Case for Default removal? - Lloyds TSB Default - Successfully Removed

Simon.Khadija

I have a default registered on my Credit Report from a Lloyds TSB Duo Credit Card.

A bit of background, I had a little bit of debt that I was struggling to repay on my graduate wage. So I entered into a DMP with StepChange.

Now, the Lloyds Duo was actually only £589 but StepChange wanted to know all my accounts, so although I could have carried on paying this as normal, it was entered on the DMP.

I made the first payment via StepChange in April 2013, and then subsequent payments in May, June, July and August.

This is where I think I have a case. They applied the Default in the 5 month which is August. The exact date is 29/08/13.

After that payment in August via Stepchange, my financial situation changed, and I was in a better financial situation to make the normal payments (extra in some cases), and with all my accounts, this was fine, everything was back to normal.

When I phoned Lloyds, I was sent to an off-shore call centre, and I was explaining to them that I would be exiting the DMP and making the payments myself. When I logged into my online banking to make a payment, my credit card was no longer visible.

I phoned back, and again sent to an off-shore call centre, and they said that it wasn't a problem, I could just set up an Standing Order, which I did.

So from September until Feb 14 (when I cleared all my debts in full) they are saying my account was defaulted.

Do I have a case to argue this with Lloyds?

Below is the image from my credit report.

fermi

Once defaulted on your report the monthly status code remains a D no matter what you are then paying monthly.

It's just the way these things are shown and not a new default each time. It's just saying the account status is defaulted, which it was.

Simon.Khadija

fermi wrote: »

Once defaulted on your report the monthly status code remains a D no matter what you are then paying monthly.

It's just the way these things are shown and not a new default each time. It's just saying the account status is defaulted, which it was.

I understand that part, but I am wondering if they applied it to early.

They have markers saying I was upto 3 months late with a payment, and then it goes into Default.

I was not told it was going to Default, and I informed them I would be making up for the payments missed, and then carry on as normal making the payment.

The account default date is 29/8/13 but this i the 5 month, I thought it had to be 6 months before a default could be applied?

fermi

Old Technical Guidance can be found archived here:

http://webarchive.nationalarchives.gov.uk/20100428141142/http://ico.gov.uk/upload/documents/library/data_protection/detailed_specialist_guides/default_tgn_version_v3%20%20doc.pdf

or here:

http://www.experian.co.uk/www/pages/downloads/compliance/guidance_on_defaults.pdf

Creditors and companies should have followed those up until 01/01/2014.

chanz4

a default can be applied once an agreement is defaulted

Simon.Khadija

fermi wrote: »

Old Technical Guidance can be found archived here:

http://webarchive.nationalarchives.gov.uk/20100428141142/http://ico.gov.uk/upload/documents/library/data_protection/detailed_specialist_guides/default_tgn_version_v3%20%20doc.pdf

or here:

http://www.experian.co.uk/www/pages/downloads/compliance/guidance_on_defaults.pdf

Creditors and companies should have followed those up until 01/01/2014.

Thank you for linking those.

chanz4 wrote: »

a default can be applied once an agreement is defaulted

So in effect, after the first 'reduced' payment that was made by StepChange in April, they could have applied a Default?

I just think the whole thing is a big miss-communication. I understand that I made reduced payments but this was for such a short amount of time and then I told them I would be making up for the missed payments, and continue as normal.

As soon as I did that, they applied the Default.

I am pretty sure that I had no warning of this because I had already told them I wouldn't be using the DMP, and that was in August. Then they applied it, but surely they would have sent me something first?

fermi

It can be complicated as there usually several factors to consider as to when a default can or should be recorded.

It is no-where near as simple as chanz4 likes to pretend.

That is why I posted the links to the ICO guidelines, rather than saying yes it is fair, or no it isn't.

What you need to do is with the knowledge of your situation, what you did and said, and what they did and said, have a good read through the guidelines and try to work out if based on those a default at that stage was fair.

If you conclude it's not, that you should have been warned, or whatever, then make a formal complaint.

Tell the company it's a formal complaint that you intend to take to The Information Commissioner and Financial Ombudsman if the credit report is not changed.

Simon.Khadija

fermi wrote: »

It can be complicated as there usually several factors to consider as to when a default can or should be recorded.

It is no-where near as simple as chanz4 likes to pretend.

That is why I posted the links to the ICO guidelines, rather than saying yes it is fair, or no it isn't.

What you need to do is with the knowledge of your situation, what you did and said, and what they did and said, have a good read through the guidelines and try to work out if based on those a default at that stage was fair.

If you conclude it's not, that you should have been warned, or whatever, then make a formal complaint.

Tell the company it's a formal complaint that you intend to take to The Information Commissioner and Financial Ombudsman if the credit report is not changed.

Thank you for your help. You have been very helpful.

chanz4

fermi wrote: »

It can be complicated as there usually several factors to consider as to when a default can or should be recorded.

It is no-where near as simple as chanz4 likes to pretend.

That is why I posted the links to the ICO guidelines, rather than saying yes it is fair, or no it isn't.

What you need to do is with the knowledge of your situation, what you did and said, and what they did and said, have a good read through the guidelines and try to work out if based on those a default at that stage was fair.

If you conclude it's not, that you should have been warned, or whatever, then make a formal complaint.

Tell the company it's a formal complaint that you intend to take to The Information Commissioner and Financial Ombudsman if the credit report is not changed.

as long as a notice to default has been issued, its very easy

fermi

Not in the slightest that bit simple, as there may be circumstances where doing that would be very premature and unfair. Likewise, there are cases where the creditor should have issued one long beofre and did not, unfairly prolonging the time that adverse data remains. That is if a warning or notice is issued at all, which is not always the case.

chanz4

fermi wrote: »

Not in the slightest that bit simple, as there may be circumstances where doing that would be very premature and unfair. Likewise, there are cases where the creditor should have issued one long beofre and did not, unfairly prolonging the time that adverse data remains. That is if a warning or notice is issued at all, which is not always the case.

sorry but your wrong on this one,


http://www.stepchange.org/Debtinformationandadvice/Whatyourcreditorscando/Defaultnotices.aspx