Default whilst non-domicile

joshuaisaac

I emigrated to Australia for three years, and have recently returned home. I had an overdraft with Lloyds TSB on my UK account, whilst I was away the overdraft ticked into the red, fees spiraled, and according to my Noodle credit check the account eventually defaulted for £2196 in May 2012.

I emigrated to Melbourne in December 2011, and have extensive proof of this. Can I use this to dispute the default, and claim that I wasn't at the address? I didn't receive a single letter or phone call about the debt whilst I was away, as the account was registered at a house in which I no longer lived, if I had been aware that I was being threatened by a default I'd have paid off the debt with funds that I had in Australia.

I'm perfectly happy to settle the debt with the debt agency (Lowell). My problem is mainly the default - can I dispute it based on the fact that I received no warning nor communication of the debt, as I was non-domiciled five months before they marked my account? If I offered to settle the debt in the next month, would I be able to swing the default being removed from my credit file? I'm pretty sure that Lowell are aware that I wasn't in the country, because looking at all the correspondence that has built up in the past three years, they gave up contacting me over a year ago.

Basically, I'm interested to know my options, as I have just been denied credit to open a new current account (!) and I'd love to get this default off my history.

I have no other bad debt, so this default is pretty much the main thing blackballing my score at the moment. I appreciate removing it entirely is probably a pipe dream, despite having extensive proof that I've been out of the country for three years.

If it is stuck on there, and I settle with Lowell, is my credit rating still likely to remain at trash status for the next three years?

Any advice would be greatly appreciated!

NICHOLAS_2

Why pay them anything? They've defaulted you now, your default will stop you getting credit. I have had defaulted accounts before, many letters from lowell and their ilk, never paid them anything.

You can get paid bank accounts now, £10 a month and it's basically a current account.

You should have looked at your account with lloyds before you left, settled up and closed it.

Thrugelmir

joshuaisaac wrote: »

can I dispute it based on the fact that I received no warning nor communication of the debt,

Presumably you were aware of the debt at the point in time you left the UK.

whilst I was away the overdraft ticked into the red,

An overdraft is being in the red.

meer53

Why didn't you let them know you had moved ? Surely if you emigrate you would close any unused accounts ?

rizla_king

Dont think you can complain about the fact you were not contacted as you could have closed the account or given contact details. Bizarre choice to emigrate leaving an unattended account that could go into the red.

Only point of complaint you might have is if the reason it 'ticked' into the red was somehow an unfair one? That you dont explain.