Sorry me again! Lloyds TSB adding a default 3 years later?

flossieflipflop

Hello,

I have been in a dmp since Oct 2007. Lloyds tsb were/are my main creditor. I have met all my payments on time and every month.

Lloyds currently recieve about £150 on a debt that is currently about £8000 (which I have worked out should be £5000 now but they continue to add charges and interest and have done throughout plan which have added a fair amount to this)

Obviously when joining the dmp I expected defaults to be registered but Egg were the only ones who did.

Until now.....
In April and May this year Lloyds have added defaults onto my overdraft and loan and I received notification this week of a default for my credit card. Whilst I don't dispute the defaults I do question why they have waited 3 years as I clearly defaulted when I joined the plan and so what is different now? I'm really annoyed as this will add another 6 years of misery to my credit record when it would have been completely clear within 4 years maximum (possibly 3 if I succeed in paying it all off sooner).

Have they done this to anyone else? Why would they wait for so long to do it?

Thanks for any advice

karenw

Oh dear i have just started up a dmp with cccs and my main creditor is Lloyds (9k loan) i hope this doesn't happen to me :eek:did you try and get them to freeze the interest what did they say when you asked?

Sorry i can't give you any advice but i'm sure someone will be along soon to help!

climbintheladderouttadebt

Hi Flossie,

Lloyds did this to me. I had issues regarding charges and raised a complaint as I was struggling to pay all my bills at the time this all started. This was when the test case was on, and instead of handling my complaint because of the hardship rule, Lloyds put the claim on hold and continued issuing charges. I swapped banks needless to say! Despite the account/amount I owed being in dispute, Lloyds issued a default notice to me on 18 March 2008. I knew nothing about this stuff back then.

Cut to this year, Lloyds place a default on my credit report dated Feb 2010! I've been advised to contact Lloyds and ask for its removal. If it's not done, I can take the complaint further. I've already informed the OFT about their behaviour/actions as I have a complaint in with them over the way Lloyds failed to offer any help to me, the handling of my case etc.

I'm no good at explaining my situations, so sorry if you try to read any of these and they confuse you, but the links to my threads are here if they may be of any help!

https://forums.moneysavingexpert.com/discussion/2548087

https://forums.moneysavingexpert.com/discussion/2559453

https://forums.moneysavingexpert.com/discussion/2617747

I sympathise with you and hope we both get good results in the end! Damn Lloyds! Really the worst bank in the history of money!!!!

karenw

Ooh I'm not liking the sound of this Lloyds do seem the worst bank to have a dmp with. What gets me is they have been very helpful by knocking charges of my account for been overdrawn and said they will put any future charges on hold for 2 months then they passed me on to cccs, so i can't understand why they would still treat customers in hardship this bad :mad:

flossieflipflop

Thanks for the responses.

To add LLoyds are the only one of my 3 creditors who have been a nightmare the whole way through this.

Do you think they may be in the wrong for adding the default now? I don't question the legality of a default just that they should have done it 3 years ago not now?

Have sent them a letter which they should get on Tuesday asking for explanation of why they have done this now and about why they continue to add charges and most annoyingly late payment fees (despite my dmp being paid on time but clearly not to Lloyds dates Grr!!)

I officially hate LLoyds and had to try very hard to stay polite in my letter (figured I might get more luck that way). I have requested that if they remove the charges and late fees added over the past 3 years I can afford to pay them more (want to leave my dmp and deal with creditors direct) and have set out a payment plan which would clear the debt within 24 months rather than the 4 years left on my plan (though with all the extra charges this may take even longer!!) I won't hold my breath but will let you know what response I get.

I just don't get why they waited so long to issue defaults?? how does this benefit them?

climbintheladderouttadebt

Hi Flossie,

Yes Lloyds do seem to be in the wrong! You need to find out if/when they sent a default notice to you - follow the advice in your earlier thread and send them a SAR (Subject Access Request) with a cheque for £10 and you'll get everything they have data wise on you (or you should!)

If you need a link to it, just ask, if I can't find it I'm sure someone else will!

Lloyds are a55holes who think they're above the rules, that's why they do it. They are as bad as DCAs in my opinion, and rely on customers not knowing the rules/law etc. so they can rake in God knows how much. My maths is far from good, and for being 11p overdrawn I was charged £30. I spoke to them about it, my view was never 'o I'm going to reclaim loads' (I've had other charges and let them go, when I believe I should have been more responsible with money) but I'd just had a baby, was running a home on my own for the first time, and really struggled to cope. I don;t find it easy now but I'm with a better bank!

Anyway, step 1 is to send the SAR to them. It *may* be worth trying to reclaim the charges they've added, too, but I'd wait for advice from others before taking my word for it! And well done on the idea of doing your own DMP and paying things off quicker. Personally I'm very glad I did mine this way.

Look forward to further posts/updates! CLOD

flossieflipflop

Thanks,

I'm pretty sure they sent out the proper notifications (I was a bit rubbish at reading letters and tend to just post them off to my dmp people) but the one I have just recieved for the creidt card looks legal which means they are going to add this one on soon too.

I just want some clarification from anybody about whether they are allowed to add the default now 3 years after accounts were defaulted and despite the fact all arranged payments on dmp have been met?

I've searched online but can't find any guidance/regulations etc

Does anyone know if they can do this? it seems very unfair?

fermi

Under most circumstances the Information Commissioner regards it as unfair to record a default dated later than 6 months after it can be fairly stated that the account was defaulted by you.

What is the actual recorded "default date" for this on your credit file?

Sometimes they will add a default now, but record the actual "default date" as earlier (when it should actually been IYSWIM). That may be more difficult to argue against, so need to check before things go to far.

fermi

From: Technical Guidance Note - Filing defaults with credit reference agencies

Time framework

Although there will be some flexibility in the definition of a breakdown, we believe there should be general rules for the minimum period of arrears which should exist before a default can be filed. Equally there should be a maximum period after which, if anything is to be recorded with a credit reference agency, a default must be filed. The following are in line with the practices currently adopted by most lenders.

• Accounts should not be routinely filed as being in default where full payments or those due under a rescheduled agreement are fewer than three consecutive months in arrears.
• Accounts should normally be filed as being in default where those payments due have not been received for six months.

This time framework only relates to filing defaults. It does not affect the lenders’ ability to continue to report accurately on the extent of arrears using monthly status codes. We recognise that may not always be appropriate for products which advance credit over either a very short or very long-term.

flossieflipflop

Thanks for that - so it looks like they may be in the wrong? As I previously said I do not dispute the fact I defaulted back in 2007 by not meeting my contractual payments and could understand the default being placed then.

I have checked the dates and the 2 they have recently added are th 9th April 2010 and the 20th May 2010. this is when default is registered so they haven't back dated it.

The default notice I recieved last week for the credit card will get added in the next few weeks I guess and again this will be 3 years after original default.

Fermi - does that also mean that they shouldn't place you in default if you are in a dmp and have met all payments? (well not after 3 years anyway)

I ahve written a letter but not sent yet - was going to send it tomorrow morning.

Do you have any advise as to what I should put in this letter regarding the belated defaults?

Thanks again

climbintheladderouttadebt

Morning Flossie!

I'd write to Lloyds and point out the info fermi gave you above and how unfair their actions are. I'd suggest asking them to backdate the default to 2007, but they may not do this if no default notice was issued to you in 2007. I think the hard work involved in trying to remove it altogether might not pay off. But the ICO might disagree - it might be worth calling them (numbers at the bottom of their guidance doc) and asking their advice?

Then you can also mention in your letter to Lloyds that the ICO have spoken to you and state <whatever they say>.

I'm sure fermi will have some good suggestions!

Regarding the DMP payments - as they are not as much as the banks/credit card co's want, they will see it as missed/late payments. Even though you are sticking to a new agreement! Vanquis have done this to me in the last couple of months (I set up my own DMP last year with help from CAB) so I've upped my payments, as I can afford to right now.
They should not be placing the default 3 years after you'd be seen to have defaulted. BUT they can do so quite rightly within the first 3-6 late/missed payments, even if you are in a DMP. This is what I understand, but would be happy to be corrected!