Whilst the amount was in dispute (remember they screwed me over, it wasn't just that I didn't want to pay fees!) Lloyds issued a default notice - 29/09/09. It all looks legal: dates, underlining (as far as I can tell) what is included etc. So my argument is it was issued whilst the account/amount was in dispute, which is against ICO guidlines for data processing and the banking code.

The default was registered on my report dated February 2010. Obviously I wish to fight for its removal, as it was issued unlawfully/unfairly.

I have also come across some more interesting info. This is in the form of rescindered accounts and what monies (if any) can be requested by the creditor.

The DN I received requested arrears only, as it should, but this must include some missed payment and overlimit charges, from what I can work out. That in itself can apparently render the DN faulty/illegal, and, if the DN is proven so, by illegally rescindering the account, Lloyds have forfeited all rights to the full balance (ie by terminating the account on the back of a faulty DN).

I'm still researching, and getting a little confused along the way, but hope to be able to use this argument against Lloyds to get them to remove the default from my credit report.

Does anyone have any experience or knowledge with which to help me out please?

Many thanks! :hello:

bottleofred

Hi,

I'm not sure how to deal with this, but hope you get it sorted to your satisfaction. Someone with more expertise and knowledge than me will reply shortly.

climbintheladderouttadebt

Thanks Bottleofred! Having looked deeply into what Lloyds' mess-up impacted on at the time and afterwards, I can see that it stopped me making my minimum payment on another credit card, which was then revoked and has given me endless hassle since

I am so disappointed that Lloyds were able to ruin so much for me and have so far got away with it. I hope to get all my evidence together, with a good knowledge of the law on defaults, and launch into complaints with Lloyds, failing that the ICO, possibly the FOS, and if I get no joy elsewhere, the court. :mad:

climbintheladderouttadebt

Mmm I'm now left wondering about accepting that the account has been illegally rescindered (ie writing a letter when that happens). Seems by making payments, I have been seen as NOT accepting the termination of the account...

Hope someone can advise soon!

climbintheladderouttadebt

O fantastic quote I've just come across:

Rescission means that future payments caanot be claimed but arrears on an account can. It literally means that that the creditor has lost the rights to payments that would have become due in the future.

The arrears were £44.32. I owe £17.32 of that. So I could pay that, and write to explain that I accept the unlawful rescindering/termination of the account, and that by acting in the way they have, Lloyds TSB have forfeited all their rights to payments that would have become due in the future.

Now my next question is, can I still challenge the default notice if I do this?

OMG there's so many facts coming at me so quickly from the reading I am doing!!

simon_the_poet

no not facts, fantassy