Help with Bank Default!

sam1001_2

Hi all,

What a fantastic life saving site!

A few years ago, I moved house and whilst I was certain I had changed muy address on the phone, apparently Halifax have no record of this.

I had £2750 as a student overdraft, was in my limit, and knew that I was not paying interest, so when I started putting money in my Lloyds account (there was no Halifax in the village) I was not at all concerned.

When I called up Halifax to say I knew that I would be paying interest in 3 or so months so needed t start putting money in my account, I was told it had been defaulted as no money had gone in there for 6 months and that was against my agreement! I was devisated as my credit is now destroyed.

I have not heard from the debt collectors in a year as I have moved around but I am desperate to know what to do. Can I complain? Also why is the Default balance below less? Help!


Current Account from Halifax (Current Accounts) (I) / XXXXXXXXXX89-3
Name Mr Samuel **** Date of Birth 24/07/****
Terms 0 @ £ 0 (Monthly) Status Defaulted
Current Balance £ 2,444 Start Balance £ 0
Credit Limit £ 0 Default / Delinquent Balance £ 1,449
Start Date 25/07/2001 Date Updated 12/07/2010
Date Last Delinquent 03/09 Date Satisfied
Payment History

This table shows how you have kept your account over time, for infomation about individual months pass your mouse cursor over the coloured block
J F M A M J J A S O N D
2009 Defaulted

brokeinlondon

Usually when you get an overdraft, it's in the conditions that you have to pay a certain amount in each month, so not sure you can complain about them defaulting you.

Sorry, can't really advise on anything else in your post, i'm still a bit of a n00b.

Good luck!

Hannah_10

If you know you told them you had changed address then yes of course you can complain and you should- in writing to Halifax. Keep in mind that responsibility to understand your agreement was yours, but responsibility to record your details properly is thiers under the Data Protection Act 1998 and so your complaint is that they didn't. Might be worth looking up the DPA so you know what you're talking about when you do write and if you have old itemised phone bills see if you can find out the day and time of the call becausebeing able to state that helps a lot.

Unfortunately the default was correctly applied, so you can't force it's removal but I reckon you could negotiate it's removal with Halifax if you tried. I would first complain about your address not being changed, then offer to settle the account in full in exchange for the default removed after the complaint is dealt with.

If you don't get any joy by complaining to Halifax you could complain to the FOS afterwards because it's a DPA issue, but again, the FOS probably wont say the default has to be removed.

Tixy

Hi

Unless you can prove you provided them with your new address then they only had to send communication and a notice of default to your old address.

Have you looked at the terms of the account? Does it say that you need to pay in something at least every 6months or words to that effect?
When did you last use the account? When did you move? How does that compare to the default date?
When did first you call them to try to arrange payment?

Which debt collector last contacted you? have you paid anything since you first called and found out it had defaulted?

Sorry lots of questions - but it will be worth setting it out just in case there may be anything you could do to get it removed.

sam1001_2

Thanks!

Well, I have not got the original contract, but spoke to the debt collectors a year ago and asked for an original copy of the credit agreement.

The thing is I opened it when I was 18 in year 2000 and did not sign anything after that. So for a year I have heard nothing.

I dont have the old phone bill, and I agree that essentially it is my fault, but I dont earn a lot so cant just pay it off. used the account late Autumn 2008 and then I moved.

I used telephone banking to check balance and make sure I never went over my overdraft limit throughout that period and from telephone system it appeared all fine. Then in February I called up and said I am going to put my wages into it now and they said 'sorry its with the debt collecter from last month'

Cant remember the debt collector as I have moved since then but its something like Babcox While and West of something.

I know I told them but how do I prove it! The odd thing is also this: Delinquent Balance £ 1,449

Its half of the total amount?

Thanks guys/girls you are wonderful.

Sam

Tixy

An overdraft doesn't have an agreement covered by the consumer credit act in the same way as loans or credit cards do.

Might it have been blair oliver scott do you think? if so they are actually halifax's in house debt collectors.

Not sure about the delinquent balance amount, sometimes it seems there isn't much reasoning behind things - I suppose its possible in the default letter to you your were asked to repay a certain amount of the balance, maybe its related to how much of it was interest free and if any was being charged interest (as I think thats sometimes how student accounts work that gradually the interest free limit reduces).
Sadly the delinquent balance doesn't represent what you owe and you will still owe the full amount.

People do sometimes manage to negotiate a default is removed - especially if you can pay off in full and you could try complaining about your address not be changed. But I think you'd be trying to rely on their goodwill as you cannot prove anything so you may well find that nothing can be done and you are stuck with the default.

When you moved for a second time - since you spoke to the debt collectors did you give them your new address that time?

The thing now is to make sure it doesn't get any worse - if you haven't informed them of your later address change you risk them taking court action against you and you not knowing in time. As obviously a CCJ now will make your credit file even worse.

I would suggest you get in touch with them and try to negotiate monthly payments you can afford, at the same time perhaps writing a complaint about the address change.

sam1001_2

OK thanks, just trying to work out my options and odds etc.

I am suprised they have not taken me to court if they were going to as its been a year since contact. They dont have my new adress I dont think, they still think Im living in Canada.

With my income it would take 5 years to pay off, but then how long after that would the default be lifted? Id they dont contact me for another 4 years will it go from my file? If I arrange payments with them would this make my credit file better?

I am just trying to work out the best way to sort it without going skint!

Thanks for all your help, I am just trying to work out the best course.

Tixy

Defaults stay on your file for 6years from the date of default. After that it would leave your file whether it was paid or not (though it wouldn't mean you didn't owe it).
Making payments on the account is unlikely to make much difference on your credit file. If it was settled before the default is removed from file then it would show as a satisfied default for the remainder of the 6years, and that is seen by most lenders as a bit better than an unsatisfied one.

If you have recently requested your credit file and put in your new and old addresses then they will likely be able to locate you again and you might find something coming through from them over the next couple of months (not definite but it does happen quite a bit).

Hannah_10

You say it would take you 5 years to pay off and I understand the amount of the debt is £1.5k? Would your SOA to show that stand up to scrutiny? Do you really care about your credit rating? If the answers are yes, yes and maybe not then a DRO might be of interest.