Lloyds and moorcroft payments

nem39esis

Short story is, I have a closed account with Lloyds following a switch. the account still had an overdraft. Lloyds closed the account, when I called to arrange payments I was told id have to wait until it had been passed on to the collections team-fine I thought.

it then gets passed to Moorcroft in which we arrange for payments every month.
on checking my credit file its now showing that my Lloyds account is in areas?


This doesn't sound correct as a) nobody mentioned this is what would show or that it would have such a negative impact.
b) how can my account be in arears if it is closed and im making payments?


Have I been missled here?

[Deleted User]

It's in arrears because it should have been settled immediately on closure.

Increase your payments to get it cleared.

kwame41

You havent been misled.

Sometimes lenders sell debt to third parties to collect. Usually at a lower amount than originaly owed. Alternatively, the lender will use a third party to collect the debt but still 'own' it.

Without knowing more its difficult to give a deffinitive answer. However, I suspect its the latter in this case.

Either way your a still in arrears.

Samsung_Note2

Might be helpful knowing the amount...obviously sounds harsh if £50 and quite reasonable if £5000.

Ive switched to just about every bank possible (no negative effect on credit file oddly enough) and always thought it quite straight forward how they would take care of the switch and what to expect.