Incorrect Default

donny101 · 16 June 2018 at 12:55PM

Hi,

First time posting on here and I'd be very grateful for some advice. In 2012 I was struggling with debt and approached Step Change, who arranged re-payments with my debtors.

In 2013 I was defaulted by Lloyds for not keeping up with payments. There's a longer story here, but the short version is that Step Change and Lloyds had a communication breakdown for a few months. I was always very angry with this as I believed it was completely avoidable (and did everything I could at the time to resolve it).

I have recently been told by SC that their advice and methods at the time most likely led to the default. So I contacted Lloyds to appeal the default.

To my surprise, my appeal was immediately upheld. However, it wasn't entirely based on the SC communication fail. Lloyds have told me that they should have closed my account in 2012 when it was clear I needed long term financial assistance. They also noted that I queried the default in 2014, and was given incorrect information regarding why I had been 'incorrectly' defaulted.

As compensation for my inconvenience they have awarded me the princely sum of £300. For the past 5 years I have been unable to get any kind of personal loan, phone contract, credit on purchases and more importantly - a mortgage. Even when I was offered a considerable deposit by a family member. That ship has now well and truly sailed and I find myself in renters hell. It has also effected my 3 year old business, which despite being successful - I have been unable to grow as I'd like, entirely due to this default.

It has been a cause of great stress and even depression, which is why I feel like £300 for 5 years of suffering is a bit of a slap in the face.

Included with the letter from Lloyds was information about appealing to the financial ombudsman. This is where I need advice. It seems to me that I wouldn't be 'appealing' anything, since I am more than happy with the default being removed. What I would like to look into is some sort of proper compensation. Is this something I can do through the FO?

Also, would cashing the cheque for £300 weaken my case?

Thank you in advance for any answers!

sourcrates · 16 June 2018 at 2:15PM

You have nothing to lose by taking your complaint to the financial ombudsman, however you may want to read up on other similar cases, and see how they have been dealt with first, these can be found on the FOS website.

http://www.financial-ombudsman.org.uk/default.htm

glentoran99 · 16 June 2018 at 4:35PM

Are you entirely sure you want the default removed? Are they removing all trace of the account or are the replacing it with arrangement to pay? I only ask because one of mine offered to do the ame

if the latter your ideal solutions is for them to backdate to 2012.

donny101 · 17 June 2018 at 11:13AM

Removing the account completely from my credit report.

System · 17 June 2018 at 12:21PM

Not going to happen, at best it could be changed to arrangement to pay if they agreed to one but they will not remove the account or any entry unless it was factually incorrect. You had an agreement with it, you reneged on that agreement by not paying what was due on the credit agreement you signed therefore you defaulted. The fact you enter a DMP does not alter that fact.

glentoran99 · 17 June 2018 at 12:22PM

Tarambor wrote: »

Not going to happen, at best it could be changed to arrangement to pay if they agreed to one but they will not remove the account or any entry unless it was factually incorrect. You had an agreement with it, you reneged on that agreement by not paying what was due on the credit agreement you signed therefore you defaulted. The fact you enter a DMP does not alter that fact.

They have agreed to do so though, which could be just backdating it to 2012 which has the same effect

sourcrates · 17 June 2018 at 1:18PM

Occasionally creditors, and payday loan creditors in particular, do remove the entire entry from your credit file.

Not yet seen a mainstream bank do that, but certainly the likes of Sunny, Wonga, and others have done so.

glentoran99 · 18 June 2018 at 10:00AM

From my understanding they can do what they want, What they report must be accurate but no obligation to report

donny101 · 21 June 2018 at 1:34PM

To be clear, the bank have completely removed the account from my report and therefore the default.

I wasn't asking whether they would remove it. It's whether I'm entitled to more than £300 compensation for a default I had place on my account incorrectly for 5 years.

glentoran99 · 21 June 2018 at 1:39PM

Genuinely don't think so, as you did break your contract with them and weren't paying them the full amount

Incorrect Default

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