Default on credit report

Papacass01

My wife, unbeknown to me at the time, has entered into a DMP. I had a joint account with Lloyd's, which she did not use, but I used every month with an arranged £300 overdraft. Money was paid into account each month to clear overdraft and showed a positive balance on the account on a monthly basis.

My wife appeared to enter a DMP at the same time my overdraft was - £270. I was first alerted to the fact there was an issue with this account when I tried to pay money into it and it kept bouncing back. I telephoned Lloyd's, and operatives at Lloyd's could not offer an explanation as to why account was not allowing payments. A week later my app not longer showed my current account online. I was offered no explanation by Lloyd's as to why my account was closed. The only coorespondence I received from Lloyd's was notice that because I could not agree a payment plan my debt was being transferred to a debt recovery firm.

I subsequently contacted the debt recovery firm to arrange payment in full of the debt and at the same time registered my dissatisfaction by the way I had been treated by Lloyd's and felt that the course of action was unnecessary. DRF suggested that I query the debt rather than pay it in order to get a full explanation for the action they took. I subsequently received a letter from the DRF informing that the case was being investigated with no dterminable timescale.

I now find that I have a default on my credit report and my credit score has dropped from 999 to 515.

Should I wait for investigstions to be completed before paying debt, which I clearly owe? Or should I pay now and then complain to Lloyd's.

If I pay will default still remain registered to my credit report?

[Deleted User]

Yes, the default will remain. However, a settled default will look better than unsettled.

Craig1981

as a DMP is not legally binding, you could argue the fact that the account was always up to date, but you may be wasting your time

i would clear it like you have said. default will show settled, and will fall off after 6 years.

dont worry about the score, lenders dont see this

D_M_E

It looks as though the default is solely as a result of your wife's DMP.

If this is the case then write - not phone - a letter of complaint to Lloyd's asking for the default to be removed as you yourself were not responsible for your wife's DMP and had no knowledge of it.

Also point out that their actions in blocking the account prevented you from clearing the overdraft, resulting in the default.

[Deleted User]

But both parties are responsible for the actions on a joint account