Lloyds default for overdraft
Hi - newbie here hoping for some help/advice.
My husband has a Lloyds bank account with an overdraft facility - he’s stopped using the account since we moved house as we use a joint virgin account. I was transferring money across each month to ensure the overdraft was covered but admittedly through my own fault forgot the last couple of months due to a lot going on in my personal life!
As we moved the post was going to his mums so he hasn’t received any letters notifying money needs to go into the account. Again his own fault it should be up to date I know!
They closed the account 10 days ago and I realised when I went to transfer some money in on Friday. The account has been closed as the overdraft was in arrears and it’s been passed to debt collections. We rang yesterday after a very stressful bank holiday and explained and confirmed we could repay the amount in full if they will remove the default. The letter asking him to repay hasn’t yet been sent so it’s v early stages but they advised unless it’s a complaint and accepted as a complaint they are unlikely to remove it even if we repay in full.
It seems very harsh they won’t do this when it was caught so quickly and we can repay for it to impact us for 6 years.
We have lodged the complaint and await the outcome but they are sending the debt repayment plan information to us in the meantime.
Any suggestions of how we can try resolve this would be greatly appreciated. If repaying how in full won’t remove the default, would it benefit to do this in full, or pay monthly?
Thanks in advance.
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