Lloyd’s default advice

AMB1994

Hello, 

I am looking for some advice on a default registered on my credit file from 2017 from a Lloyd’s planned overdraft of £1500. 

When I went to university I applied with Lloyd’s for a student overdraft, after 3 years of university it changed to a graduate account. I did not manage to graduate with a full degree only a diploma as I really struggled with the course and was barely able to complete the three years. Once leaving uni my financial situation was really poor, I was disappointed with how I had done and struggled to find a regular job whilst trying to find a way to finish my course through the open university. Sorry for the extra detail but basically I am trying to explain how my finances/career/life prospects and mental health were just in a mess. All of my own doing for applying for a course that was much too hard for me and not coping well with pressure, I only had a few bills but was struggling to keep up with them, so at some point in 2017 I had a direct debit set up for a phone bill that was rejected leading to a returned direct debit fee, this pushed my over my planned overdraft and so on top of that I got some overdraft usage fees which I couldn’t pay off. Due to these fees I ended up going £41 over my planned overdraft and then Lloyd’s told me I had to pay back the full £1541 pounds of the overdraft which I couldn’t do and passed my account over to a debt collector who registered a default on my credit file. I have never been at a point over the last 3 years that I have been able to pay back this lump sum which is a massive amount for me and am only now trying to get my life together and get on top of my finances. I know this is all my fault, I borrowed that overdraft money from Lloyd’s and need to pay it back but I now have a default on my credit file and I am hoping to go for a mortgage at some point in the near future and know that this is a large default on my credit file that is going to make that difficult. 

Is there ANY way that I may be able to write to Lloyd’s and request to have the default removed. I know that the fees are standard and everyone has to pay them but there was no chance I was able to pay back the £1541 lump sum when I had not had a job for nearly 4 years and it is frustrating that it was due to the fees that pushed me over me overdraft, when I got the letter  from Lloyd’s asking me to pay back the full amount 3 years ago I was already In such a bad state that I wasn’t able to deal with the problem. 

Sorry for the long winded post any advice would be appreciated.

[Deleted User]

Very unlikely, as it was applied correctly. But it will drop off in three years, so you can use that time to clear it, and save fo your deposit.

You have a long way to go before applying for a mortgage, so it will make little practical difference.