Lloyds Bank - Late payment marker for £7

Zenboor

So I have this lloyds cash account I opened back in 2007, For years they would not upgrade my cash account to a current account so in 2012 I switched to Nationwide to get a proper Current account. However, I made a crucial mistake by not closing my Loyds account immediately.

All my direct debits / standing orders were transferred over to my new Nationwide current account except for my annual AA membership fee which I had forgotten about until I was bombarded with calls from Lloyds' Indian call center about going overdrawn. That was last year, so I called them and paid the amount in full making sure that I was at least £1 in credit.

What the incompetent so-called consultant didn't explain was that there were charges going to be applied to my account! I only found about these last week when I checked my credit file to see a late payment marker for January because I had gone overdrawn by £7!! I've had no statements or letters from LLoyds in months so I wasn't even aware of these charges yet when I spoke to them they said they can't remove the late payment marker, not even as a good-will gesture.

I'm going to have to apply re-mortgage in September so I want to make sure my credit file is nice clean but this is just destroyed any hope of getting a decent rate! All for £7

I also have a Halifax account and they always send a letter BEFORE any charges are applied so you are given plenty of time to ensure sufficient funds exist in the account. However, Lloyds did not send me any letters or bank statements to inform me of this. Not happy at all!

Lloyds_Bank

Zenboor wrote: »

So I have this lloyds cash account I opened back in 2007, For years they would not upgrade my cash account to a current account so in 2012 I switched to Nationwide to get a proper Current account. However, I made a crucial mistake by not closing my Loyds account immediately.

All my direct debits / standing orders were transferred over to my new Nationwide current account except for my annual AA membership fee which I had forgotten about until I was bombarded with calls from Lloyds' Indian call center about going overdrawn. That was last year, so I called them and paid the amount in full making sure that I was at least £1 in credit.

What the incompetent so-called consultant didn't explain was that there were charges going to be applied to my account! I only found about these last week when I checked my credit file to see a late payment marker for January because I had gone overdrawn by £7!! I've had no statements or letters from LLoyds in months so I wasn't even aware of these charges yet when I spoke to them they said they can't remove the late payment marker, not even as a good-will gesture.

I'm going to have to apply re-mortgage in September so I want to make sure my credit file is nice clean but this is just destroyed any hope of getting a decent rate! All for £7

I also have a Halifax account and they always send a letter BEFORE any charges are applied so you are given plenty of time to ensure sufficient funds exist in the account. However, Lloyds did not send me any letters or bank statements to inform me of this. Not happy at all!

Hi Zenboor,

I'm sorry to hear about the problems you've had. If you haven't already done so, you may wish to submit your complaint to us. You can do that using our online form here. You can also find info on our complaints process on this page.

Thanks

James

Tixy

It would be worth following up your phonecall to them with a written complaint.

If they definitely didn't send you a statement after the charges had been applied then you have good grounds to complain and get the item removed from your credit file.

Zenboor

Thank you. I have submitted an online complaint.

I really hope I can get this resolved and the late payment marker removed.

Zenboor

Tixy wrote: »

It would be worth following up your phonecall to them with a written complaint.

If they definitely didn't send you a statement after the charges had been applied then you have good grounds to complain and get the item removed from your credit file.

I have filled in the online form. If this doesn't work I will follow it up with a written complaint.

Thanks for your advice.

stclair

I always thought AA fees was collected by re-occurring payment from your debit or credit card?

Zenboor

stclair wrote: »

I always thought AA fees was collected by re-occurring payment from your debit or credit card?

I'm sure the LLoyds' consultant mentioned the payment was setup as a CPA or something like that.

Zenboor

UPDATE

After completing the on-line complaint form, I received a phone call from LLoyds within 2 hours. They've basically agreed that the late payment marker should be removed from my credit report and they have also credited my account with £25 + £7 for mobile telephone call charges.

Very good customer service. I'm impressed.

RMS2

stclair wrote: »

I always thought AA fees was collected by re-occurring payment from your debit card?

And where do you think the debit card gets its funding from? And if there is no money in the account or not enough, what do you think happens?

stclair

Zenboor wrote: »

I'm sure the LLoyds' consultant mentioned the payment was setup as a CPA or something like that.

As part of the switching process CPAs do not get switched as far as I am aware.

I'm doing a switch at the moment and First Direct made it clear that CPAs will not get switched and I had to notify the organisations myself.

stclair

RMS2 wrote: »

And where do you think the debit card gets its funding from? And if there is no money in the account or not enough, what do you think happens?

CPAs are effectively a POS payment so they can still debit an account that is closed or has a nil balance if the payment was authorised prior.