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

fermi

No you are wrong as you are confusing a default notice under the consumer credit act with notice of intention to file a default with the CRAs and a subsequent default registered on credit reference files.

They are not the same thing, although in some cases they will occur at around the same time or together, which is what that link is getting at, but not actually explaining very well.

Thrugelmir

Simon.Khadija wrote: »

When I logged into my online banking to make a payment, my credit card was no longer visible.

Would appear that

The account has been referred to a collection agency or in-house debt collection department.

fermi

http://www.financial-ombudsman.org.uk/consumer/complaints.htm

Simon.Khadija

Hi all,

I posted a month or so ago about my chances of getting a Default removed from my records, but the thread has disappeared so I have created a new thread just to let you know that I have successfully removed it at the second attempt!

So hope is not lost if you have tried before and failed.

The first time I tried, was a few months after it had been applied, I e-mail the CEO and explained why I thought it was unfair, and also went with a little sob story. It didn't work. They phoned me to explain, and then sent a letter, then when I challenged it, they just sent another letter outlining the same as before. They fobbed me off and said it couldn't be removed.

I e-mailed the CEO again, and this time I just set out a timeline of events, and again explained why I thought I have the right for it to be removed. The same woman picked up my case, she wrote another letter saying that I haven't given them anymore evidence, and therefore nothing would change.

I tried to phone to speak to her last week but never managed to speak to her. I spoke to one of her colleagues who was nice and understanding, and I briefly explained the situation to her without going into to much detail, I could hear her typing away so I assumed she was taking notes, I dropped in a couple of lines about ICO Guidelines and she told me she would get the original complaints handler to phone me back later.

I didn't get a call until Monday when a gentleman told me that he had now been passed my case. I had a good talk with him about everything, went through my situation and everything. He was quite stubborn at first and explained everything to me, and was saying it was recorded accurately. I could hear him clicking away, and he was trying to pull up the Default letters that had been sent to me. He said one had been sent to me at the end of August, and I explained that I had definitely called them to inform them about a change in circumstance and that I would make the payments as normal plus the arrears. He thought that perhaps because there letters are automated, the letter was being processed as I called and it never got picked up. He said that he will have a look into it and get back to me by the end of the day.

Within an hour he was phoning me to tell me that he would be removing the Default with all 3 CRA's. He said that because it was for a small amount (<£600) and cleared within a few months, and I was under the impression that I was paying it off before Defaulting then he was able to remove it.

He said it would take around 28 days to come off my records, but I've checked Experian this morning and it's already been deleted.

My credit score jumped up 222 points as well!

Just a bit of hope out there for anyone with a legitimate reason for getting a default removed. If at first you don't succeed, try and try again!

This has been on my account since August 2013, and I have been refused credit since then, obviously because the Default was there. Is it being cheeky if I ask for a bit of compensation because the held me back? Or am I pushing my luck?

Simon.Khadija

Fermi...Thanks for that.

I used the search function with my user name, and it only showed me the other 3 threads I had created, and not this one.

If this can be deleted then because the original thread is more useful.

fermi

Merged and tidied up.

Simon.Khadija

Just checked Equifax and it has been removed from there too.

Only CallCredit (Credit Compass?) are yet to remove it, but I assume they just take longer than the others.

mwddrwg

Sorry for hijacking your thread, but I have a quick question.


I have a similar situation with an old HSBC overdraft which I was paying back monthly but couldn't afford the £300 they wanted in one go to clear it. Have finally cleared it via Marlin debt-collection agency this month but I have disputed the default on my file twice now with no success.


I was making monthly payments towards the balance every month without fail and my argument is that I should have been allowed to continue with it rather than HSBC selling off the debt. I only had £300 to go at that point but was a lot to find in one go.


Question is: who do I contact to try to get the default removed? Noddle, Marlin or HSBC? Probably don't have a case, but I suppose you never know. It's killing my score at the moment and I've never ever missed or been late with any other payments.

Simon.Khadija

mwddrwg wrote: »

Sorry for hijacking your thread, but I have a quick question.


I have a similar situation with an old HSBC overdraft which I was paying back monthly but couldn't afford the £300 they wanted in one go to clear it. Have finally cleared it via Marlin debt-collection agency this month but I have disputed the default on my file twice now with no success.


I was making monthly payments towards the balance every month without fail and my argument is that I should have been allowed to continue with it rather than HSBC selling off the debt. I only had £300 to go at that point but was a lot to find in one go.


Question is: who do I contact to try to get the default removed? Noddle, Marlin or HSBC? Probably don't have a case, but I suppose you never know. It's killing my score at the moment and I've never ever missed or been late with any other payments.

No worries.

I told the gentleman that I spoke with that I would like something in writing just to confirm everything should they not disappear from my credit file. I have opened the letter this morning and he has given an explanation into the circumstances. I'll try and sum it up as best as I can for you.

So my balance was £626 at the time of entering the DMP. I was making a payment of £6.26 a month. I was looking at it like this was 50% of the minimum payment I should have been making, but the bank see is as a 1% payment of the total outstanding balance.

If I had carried on making this payment then the interest would have grown and grown so they place it on what they internally call an 'age-out' account. This means that the interest is frozen and the debt is passed to collections. In my case it was just internal collections.

He explained that they sent a Default Notice in August, probably around the same time as I called to advise I would go back to making the payments plus the arrears. He said that as it seems there was a misunderstanding about me clearing the balance, and then me actually clearing the balance in a short space of time (5 months after they placed the Default) then he would remove the Default.

He does also state that this isn't Lloyds admitting liability, so it seems like it was more of a good will gesture. So to answer the question I asked about claiming for compensation, I'm not going to be greedy and do that. I am grateful that he removed it for me.



The issue that I guess you will have is that although you were paying it off every month, you still Defaulted on your original agreement, and they have to record it accurately. Did they put you on a Payment Plan? How long were you making the monthly payments for? I think because mine was a short space of time, and my time-line added up then it helped my case.

I e-mailed the CEO and it got passed to Executive Complaints.

Good luck.