Lloyds default preventable?

littlestars

Hi
I have a unusual scenario I've had an overdraft with tsb since I was at uni. Since its now totally under lloyds. It was a student then graduate account (not sure if there's significance in that) value = £2,000.
The account opened 1999 in (graduate 2003) 2005 got married. Hubby wanted joint account so swapped banks but couldn't afford to pay it off in full. So for 9 years I paid money into the account to cover the interest, fees and obviously a small amount came off the balance. June '14 hubby left. Have a account froze from interest and charges an paid £25-30 off the balance. Fast forward to April '16 they refuse any further payment plans. Balance £1280.
Lloyds have credited me £275 over the last 6 months to compensate me for their shortcomings via complaints. I made them a formal (recorded post) offer for the final balance in may '16 of £900. They've refused. Been with the odbudsman the last 8 weeks and he sided with lloyds. The account is now £960.24
I only had the £900 was because I had an unexpected ppi. The account will be passed to a solicitor soon. I am still holding £900 in my account ear marked for this.
Do I stick with my guns and let it go to a solicitor then try and get the default remover or should I pay the £900 off and ask them to allow for two further monthly payments. They are pushing for the full balance but I can't find £60 out of thin air I'm a single parent who is self employed and my income is limited.

sourcrates

Hi,


It wont go to a solicitor, first of all it will go to a collection agency such as wescot perhaps, who will demand full payment on behalf of there client, so again useless, and ignore them.


A few more letters may materialise, there's a chance they may offer a discount after a few months, or maybe not.


Give it long enough and Lloyds will sell on the account to a specialist debt purchaser such as Lowell maybe, who will then bite off your hand to settle for around £400 or less.


Just bide your time and let nature take its course.

littlestars

My biggest worry as terms of my divorce I need to be able to take on a mortgage in my own right within 5 yrs of divorce or I have to sell the family home.

If the default is recorded it will prevent me getting a mortgage.
If I allowed it to go as far as suggested above. Where does that leave me in regards to that?

sourcrates

littlestars wrote: »

My biggest worry as terms of my divorce I need to be able to take on a mortgage in my own right within 5 yrs of divorce or I have to sell the family home.

If the default is recorded it will prevent me getting a mortgage.
If I allowed it to go as far as suggested above. Where does that leave me in regards to that?

Right ok, that does change things somewhat, I'm actually surprised a default has not been registered already, but if that is your main concern then unfortunatly the only way to avoid that is to settle in full.

I am somewhat surprised Lloyds are arguing over £60 to be honest ?

Have you put the offer into them in writing, to there head office ?

sourcrates

If the intention is to prevent any further damage to your credit file, then pay the £900, send them a letter stating you'll pay the remainder by such an such a date.


Don't seek there approval, just do it and have done with it.

littlestars

thankyou for suggesting I checked my credit file. Despite my standing order remaining unchanged Lloyds have registered two late payments on my account (a period of which there was a complaint going through the odbudsman).
at the moment I can send them £800 due to school uniform expenses ive had to use a little of the money.
so if I send them £800 and tell them the rest will be paid by Christmas (remaining £160.24) would this prevent further action being taken as all they have suggested so far is the full outstanding would be sufficient not a penny less.