What happens to a dormant account that has monthly fees?

Benjamin4

That is a great idea - thank you!

Section62

eskbanker said:

I can't remember if sole trader accounts show on personal credit files, but checking the latter may indicate whether the account is still open and whether it's in the red or not, without necessitating any contact with Lloyds?

I wonder whether the account would show up on the OP's (current) credit files if it is linked to an address they no longer live at (and which hasn't been updated with Lloyds)?

It is a bit surprising Lloyds haven't attempted contact/tracing of the OP in all that time... and if Lloyds were reporting the account to the CRAs then either i) it wouldn't have been difficult for Lloyds to locate the OP or ii) Lloyds and/or the CRAs have been risking attaching information to the wrong person's file?

Nasqueron

eskbanker said:

Nasqueron said:

eskbanker said:

Nasqueron said:

Any debts would be statute barred if they were not acknowledged (such as paying towards them or writing to say you accept them) after 6 years so if it was dormant 14 years ago and not used since, chances are that they will have closed it and either written off any debt or held any balance in their internal processes.

Your choice to leave it or if you are certain nothing has been paid or put in writing in the last 6 years, send them a request to hunt it

The account had £600 in it 14 years ago, and OP believes that it may have been subject to a £5 monthly fee, so it would have taken ten years to deplete the balance at that rate, and OP would only actually owe a (net) debt to the bank within the last four years....

 hence stating facts not speculation

Both posts stated outcomes predicated on assumptions?

6 year rule on debt is fact

A dormant account will either be closed and any debt written off (due to 6 year rule) or funds held internally - fact

eskbanker

Nasqueron said:

eskbanker said:

Nasqueron said:

eskbanker said:

Nasqueron said:

Any debts would be statute barred if they were not acknowledged (such as paying towards them or writing to say you accept them) after 6 years so if it was dormant 14 years ago and not used since, chances are that they will have closed it and either written off any debt or held any balance in their internal processes.

Your choice to leave it or if you are certain nothing has been paid or put in writing in the last 6 years, send them a request to hunt it

The account had £600 in it 14 years ago, and OP believes that it may have been subject to a £5 monthly fee, so it would have taken ten years to deplete the balance at that rate, and OP would only actually owe a (net) debt to the bank within the last four years....

 hence stating facts not speculation

Both posts stated outcomes predicated on assumptions?

6 year rule on debt is fact

A dormant account will either be closed and any debt written off (due to 6 year rule) or funds held internally - fact

It takes ten years to burn through £600 at £5 per month (with no other activity) - fact!

The point is that we don't know if any or all of the above is actually relevant to OP's situation, hence assumptions being made in each case, i.e. we don't know if the account is dormant, or if any debt has arisen, etc....

x44

For a real example.....

I have a letter about an account of a company I used to help out with from HSBC where one of their accounts was listed as "inactive" but not dormant and henceforth the monthly charge was to be waived.

It stated that if a transaction was made on the account then its status would change from inactive to used and the monthly charges would return.... I recall the length of time before it was declared inactive was something like a year.

This is different from being officially dormant where usually full ID is required to be provided to re-activate it. or in some cases for very long dormancy on a Charity I also helped with it was necessary to open a new account and transfer the monies over as the old account was on old systems could not be made Un-dormant.

boingy

Benjamin4 said:

What will Lloyds have done with this account? 

The only way you are going to find out is to ask them.