Lloyds default on statute barred overdraft 8 years after last use HELP!

treebozo

Hi all, I’ll try to keep this brief.

I opened a current account with Lloyds TSB in 08/02, rapidly maxed the £1,500 overdraft facility (‘coping’ with PTSD) and never looked at the account again; last withdrawal approx 2003. Went into a branch a few years ago – told by cashier that she could not deal with me in branch and to contact customer services.

Last week, credit report check: Experian – nothing untoward on report.
Equifax report – default entered by Lloyds 05/11 for £1586. Start date 01/08/2010, Default Date 13/05/2011, Date updated 30/06/2011

After reading loads of related threads on this site (as well as LegalBeagles and ConsumerAction Group) I contacted Equifax drawing their attention to the incorrect information – letter copied below. They promptly replied instructing me to contact the original lender:
“Lloyds has investigated your query and have asked that you get in touch with them directly using these details. The information you disputed will remain unchanged on your Credit Report.”

As far as I can tell, Lloyds have acted inappropriately by waiting 8 years to enter a default (against ICO code) and then entered a default using incorrect information (data protection act breach). Also, with no activity on the account from ’03 it would have become statute barred.

I now need to write to Lloyds but am unsure whether to raise the issues with the same sort of letter as sent to Equifax with a paragraph requesting them to contact all credit reference agencies, completely removing the incorrect information or do I send a DSAR request to see what information they are actually holding on me in order to strengthen my argument.

To settle would change default status but would still jeopardise mortgage chances. Ideally, need date changed on default so it drops off credit report.
Any advice most appreciated - need to make this right (anxiety killing me!)

Letter to Equifax:
Re: Default on Credit report no.*****

Account number - *******

I write with reference to the above numbered account. The information held by you regarding a default with Lloyds bank (formally LloydsTSB) is incorrect.

My credit report, dated 24/11/13 shows that there is a default registered with you dated 13/05/2011, however there was no activity on this account between 2003 and May 2011 when the default was registered despite the debt being statute barred. Taking into account the ICO Guidelines 2007, Lloyds unfairly and unnecessarily delayed default entry with credit agencies, as well as being in breach of the banking code.

This 8 year delay is entirely unacceptable. Therefore, I am complaining about this unnecessary delay and formally request that you entirely remove the default as entered on my credit report as the default took place eight years previous to this.

Furthermore, entering or continuing to record a default in this manner is a breach of your statutory responsibilities under the Data Protection Act, as the record is inaccurate and as a result it is being kept on file for an excessive period of time.

Unless you act in accordance with legal and industry guidelines, I will have no alternative but to formally complain to the ICO and FOS.

I look forward to your prompt reply.
Yours faithfully,

rizla_king

You need to write to Lloyds as well and threaten them with the FOS and ICO.

happy_bunny_2

Written complaint, to Lloyds. Unfair default date, ask to correct.

No joy, go to FOS but can take months. Report to ICO and OFT.

Good luck

HB

treebozo

As advised, I have written the following letter to Lloyds to try and resolve the matter. Would real appreciate any additions amendments or suggestions to make the letter as robust as possible. Plan to post first thing in the morning!

Dear Sir/Madam

Account number – 12345678 – SortCode 123456

I write withreference to the above numbered account.

After recentlyobtaining a copy of my credit file from Equifax I was concerned to note thatyour company has incorrectly placed a "Default" notice on my creditfile.

Mycredit report, dated 24/11/13 shows that there is a default registered dated13/05/2011, however, I have never received any correspondence or formal noticeof default and draw your attention to the fact that there was no activity onthis account between 2003 and May 2011 when the default was registered despite anyalleged debt, by this time, being statute barred. Taking into account the ICOGuidelines 2007, Lloyds have unfairly and unnecessarily delayed default entrywith credit agencies, and are in breach of the banking code.

Furthermore, entering a defaultin this manner is a breach of your statutory responsibilities under the DataProtection Act, as the record is inaccurate and as a result it is erroneously beingkept on file for an excessive period of time.

Therefore,I am complaining about this unacceptable and unnecessary 8 year delay andformally request that you remove the default promptly and entirely, from therecords held by any credit reference or other agencies that may have been suppliedwith this data.

Unlessyou act in accordance with your legal responsibilities and industry guidelines,I will have no alternative but to formally complain to the Information Commissioner’sOfficer, Financial Ombudsman Service and Office of Fair Trading, asappropriate.

I look forward to your promptreply, in writing.

Yours faithfully,

happy_bunny_2

Sounds fine to me.

treebozo

thanks HB - will send it first thing and see what Lloyds come back with!