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

flossieflipflop

Thank you!

I have emailed the ICO as figured I would have something in writing from them to forward on to LLoyds.

I will send the letter I have drafted tomorrow as planned which basically asks them to respond with a reason for adding defaults so late.

I do wonder if they waited so long so they could add as many charges and late fees as they could to the balance before defaulting it (Am I right in thinking after a default is registered some charges and late fees can't be applied although interest still stands? What I gleaned maybe incorrectly from some other threads?)

Therefore would I be able to ask for default to be backdated and then any charges/late fees to be removed?

Thanks again

climbintheladderouttadebt

Evening Flossie!

Think the email is a great idea. Hope Lloyds respond quickly and satisfactorily but i won;t hold my breath! Who knows how these people work?! I am not sure about rules on fees/charges after a default but there may be guidance in the ICO guide? I've read it a few times but need to refresh my memory again!

I see no reason why you shouldn't request the default to be backdated, I think that's more than reasonable!

I'll pop back on here for you tomorrow, I hope I can be of help!

fermi

climbintheladderouttadebt wrote: »

I see no reason why you shouldn't request the default to be backdated, I think that's more than reasonable!

It is more than reasonable.

Trouble is getting the ICO et al to agree on any complaint.

Floosie has the requisite time, so may be worth a formal complaint.

climbintheladderouttadebt

Just found this!

if they (DCAs/creditors) are adding further interest and charges after going into default they are breaking s78(6) Consumer Credit Act.

Link to the consumer credit act here: http://www.opsi.gov.uk/acts/acts2006/en/ukpgaen_20060014_en_1.htm

karenw

This is all very interesting, i'm now thinking of cancelling my dmp as my main creditor is Lloyds and i don't want to be in a worst state than when i started

flossieflipflop

Thank you for all the help.

The cynic in me would say they waited so long to add defaults so they could add as many charges as possible!!

I sat down with a calculator and worked out my Lloyds credit card was £5000 in 2007. I have paid £2500 off it in that time on the dmp towards the credit card alone but my current balance stands at £4500 so they have clearly been adding charges and interest left right and centre. The latest statement also says they've reduced the limit to £4300 so I'm now being charged for being over limit (gahhhhh!!! Why the hell are they so unreasonable when I'm in a clear dmp and meeting all my payments!)

I've posted the letter this morning and await their response. Depending on what they say I will pursue for default to be backdated and any charges or late fees to be removed which would reduce my balances dramatically!
As it's Lloyds I won't hold my breath!

Who would I formally complain to? The ICO?

Is there any template letters on here for this particular situation?

Many thanks again - without you all on here I would be none the wiser and Lloyds would be getting away with this.

Karenw - I don't really have any advice but dmp do work it's just lloyds who are little monkeys about it. The loan has gone down in balance with them so don't think they added as many charges to that. The main problem is the overdraft and CC. If you just have a loan with them they may be better to deal with?

Thanks again everyone
Flossie

climbintheladderouttadebt

Hi Flossie,

That is DISGUSTING behaviour from Lloyds! Your theory sounds right! The first step of course is to complain to Lloyds. If you get no joy there, either after 8 weeks since your initial complaint or they send a 'final response', you can complain to the FOS and the ICO. I'm not as certain on the roles that Trading Standards/Consumer Direct or the FSA play but perhaps a quick check on their website will tell you?

The FOS have a downloadable form on their website, as do the ICO. More on those if you need, later down the line. For now, your letter to Lloyds *may* have some effect. If you need to write to them again, its worth putting 'complaint' in big black letters at the top (so I've read)

Karenw - I can't really give any advice, Lloyds may or may not deal with you in the same way. How long have you been on the dmp? Have you had any fees from Lloyds since starting it?

karenw

flossieflipflop wrote: »

Karenw - I don't really have any advice but dmp do work it's just lloyds who are little monkeys about it. The loan has gone down in balance with them so don't think they added as many charges to that. The main problem is the overdraft and CC. If you just have a loan with them they may be better to deal with?
Flossie

Ahh right i only have a loan with them so maybe i'll be ok!

karenw

climbintheladderouttadebt wrote: »

Karenw - I can't really give any advice, Lloyds may or may not deal with you in the same way. How long have you been on the dmp? Have you had any fees from Lloyds since starting it?

I have only recently set up my dmp but Lloyds have been very helpful so far by stopping all charges for 2 months on my current account if i go overdrawn but they never said anything about stopping any charges on the loan

flossieflipflop

Just a quick update. I have posted my letter so will see what response that gets.

I also asked on the ccs board and the advisors there seem to think this is allowed (although a little unfair).

My update is that in the post it appears Lloyds have sold or passed on my debt to a debt collection agency and this is more than likely why the defailt was added (they can't pass it on without this apparantly). I still don't know why they would wait so long to do this but they've obviously decided they can't be bothered with it anymore.

The only upshot of this is that the debt collection agency may be better to deal with than Lloyds! And maybe I can offer a F and F of a much lower amount (although this will take me a few months to save for so won't go down that route with Lloyds just yet)