After 5+ years of paying off, Lloyds only just added Default

BossHogg

Back in 2013 I hit the buffers and ended up having to setup a Voluntary Arrangement (via Payplan) with my creditors. I've been paying them off ~£1k / month since then and have now just finished paying them all back.

To my horror I found that Lloyds current account had not declared Default way back when we entered the arrangement, and instead left it until March this year to transfer the remaining ~£2k to a debt recovery firm who then issued the Default.

It seems so unfair that I've been working hard to repay and clean up my history, only to have a new stain added 3 months ago, that will presumably stay for a further 5 years! :mad:

I presume that there is no-one I can complain to as it is factually correct on my credit file, even though the original Debt & Plan was established 5 years ago!

[Deleted User]

Ask them to backdate to no more than 6 months after you entered the AP.

BossHogg

Not sure who I ask or from what you say how I go about asking for this? Any more detail would be really appreciated.
I also worry they will have zero interest in me now that the debts have all been settled.

[Deleted User]

Start with the DCA who issued the default. If that doesn't work, go back to Lloyds. Failing that, escalate to FOS.

You need to ask them to backdate it to the appropriate period.

Willing2Learn

Use the guidance within the thread below and when you write your letter quote the ICO from post #4. If you need to escalate the complaint after writing to the DCA & Lloyds, then I suggest you write to the ICO instead of the FOS, as this is an information-related complaint.


https://forums.moneysavingexpert.com/discussion/5598629/punished-for-dmp

BossHogg

Thanks for advice and links. Seems a very common problem relating to overdrafts.

I!!!8217;ve used the contact us details for both Westcot and Lloyd!!!8217;s to lodge complaints about the Default (and late payment markings during their handover) so will let you know any outcome.

Is it ok to use email and complaint forms or is this something that really should be a wet-ink signed letter (to CEO or Complaints dept)?

Willing2Learn

If it were me, I would send them a letter, marked 'Complaints', to make sure it goes to right department.

BossHogg

really great outcome... DCA said they had not bought the debt so forwarded complaint to bank who have very quickly established that process was not followed back in 2011 so have not only removed default (over 6 yrs) they have refunded all the charges and interest that had randomly been added, and given us an extra few hundred by way of apology.

Wow.