I need help!!

jw83uk

Hi guys

Apologies if this lies in the wrong place but this is my first post, and I AM a debt-free wannabe, so...

Anyway, around 10 years back, when I was a dumb carefree student an had no foresight regarding future credit and mortgages,etc, I over drew my current account, to the tune of £11-12, and, after leaving my job and hence not using the account, let the charges build up and ignored the letters, before eventually forgetting about the whole thing due to my using a different account.

Fast forward 5 years and my £11-12 o/d finally built up to £1149, which I think all will agree is an absolute joke even with my nonchalance regarding my finances! At this time I was still financially immature, working cash-in-hand jobs (taxes deducted) and not using a bank account at all, when one day I received a call from Lloyds TSB regarding the debt. This was around the time this site became famous (or infamous to the banks!) for helping people reclaim their bank charges, and so when I spoke to the bank worker on the phone I told him/her that I was not paying and that I was taking them to court regarding previous charges and reclaiming them in the familiar method used on this site (template letters, etc). A claim which ended unsuccessfully.

Fast forward another 5 years and I have finally learned my financial lessons, mostly anyway, and having recently received a letter from Lowell finance regarding the debt having been passed to them. I spoke to Lowell's team and asked for a reduced settlement and explained how I wanted to repair my bad credit history and was told by them that only by paying the full £1149 in full would I be able to repair the damage done and so, reluctantly, agreed to pay the full amount in settlements monthly.

So, after 10 years off this mess I just want to ask everyone here a bit of advice on the matter, basically i'd like to know;

1) Is it reasonable and legitimate that, over a £11-12 o/d that Lloyds TSB can charge me around £1137 in charges? And should I pay them?

And 2) Is it true what Lowell Financial are telling me that only by paying the full sum can I repair my credit score?

I have spent a looooong time researching this online and have been unable to find a definitive answer so thought i'd try my luck here. Any advice would be greatly appreciated.


Cheers guys

jw83uk

Silly_Spender

Hi jw83uk,

Didn't want to read and run, I don't personally know any answers but someone who's more experienced with this kind of situation will be along.

Well done for coming to the right place though, the people here are very supportive and encouraging

Dan

StuC75

On what grounds did your previous claim end unsuccessfully - how far did you actually proceed with that claim?

The current status appears to be the same as it was then -what has changed over the past 5 years that would now make that unfair??

The reclaim charges area may be a better place to post such a question..

Credit 'scores' do not exist - the agencies only sell you there 'take on it'.. Have you checked what is actually on the credit report itself? as that will give you a guide as to what is likely to be 'sticking' for the long term.

given that you knew about this site when first tried to make a claim, why has it taken until now to come back to ask such questions especially now you have acknowledged the debt to a collection agency that probably bought the debt of pennies in the £...

jw83uk

Hi Stu

Thanks for the reply. In answer to your questions, i do not know why my coaim was unsuccessful, they simply stated that they were in the right in charging the fees due to some court case or other, and i got as far as sending off my letter claiming back the fees and sending the evidence of the amount due to be repaid, then i got a reply stating the above and naively left it at that.

As to why its taken me so long to come back to the site, as I stated I only recently received the letter from Lowel Financial regarding repayment and so spoke to them and was told of the credit score situation (pay back full amount or credit score will not change being the jist of it.). It was only a recent converstation with a friend that made me query the charges again and so come here seeking help.

Regarding what tou have said about credit scoring I want to thank you, I havn't looked at my personal credit report, but as you say it will help I most certainly will do now.

Thanks again

Jon