Lloyds Bank - Defaulted Accounts

cross90

Hi, Unsure if I have posted in the correct area of the forum. Feel free to move my thread as needs be!

I am looking for some advice on my current situation with Lloyds Bank and my two defaulted accounts they have now passed onto two separate debt collections agency's.

The accounts which were originally student accounts both had their overdraft privileges taken away almost over night which left both incurring extortionate charges month on month, which I simply could not afford to keep up with never mind clear the accounts themselves.

I sent a letter to Lloyds explaining my current financial situation and that I found the charges being incurred on the accounts un-just and asked for some kind of assistance or realistic payment plan (Calls with themselves to resolve the situation became scripted nonsense and little help)

I received no response to this letter, but instead a letter headed by SCM solicitors which I called them about immediately and was advised by one of their agents "Don't worry about it its just us, not an actual solicitor" and that no action would be taken against my accounts until I received a response to my initial letter as they had put my accounts "On Hold".

Little over a month passed and too my surprise I receive a letter from two separate debt collection agencies demanding repayment in full of both accounts.

I have spoken to both agencies and provided them both with my financial ombudsman ref' number. Who were suprising helpful and friendly (Worlds apart from Lloyds)

So yeah, thats it as it stands... Waiting to hear whats next.

As it stands I'm recently graduated with a screwed credit rating and two defaults which if not sorted by way of a miracle I see no chance of getting a decent mortgage when I do start earning a decent salary in the coming year.

I know I haven't asked a specific question here, but any words of wisdom or advice on the whole thing would be greatly appreciated.

Also if you've got this far, thank you very much for taking the time to read all that.

grumbler

cross90 wrote: »

The accounts which were originally student accounts

I thought one could have only one student account.

both had their overdraft privileges taken away almost over night

Before or after you have graduated?
If the latter, then it hardly was a surprise. Why have you not applied for a graduate account?
If the former, it's very unusual. Was it because you had two student accounts?

cross90

Hi,

They were removed prior to my graduation by a few months.

As far as I am aware they were student accounts, could view them together when logged into my online banking.

I could be wrong, 1 could have been a standard account. I just always classed them as my student accounts as they were opened for that purpose.

OD of 200 on one and 1500 on another.

grumbler

Student accounts typically come with 0% overdraft.

MSE article: Student Bank Accounts

cross90

Not when all overdraft privileges are removed from said account...

They incur charges very quickly.

grumbler

You missed the point. Were both overdrafts 0%?

cross90

Ah apologies.

Yes

grumbler

Then it's the most likely reason why both overdrafts were pulled:

You can only have one Student Account with us in your sole name and you cannot have a Student Account with another provider.

http://www.lloydsbank.com/assets/media/pdfs/current-accounts/student_account_welcome_pack.pdf

cross90

The issue lies more in the current situation with the accounts, I did not choose to open two student accounts. I had 1 original student account and opened another account via the online banking 'Open an additional account' button, initially just to use for online purchases, paypal etc.

The second account had a basic £200OD I did not even request.

I now bank in an old bank account I held with Barclays from years ago and am quite happy with it so am not looking to resolve the issue with these accounts to continue banking with Lloyds.

The issue lies in the current over drawn accounts which have defaulted and what I can do now to minimize damage going forward or resolve the matter all together

Archi_Bald

cross90 wrote: »

The issue lies in the current over drawn accounts which have defaulted and what I can do now to minimize damage going forward or resolve the matter all together

Simple answer - pay your debts. The sooner you will do that, the sooner the bad debt markers will come off your CRA files (even though you will have to live with them for a few years yet). Only thing you can do to minimise damage is not to default on debt in the future.

You can check your CRA files for free on noddle.co.uk