Lloyds Bank registering Defaults - Account in Dispute

TheRedAdmiral

My sister in law has had an account with Lloyds Bank. However, due to a dispute over the actual balance, the account has been dormant (unused) for some time - whilst she attempts to resolve the query.

She has sent letters to their Complaints Dept, and also to the the FOS, and received letters confirming that "the complaint is being looked into".

Naturally she has done nothing whilst the Complaint is investigated.

She recently applied for credit and, despite having a really good credit history, she was turned down for a £600 loan. To her surprise Lloyds Bank had registered a Default against her in June.

The pertinant points are:

1) No Default Notice was ever received
2) The account itself was in dispute
3) The matter itself was under investigation.

Does anyone have any views as to whether Lloyds Bank can do this?

Does it comply with the Banking Code of Conduct?

Is there any template letter than can be used so that she may get the Default removed?

It is important that she gets the Default removed as she is planning to buy a house next year!


Cheers In Advance.

Premier_2

TheRedAdmiral wrote: »

...
1) No Default Notice was ever received...

I suggests she contacts the bank to acertain if a Default Notice was sent

TheRedAdmiral wrote: »

...2) The account itself was in dispute
3) The matter itself was under investigation.

...

When was the complaint first raised with the bank?
When did the event you a complained about actually happen?
When did the bank give it's response (if any)
What was the response from the bank that made you decide to take the matter to the FOS?

TheRedAdmiral

Premier wrote: »

I suggests she contacts the bank to acertain if a Default Notice was sent



When was the complaint first raised with the bank?
When did the event you a complained about actually happen?
When did the bank give it's response (if any)
What was the response from the bank that made you decide to take the matter to the FOS?

Apologies for the delay in replying. Needed to check the information with her.

Here is a brief synopsis of the position:

Between 2003 and 2009 my sister in law had received a reasonable amount of bank charges and took the decision to:

a) Change Banks - (Leaving the Lloyds TSB dormant)
b) Pursue recovery of her Bank Charges direct with Lloyds

At this time she was only £450 overdrawn.

Her complaint was not dealt with by Halifax and, in the absence of a reply, a complaint was made to the FOS.

She subsequently issued a summons in April 2009 and the matter was stayed in June 2009.

BTW between 2003 and 2009 she had 2 accounts:

a) An account where she had received charges
b) An account where she had, at times, in excess of £20k in it

One of her arguments is that she was "in credit" with Lloyds even if one specific account was not.

Anyway, I digress......

In January this year the complaint was escalated and between January and May she received no less than 8 "Holding Letters" from Lloyds TSB. Indeed, on the 3rd April, she even received a letter confirming that Lloyds had "lost her file" - bringing a potential Data Protection argument into the mix.

On the 9th April she copied her whole file into pdf format and sent it to:

a) FOS
b) Linda Hynes - (Operations Manager at Lloyds Bank - Brighton)
c) Eric Daniels - (Chief Executive - Lloyds Bank)

Her complaint was acknowledged on the 13th May by letter.

On the same day she also spoke with Evan Digby (at Lloyds Bank) and confirmed that she was suffering financial hardship. He confirmed that:

a) Her inital complaint would be looked at
b) He would send her the necessary paperwork re the financial hardship
c) No adverse credit would be registered against her.

Following this, on the 17th May the complaint was sent to their Brighton office where it appears to have found its way into a Black Hole.

I understand the Default was registered some time in June without:

a) Any form of response
b) Any form of Final Response or Final Decision
c) Any Default Notice.

She is, quite understably, complexed by this legal minefield and really does not know how to dig herself out of a situation which is not really of her own making.


Thanks in advance.

Premier_2

Here is the Lloydstsb complaints procedure.

http://www.lloydstsb.com/contact_us/complaints_procedure.asp

She really should have followed that to ensure the FOS will take up the matter if a resolution could not be agreed directly by Lloydstsb.

Moreover, with a complaint such as this, she really should have ensured all correspondence was in writing so that you have a paper record of any and all agreements reached.

Without following this, it appears she has no agreement/proof by Lloydstsb that the matter was in formal dispute.

I would suggest she starts this procedure now ... in writing.

TheRedAdmiral

Premier wrote: »

Here is the Lloydstsb complaints procedure.

http://www.lloydstsb.com/contact_us/complaints_procedure.asp

She really should have followed that to ensure the FOS will take up the matter if a resolution could not be agreed directly by Lloydstsb.

Moreover, with a complaint such as this, she really should have ensured all correspondence was in writing so that you have a paper record of any and all agreements reached.

Without following this, it appears she has no agreement/proof by Lloydstsb that the matter was in formal dispute.

I would suggest she starts this procedure now ... in writing.

Hi Premier

Thanks for the reply. Just clarifying that everything has been done in writing. Whenever a phone call has been made this has always been followed up by a letter confirming the conversation.

I just dont understand how they can say the account was not in dispute.

How would you take forward:

a) In respect to removing the default with Experian & Call Credit
b) In respect to Lloyds Bank.

Premier_2

TheRedAdmiral wrote: »

...I just dont understand how they can say the account was not in dispute...

Is there any written agreement from LLoydstsb that they have put the matter into formal dispute?

Either way, I would suggest she starts/continues to pursue the formal complaints procedure of the bank.