TSB Register Default 8 years after Non-Payment

notpropaganda73

Hi guys,

My head is melted here. It's a long, convoluted story (I'm sure we're all the same), but like many I got into a lot of trouble with debts and tried sorting via a DMP. While on the DMP, an old loan account from TSB reared it's head - this was my fault for not registering it initially, I had actually given money to a former friend (as I was abroad) to pay off the loan, but they took the money instead. I was young and stupid, but didn't know the loan was unpaid until I was on a DMP and started receiving letters from a debt collection agency, to my up-to-date and current address (I'm guessing they used the electoral roll or something to track me down). I started making repayments on that loan for a few months before the DCA then sent a letter saying TSB have taken back the debt and they have no further information. 

So ensues a horrible experience for 2.5 years. TSB had an old address registered for me, one which I can't access due to aforementioned former friends... so they would send loan statements there, letters about my account, and I am assuming default notices. I would call to try and amend my address on the phone (while also getting threatening messages from those at the incorrect address, even though I know legally they couldn't do anything, getting any contact from them is horrific...), which TSB for security reasons would not do. They said I am registered for internet banking, but I couldn't access my account, and the only way to reset passwords/registration was, you guessed it, via mail. They helpfully suggested I go to my nearest branch and even searched for it while I was on the phone in spite of me telling them I live in Belfast and I know there are no branches, "It says here there is one 43 miles away Mr M?" "Oh really, where?" "Stranraer, can you make it there?" SO HELPFUL. I sent letters to them with my correct address and scanned copy of ID formally request address change, but still they would send info to that old address. 

Eventually it has come to a head this year when a new DCA took on the debt and, shock horror, were able to contact me direct at my current address, which I have now lived at for 6.5 years. I tried engaging with them a bit but TSB took the debt back off them and the cycle started again. I was in bits at this stage to be honest, but before calling them in a rage I decided to trawl through my old paperwork one more time, and there scribbled in my handwriting on top of an old statement was a phonebanking security number. I called them and was able to update the address over the phone. One more letter went to the old address which they told me they legally had to send as a security measure. 

Anyway, after all this, my details are right with TSB and I wanted to sort out the remaining balance. This was probably stupid of me but I refused to continue payments until they sorted out my address details as I didn't want further statements going to the old address - this was probably a bad move on my part as they sent so many letters there anyway, but I was so annoyed. Done is done in that regard. I still haven't received any letters to my correct address but upon checking my credit file yesterday, (as I do every month now), there on my Transunion file: LENDER: TSB Personal Loan. BALANCE: £1,619. UPDATE: 31/10/2022. STATUS: Default. DATE OF DEFAULT: 25/10/2022!?!?

So the timeline here is: 
Loan account opened: March 2013
Last payment: March 2014 (This was DD, I sent money from abroad in May 2014 thinking the account was settled)
DMP Started: January 2019
Repayments to TSB Loan Started: September 2019 - if only I'd known about statute barred debts at this point, so close to the 6 years.
Repayments Ended: May 2020
Default Registered: October 2022

I realise this is a very very very long post and apologies for that, but am I losing my mind in terms of fairness here? I have no problem acknowledging this debt and plan on repaying it, but I finally sorted my debts out back in 2019, defaults were all registered at that time, I am nearly halfway through the 6 year black marks on my credit file, and now TSB decide to register a default in 2022 as if I've just suddenly stopped payments to them? I've tried calling today but the collections lady said I would have to speak to the recovery team, 9am-5pm Mon-Fri about this. 

I realise I am not totally blameless here, I can't remember on my credit files from the past few years if the loan was ever appearing on them to be quite honest, but surely they will have defaulted the account before now even if they haven't reported to the credit agencies? I think I'm planning on making a formal complaint about it, I obviously don't have any dispute about the debt itself or the default, it's the timing of it, out of the experience of people here am I being reasonable or is this a lost cause? I'm just devastated if so, it will reset the clock on me for another 6 years in terms of my credit file and just the thought of that is overhwhelming... I don't know

sourcrates

Guidance states defaults should be applied after between 3-6 missed regular repayments, but it is only guidance, it`s not set in stone.

Your address issues are annoying, but once a DCA had done a trace on you, your current address would have become apparent.

The question is, did the account default previously, or not.

It`s entirely possible it didn`t default earlier, it`s common for unpaid debts to become delinquent, rather than defaulted, so a formal complaint to the TSB would be the way forward.

I would argue that the account should have been defaulted according to guidance, and that the date of default should be backdated to reflect this, add also that the issues over your current/previous address were handled very badly by the bank, and their debt collection process failures just added to the misery.

I would say that some sort of debt reduction, or even a complete write off of the outstanding balance would be appropriate in this case, in fact that is what I would push for.

fatbelly

It would be statute barred if you lived in Scotland!

You may find a subject access request to TSB useful - ask for copies of everything relating to the account. There's no downside.
It should produce the original agreement and any default notice.

If a copy of the original agreement isn't produced then do a cca request

notpropaganda73

Thanks guys, appreciate the replies. I was so downbeat yesterday about but feeling better today, will report back after I call them tomorrow! 

notpropaganda73

The interactions just keep getting better and better. Over an hour on the phone and placed on hold for most of that. They have told me that a default was registered in August 2014 on this account, and they had no record of the recent default October this year. I asked for the information to be posted out to me and was told that wasn't possible! I know that's not true and said as much, and said I wanted to know why a default is now appearing in October 2022. Placed on hold again and can you guess what happened? Yes, the line went dead. 

I called back and was told they are having technical difficulties so they can't access my account, and to call back again in an hour. 

I'm not sure how useful phone calls will be at this stage, am I best writing to them for a) a subject access request and b) a complaint re this whole process (I've read it's best to keep these separate as well rather than muddying things in one letter)? I was going to raise a dispute about the default date with Transunion as well but not sure how beneficial that is.

sourcrates

You are wasting your time on the phone, being passed from piler to post, then you get cut off, with no resolution, and the prospect of having to rinse and re-peat everything with a different call handler.

There is a better way, put it all in a written complaint, that way it will get to the right people, and should be dealt with accordingly, and if not, then an escalation to the FOS/ICO will be required.

It`s just far too complex an issue to be dealt with in 5 minutes over the phone, it requires investigation, and due diligence from those whose job it actually is to sort out these issues, complaints of this nature take time to resolve, it cannot be done over the phone.

notpropaganda73

Thanks so much sourcrates! 

fatbelly

You need some evidence of the Aug 2014 default. 'They said so on the phone' isn't enough.

Then they must delete your entry from all credit reference agencies (as it's now >6 years after that default)

If that doesn't happen, you escalate to the ICO I think, as reporting incorrect data is their area.

Sarahwithlove

I agree put the complaint in writing and request a copy of all information on file they have for you. I too would push for them to write this off as it's been handled so badly and if not at least make sure no interest/fees have been added during this time. 

notpropaganda73

The default is now appearing on both the Clearscore app and the MSE Credit Club report (which I think are Experian and Equifax?) so that's all the major ones accounted for now. 

I have received an acknowledgement of my written complaint with a reference number as well so hopefully I hear back before Christmas, though I know they have 8 weeks to reply