Pls help me with Lloyds/MKDP debt

yhdil

Dear fellows,
Please guide me that what should I do under following situation?


I had an account with the Lloyds Bank with the overdraft limit of 500. The account was over drawn by 215 and I got late on the last 2 instances due to financial troubles which resulted the Lloyds closing down the account in May 2012. I had to travel overseas in June 2012 due to sudden death of my father and I totally forgot about the issue.


In 2014 having requested credit report, I discovered the default noticed placed against my name by the Lloyds. This made me very annoyed as neither they informed me of anything during the closing of the account nor have they sent me any default notice to recover the debt.


I wrote to the Lloyds bank to provide me the details about the debt and the copy of the default notice. They wrote back saying that they couldn't trace my details and if I could provide them further information about the account. while I was about to reply them with further details, I received a letter from MKDP that the debt is now bought by them and I should immediately make them payment.


Having requested MKDP several times over the period of 6 months to verify the debt and provide me copy of the default notice, I have heard nothing from them apart from the acknowledgement letters saying that they are enquiring from the Lloyds bank about the debt. I then involved Ombudsman and ICO for the timely resolve.


Today, I received a final response from MKDP along with few bank statements on my name. They say that they couldn't provide me the agreement as it is a bank account and they do not have the copy of the default notice. The other problem is that all the statements are addressed to my old address which I left in 2010. I did change the address with the Lloyds bank but I fail to understand that how everything is addressed to the address which I left 5 years ago. Also, the final account balance in the statement does not match with the defaulted debt amount (default amount is 215 whilst the closing balance on statement is 275).


I am very happy to pay off in Full the owed amount but my problem is with the default in my credit file. I have never been notified of anything while closing the account and never been notified that the account is in collection and never been served any default notice. Now I am not sure if they had sent any correspondence to my old address but if they had then its their fault as I have proofs that I changed the address and did notify it to the bank.


Can anyone please suggest me that how do I deal with MKDP. I want to pay off the debt as it was genuinely owed by me but I don't think that it's justified that they keep the default account against my name. Had they contacted me I would at least have spread the debt and avoided the bad entry in my file.

sourcrates

Hi,
You would of received notice from the bank that you had an outstanding balance, you would get a default notice for an unauthorized overdraught, but they can send these at any time.

Your credit file will reflect how the account has been run, so cant be altered.

You obviously acknowledge the account is yours, if you want to challenge the amount they say you owe, then a simple letter to the bank will provide you a breakdown of account activity, apart from that, theres little else for you to complain about, you say yourself you "missed payments", just agree a repayment plan you can comfortably afford, if you cant take the hit all in one go.

yhdil

Thanks for the reply.


Are you saying that I can't have default notice issued for using overdraft?


My issue was slightly different. Since there record shows that I am still living at the address that I left 5 years back, it is very likely that they have sent such correspondence to that address despite the fact that I have updated the address with them.


Under such instance, the bank has not really served me any notice to act upon. Won't they agree to strike off the default if I pay them in full?


Thanks

sourcrates

In a word, No.

There may be an issue with them having the wrong address for you, but that would not constitute grounds for removing the default.

As far as i am aware, banks do issue default notices for overdraughts, and it may be that it went to your old address, you could perhaps challenge them on this, in order to get the default removed.

You could settle the account, and your file would be marked as "settled", but the default entry would remain for a period of 6 years.

Just because an account is settled, does not mean automatic removal of said default, you could try asking them, but there response would more than likely echo what i have just told you.