Lloyds TSB Default

rosencrantz

Default Advice


I've been struggling to repay a Career Development Loan for some time now but have finally saved up a significant sum of money to repay the loan. I called LLoyds TSB Collections department several times last year to discuss a full and final settlement offer but every time I rang they gave me a different figure.

Out of frustration this year I went into a branch.

I was informed that they would accept a reduced full and final settlement but this would be marked as Partially Settled on my credit file. So I decided to save a little longer.

On March 9th 2012 I wrote to Lloyds TSB Collections and offered to repay 86% of the debt.

I did not receive a reply.

On the 17th April I called the Collections department to find out why I had not had a reply to my letter. They informed me that my account had been passed to Recoveries and that a default had been applied on 11th April 2012.

Is this a default letter?

I am really frustrated that despite going in to the branch to seek help, and despite sending a letter offering a full and final offer to the value of 86% of the total loan they have issued a default on my file without so much as calling or sending a warning letter.

Lloyds say they did not receive the letter I sent - I should have sent it recorded - I do have a copy of the letter.

Is there anything I can do? The call centre in India seem to think there is nothing I can do - yet remain unclear even on the date the default was issued.

Any advice would be greatly appreciated.


Many thanks!

Tixy

It does sound like they mean a default on your credit file. Have you been paying anything towards the debt whilst you were saving up?

Have they been sending chasing letters regarding the debt over the last few months - are you certain none of them mentioned issuing a default on your credit file, or giving you 14 or 28 days to rectify the account/pay off the arrears?

I wouldn't bother trying to speak to them by phone especially if you are only getting through to an overseas call centre, or even in branch. Its best to keep everything in writing.

rosencrantz

Well I just called the National Debtline today. I read them the letters I've had and they informed that they are not an official default notice. They also said that you have 14 days from when a default is issued to pay the debt before it put on your credit file.

I hope that is right.

I have just paid off the debt in full.

I just really hope I'm not screwed now for the next 6 years by a default. It would seem especially unfair as I was in contact with Lloyds about paying the debt off and waiting to hear back from them about my final settlement offer.

rosencrantz

The letter from a law firm states that I have 14 days from the receipt of the letter to make the payment - due to double bank holiday I did not receive the letter until the 3rd of April - and I called them to arrange full payment on 17th April... so how can they default me? It doesn't seem right to me...

rosencrantz

Worried sick about this... If anyone has any advice it would be much appreciated. just the one letter from scm solicitors otherwise just regular statements from lloydstsb tsb... In fact one statement dated 12 April - the day after the default was supposed to have been applied to my account...

rosencrantz

Just to follow up on this - despite much conflicting advice from Lloyds TSB it does seem they applied a default on my account - although Equifax registers the account settled without a default - Experian has updated slower registering the default and the account settled. I'm so upset that I seem to have paid within the time frame established by them - but also that I was in regular touch with Lloyds and had sent them three letters offering 90% of the final outstanding balance - all of which went unanswered and had even been to meet my bank manager in person just a few weeks earlier...

nottoolate

complain to lyods that they shouldnt have registered a default

tell them that you are prepared to take the compliant to the ico and fos if needed and will look for compensation for the false default

simon_mdp

Couple of thoughts. . .

1) Follow the advice of nottoolate above and make a formal complaint to Lloyds Bank. Sounds like they have a case to answer. Don't bother going to the Credit Reference Agency - they will just point you back to Lloyds bank, although you could file a Notice of Correction with them on that account to clarify your position to anyone reading the file, or

2) Chill and forget all about it. It's only a minor infringement and is unlikely to have a major effect on future credit applications, and if it's something serious like a mortgage you'll probably have another opportunity to explain.

BestRegards

rosencrantz

Thanks nottoolate and simon for your advice - I complained to Lloyds and have a phone call scheduled with their complaints department tomorrow morning. I'd really like to forget about it - but I'm starting to think about buying a first house - it's hard enough I imagine to get credit at the moment - especially being self employed and I figure a default really isn't going to help things.

I have been far from perfect in the way I ran the loan repayments. But I did repay in full and it feels very unfair to have been given a default on the 11th April when the termination notice was only sent on the 28th March detailing that I had 14 days from receipt of the letter to make payment.

I took several steps in the run up to the default to make payment - I met my bank manager six weeks earlier - I wrote three letters and made offers to repay nearly 90% - all of which went unanswered.

Thanks so much for you tips, help and encouragement.

nottoolate

dunno about chill out. a recent default will seriously not help.

i would be livid

and i would complain and take it as far as i could