Bank Overdraft Default ?

jojororo

Hi,

I am currently paying off a DMP with PayPlan [per my other thread]

One of the debts is a Bank Account where I had an overdraft of£2250 but the account was overdrawn by £2369

The account is still live and has a status history for the last 4 years as BB

My question is - why would this debt not have been "defaulted" like the others when I started my DMP

If I paid it off now via a FFP would these BB payment still be showing on my credit history ? If so how long for ? Hopefully not 6 years :-(

The annoying thing is that the balance has not been going down over the last 6 years even though I have been paying approx £5-6 each month towards this particular debt. To clarify I had 3 different debts with Lloyds and they were taking an amalgamated payment to cover all of them. It seems that the portion for the overdraft account was not being credited - if it was then debt would have been under the overdraft limit and I would not have all theses BB's on my account

Can I challenge them on this and get these BB's status's changed ?

Why do you think this account was not defaulted like the other debts [loan and cc] ?

If I pay this debt off via a FFP - can they then default this account which would been it remains on my credit file for a further six years ?

Thanks.
Jo

fermi

Yes, it would stay on file for 6 years from the settlement date if not defaulted.

http://www.callcredit.co.uk/media/1741464/your-credit-file-explained-6-5.pdf

BB = General code to indicate the account is in sustained arrears i.e. 3 or more months/payments in arrears

If you think that is inaccurate/unfair, then yes challenge it.

ICO guidelines from the time.

15 Current accounts

Breakdowns on current accounts will happen in relation to overdraft facilities. We recognise this is a complex area because of the range of factors affecting the relationship with the customer, and the indicators in paragraph 10 above are of limited relevance.

On these accounts the following are indications of a breakdown.

• The customer has had an unauthorised overdraft for at least three months and the lender has demanded they put their account in order but the customer has failed to do so.
• The lender has closed the account (or would have done so if extenuating social considerations had not dictated otherwise) because the customer has failed to use it according to the original terms and conditions. (This includes situations where an account has been opened for fraudulent purposes).
• As a result of the way in which the account has been conducted the lender has asked for the return of the cheque guarantee card.
• The account has a debit balance (within or outside overdraft limits) but there have not been any or enough credits to service the debt for at least three months.