Lloyds closed bank account with £1800 debt??!

Jezebell1

My partner had a current account with lloyds which had a £1500 over draft which he had used every penny of, he lost his job 8 months ago and was unable to keep up with the over draft charges so they made him over his overdraft so other unplanned overdraft charges which added up and left him in £1800 debt. When going into lloyds to try and see situation of account, he was told he only had a savings account under his name and he current account had gone. He has not received any letters from lloyds stating that they were to close the bank account or what has happened to the outstanding balance? He also has not received anything from a 3rd party company saying the debt has been passed over or anything explaining what has happened to the account or the debt?? We are really concerned about this and would appreciate anyone's help!!!!
Many thanks

freezspirit

Has any money been taken from the savings account to pay back debt then they closed it?


Or theres been a human/computer error when someone else has switched bank accounts and they have closed yours. A digit out is all it takes

worried_jim

What does he see when he logs into Internet banking?

When an account has gone "so" bad it is closed and its value just becomes a debt owed, so if he paid in £1800 he wouldn't be able to start using the account again, however this doesn't happen in just three months so some where there is some information missing from his situation.

Horseunderwater

Why worry about it. It's up to Lloyds to write 2 him and ask for the debt to be paid back & if they have forgotten to do so for the moment put it to bed. If he has not yet found a new job, he needs to put his mind fully 2 that task. If they forget for 6 years from 2014, then by 2020 it cannot be chased for anyway. Keep a note of date he went into Lloyds to check the account & any statement/paperwork 4 next 6 years & wait.

Archi_Bald

Horseunderwater wrote: »

Why worry about it.

Because it might ruin his credit history for years to come.

OP, what shows on your husbands's credit files?

BMN

Horseunderwater wrote: »

Why worry about it. It's up to Lloyds to write 2 him and ask for the debt to be paid back & if they have forgotten to do so for the moment put it to bed.

That's completely the wrong attitude to take in my opinion. You should be proactive - why do you think there is a "Debt-Free Wannabe" section on these forums?

Horseunderwater wrote: »

If he has not yet found a new job, he needs to put his mind fully 2 that task.

I do agree that this should be the priority though. But it doesn't mean you can't do other things.

Horseunderwater wrote: »

If they forget for 6 years from 2014, then by 2020 it cannot be chased for anyway. Keep a note of date he went into Lloyds to check the account & any statement/paperwork 4 next 6 years & wait.

Hmmm...

The creditor can still take out a CCJ against you during that time. I wouldn't say it was wise to just ignore the debt.

Even if they don't take out a CCJ, the debt will only become statute barred after those 6 years if you don't make a payment and if you don't acknowledge the debt during that time.

Whether statute barred or not, the debt will still exist and they can still chase you for what you owe. It just means that it will be unenforceable.