Default on overdraft

Lily4390

Last year I changed my bank account from lloyds to Halifax. I had an outstanding overdraft with lloyds so I rang them and explained I'd moved banks and that I would like to pay off the remaining £1800 overdraft in monthly payments. Lloyds agreed, we settled on a fee and I began making monthly payments (I never missed one). A few months later I had a letter demanding the full amount and saying it could affect my credit rating if I didn't pay. On receiving this letter I rang lloyds and was reassured my monthly payments were fine. Next I received a letter telling me they were selling my debt to westcott. I rang again and they said I would need to ring westcott and arrange to make monthly payments with them, which I did. I never received any default letters or missed any payments. Recently I found out lloyds issued a default for the £1800. I rang and was told they told me on 'numerous occasions' it cld affect my rating and they don't need to send default notices as it's for an overdraft. Is this correct and is there any way of getting it lifted? I raised a complaint but it was overturned. I've tried to talk to a manager in complaints at lloyds but no one calls back. Is there anything I can do? I also have a credit card debt with lloyds that I pay each month. Any advice much appreciated...

YorkshireBoy

Lily4390 wrote: »

I raised a complaint but it was overturned.

So have you had a decision from the Financial Ombudsman yet, or are you still waiting?


You did refer to the Ombudsman?

Thrugelmir

Overdrafts are repayable on demand. It's in the terms and conditions that you signed up to. So there's no requirement to notify you.

Lloyds and Halifax are part of the same banking group.

Lily4390

Not yet, but that was to be my next step. Just wondered if anyone had any luck in a similar situation?

YorkshireBoy

Lily4390 wrote: »

Not yet, but that was to be my next step.

You might be cutting it fine, depending on when you raised the complaint "last year", as the FOS say...

If the consumer fails to refer the complaint to us within six months, it is unlikely that we will be able to consider the merits of their complaint.

Just wondered if anyone had any luck in a similar situation?

Does it matter? Referral costs nothing! If I understand you correctly, the last communication you had from them prior to them selling the debt to Westcott was when they said, verbally, your "monthly payments were fine". I would imagine that would add some weight to your FOS referral?

happy_bunny_2

From what you describe, the worst you should have on your file is an arrangement to pay.

But if they didn't inform you about negative info as a result of monthly payments, you could argue against that.

Did you complain in writing or via phone? Did they send you a final response including the FOS leaflet?