Lloyds Recoveries

MrKearns85

Hi,

This is my first post on here but have read loads of helpful threads so thank you all in advance.

I have had a long repayment plan with Lloyds Collections about an overdraft of £1500 (pure charges while I was travelling that I couldn't claim back). I had made all of my payments on time and my sister suggested getting the interest frozen, she spoke with them on my behalf and they agreed to freeze the interest and confirmed this WOULD NOT be a default. I carried on making payments, no letter received and then got a letter in the October (5 months later) saying a default would be registered if I didn't make payment. Called them again and they agreed to freeze WITH NO DEFAULT. I ended up calling them and making a full settlement a couple of months later - also no default.

Checked my report today and there is a default in November. After an hour on the phone last night they said that I was informed incorrectly in May (the first call) and it would always be a default when it gets transferred to Recoveries. There is no letter issued on file, although a note saying a letter was sent, and the next letter sent was 18/10/12 sayng a default would be registered as of 01/11/12. I have checked this and they are legally required to give me 28 days notice. I have raised a formal complaint and am awaiting a call back.

Sorry for the lengthy post but do I have a leg to stand on to get this removed as I was incorrectly informed and never received a letter confirming the details.

happy_bunny_2

If they told you you wouldn't be defaulted, then yes, you could argue removal. Not sure what may go in its place, maybe nothing, late payments, or arrangement.

Worth a go though.

Did you raise the complaint in writing?

Can refer to a FOS if they reject, but can take months.

MrKearns85

Thanks, I didn't issue the complaint in writing but will do as a follow up. I got a call back on Wednesday from the complaints department, just taking some more information for the complaint. Fingers crossed.

Buzby

Have you proof? If a phone call, have you your own recording? Do not expect the bank to provide any evidence to support your contention, as the recordings are for their security, not yours.

the_insider

I would think if they agree they gave you incorrect information they will take one of two courses of action.
1. they will back date the default to when it should originally have been applied in May
2. they will move the date forward to 28 days after the notice was issued

If you can't pay it off in full, you're in default as per their T&Cs and it doesn't really matter if you were told that or not. They have to show the status of your account on your credit file.

MrKearns85

The problem I'm having is that I never actually defaulted on the loan, never missed a payment. The default was apparently a side effect of them freezing the interest. The account was fully repaid in the January.

the_insider

They froze the interest because you told them you couldn't pay it. As interest forms the terms of the overdraft you were not able to meet the terms required of you and therefore you were in default.