Hi, I stumbled across this website and I hope you can help me. I'll be so greatful if you can.

I have a defaulted Lloyds account which I last used in 2007, and in oct 2013 it defaulted.

The overdraft had grown from about £250 to over £1600.

I received not a single letter...

.up until 2013 when I got one from a credit collector demanding I repay it.

I have been arguing it is statute barred for some time now, and they have supplied me with statements showing no activity since 2007 and a steadily increasing debt.

It defaulted shortly after maxing out and defaulted. I seem to be going round in circles,

after reading what feels like the whole internet on this topic,

my point is that LLoyds could have taken action after a nominal two years of inactivity, thus starting the SB clock.

Is lloyds had withdrawn the account as per their own T&C then it would have defaulted a long time ago, and been a much smaller debt.

Do you think that is a fair argument?

If it is, clearly it's not in their interest to agree,

so how do I force the issue as I don't want this to go on another 2 years!

Thanks for any help you can offer

Hi Messy1 and Welcome to CAG

How to force the issue...simply ignore the DCA...do not correspond or speak......It is Statute Barred...it should have been terminated and recalled in 2007...if they think different then let them issue a court claim to prove otherwise.

File all correspondence safely away for for future reference ..if needed and forget about it.

Regards

Andy

just remember a DCA is not a bailiff

ignore them....

whos the DCA?

Thanks very much for your replies.

I have a large folder of correspondence now, so all safe.

The problem is that the default sits on my account as 2013 which significantly impacts on my credit rating. It also just feels horrible having this hanging over me even if I am convinced I'm in the right, or at least have been hard done by.

It's now with Robinson way. Has previously been wth moorcroft though

Thanks again

well you ignore the dca.

your target is Lloyds

prove the debt default should have been registered earlier

and then write to Lloyds and demans its moved to the correct date.

as for statute barring

that's nothing to do with a defaulted date

2 totally separate things.

But the problem being the ICO will usually accept the creditors data and not question why it was defaulted 6 years later...it could be argued that you enjoyed 6 years previous without detrimental data on your CRAs.

I personally would sit it out until it falls off on its 6th anniversary...and in the meantime dont humour Robbers by responding

Thanks.

I get how ignoring could work for me, but if I can, I'd prefer to close this off. It's not about getting away with it, I could even accept a fair settlement - pay what I might have owed if lloyds had taken preventative measures early on and then warned me about them. But 6 years of interest and then slapping a default notice on my credit reference is a kick in the teeth.

So far we've just swapped repeated letters, I tell them it's statute barred, they reply saying it isn't. Nothing really changes. I asked them for statements and letters etc, 4 months later they send me some statements that didn't even go back to the last activity.

I feel like I should try two things,

1. Complain that Lloyds didn't follow their own T&cs, nor follow the lending guide or the banking code sourcebook and take preventative measures to stop my financial situation deteriorating. Therefore if they had, my situation would be far better now (smaller debt and earlier default date)

2. Complain that I didn't receive any letters at all. No statements, no letters of concern for my financial wellbeing, no warnings of default. Nothing until after the account had defaulted and collection agencies immediately wrote to me demanding the money.

3. Argue that the statute barred limitation starts at the earliest point a bank could have taken action (step change website) and as the T&Cs (and FCA guidance) says accounts should be monitored, and facilities withdrawn if there is cause for concern, then LLoyds could have taken action two years (at the latest) after noticing there is an issue and then trying all reasonable means to help me (fairly).

Can I complain without admitting to the debt? Do you think they are reasonable points?

Your help is greatly appreciated.

I think your point 1 is the most promising course of action but this must be done with the correct bodies/OC...its pointless telling a DCA as they either dont understand or not interested apart form getting your money.

Establish if the debt is still with LLoyds or whether its been assigned/sold...if so and it has been assigned....then I would revert you back to the initial advice already given as any complaints will be pointless.

Andy

Thanks for that. I am pretty sure the debt has now been sold/assigned, but I will check.

I will write back to them on Monday stating that I don't agree with the date they have declared as the start point for limitation because it is not the earliest point that Lloyds could have started action, and told them I think the date is therefore two years (a nominal but I think fair period for a dormant overdraft) after the last activity on the account. I doubt they'll write back and agree, but we'll see.

Depending on what they come back with, I'll write a letter of complaint anyway, pretty sure I'm going to have to send it as you say. Do I write to Lloyds? or have they washed their hands of this? Pretty sure I read somewhere that they retain an obligation to ensure DCA's follow the same rules, but can't remember where. I'll have to re-read the lending code/sourcebook.

Thanks very much

they don't choose the start point nor do you for statute barring.

you are linking the two things of default date and statute barring - they are not linked!

on a debt in E&W even if it is statute barred

the owner or their agents can still ask for payment as long as they don't threaten court

you can ask them to go away

so what is your real issue here

its on your credit file and harming you and you want it gone?

you are not alone by the way

Lloyds sold off 1000's of old dormant bank accounts recently to hoist

and they sendout threat-o-grams to catch mugs..

you should have kept quiet.

That's the problem, as neither me nor LLoyds/DCA decide the start of statute barred, I might just have to hope they don't make me argue it officially anytime between now and 6 years from default date. That's issue 1.

The other issue is that it's on my credit file as defaulting in 2013.....clearly that's bad for me financially, and if I could get the default date adjusted (not sure how feasible this is) to reflect how it should of looked if the bank and performed its duties correctly, then it's better financially, I can remove the default notice on my file earlier, but also better because statued barred question gets formally answered sooner.

On the rare occasions that I ring them, it does seem that they don't have much of an argument,they can next justify anything.

no missing the point again re: your point 1 it is nothing to do with running from the default date

they know that

but you've entered into pointless letter tennis

so they think one more threat-o-gram will make you crumble..

the idea that sb runs from default date has been won against numerous dca's here already in court.

have you actually ever taken this up with LLoyds?

the ICO guidelines at that time [2007/2008] clearly stated that a debt must be defaulted within 3-6mts.

it may well be worthy to write a pleading letter to Lloyds asking for the default to be correctly registered as this is very unfair for it to be recorded so late after last pay/use by you

and that it is causing you severe financial troubles by obstructing the arrangement of new credit/mortgage or whatever.

see if they respond

if they do or they refuse

then we can start quoting ICO guidelines that they should have abided by.

dx

I know that the the default date is nothing to do with the clock starting for statue barred

- and I'll stick to that fact until the day a court tells me otherwise.

No crumbling here.

I have written a letter back to the DCA explaining numerous reasons why the statute barred date is far earlier than they are claiming.

Probably letter tennis but if there's a chance I can close this issue then I'd like to try.

I'll take your advice to write to Lloyds to see what they say with regards to correcting how the account was handled, thanks for that.

To clarify though,

the account did default 3-6 months after the overdraft went over the agreed maximum.

My problem with it is that it took 6 years for the interest to build up in the overdraft, gradually increasing (with no other activity) until it went over the maximum.

I think Lloyds should have withdrawn the account/overdraft years earlier, warning me of the problems, and then it would either of been paid, or defaulted and subjected to a DCA or CCJ etc.

But I'm not sure if they were legally obliged to do this,

morally obliged to do this,

or if it's just assumed they would/might

- which effects my chance to getting my credit file changed.

Either way though, they could of taken action much earlier than they did.

Thanks again for all your advice,

it really helps just get other people's opinions,

and to make sure i'm not head in the clouds!

When you say that the account was defaulted 3-6 months after the overdraft went over the agreed maximum..did you not receive a Default Notice served under sections 87(1) ?

Then at the end of the allotted time stated within the default notice did you receive a Notice served under sections 76(1) and 98 (1) of the CCA1974 (the Recall Termination Notice ) ?

Regards

Andy

Thanks Andy, no I didn't receive any letters at all.

The first letter I have is the one from the DCA claiming the money after it had defaulted.

I think this is probably another angle I should look at,

though I haven't read anything on what they should have provided.

If it was served, then I don't know when.

The section you refer to, are they in the Banking Conduct Sourcebook?

No the Credit Consumer Act 1974

Thanks for that, that, i'll get a copy and read through that. Trying hard to improve my understanding of all of this.

ah that's a lot better explanation, now we understand.

yes I agree

its a bit crass to simply let the balance run up to the OD limit then default you.

very unusual for a bank to leave such a high OD limit sitting there not being used by the customer..for soo many years

it's even smacks of them doing it on purpose [no surely not - a bank wouldn't do that would they........]

sorry, been reading and writing letters so much on this now its all starting to blend into one so glad it's clearer now

banks doing it on purpose...that was my initial thought, almost as though they saw it as easy money.

So with that in mind, do you still think I could argue the earliest the bank could have taken action (as per step change website) is about 2 years after the last activity on the account? Because:

1. Lloyds T&Cs indicated annual review of circumstances and their right to review overdraft/account facility if they deem it appropriate.

2. Lending Code talks about preventing a customer's financial welfare deteriorating, monitoring for financial difficulty and taking preventative action.

i.e. They could of taken action, but chose not to...

twas a bit tongue in cheek comment really.

can I just clarify somethings....

1.you've never gone directly to Lloyds with this..

2.or were you already in letter tennis with Moorcroft about who were chasing for Lloyds

[as they don't buy debts themselves] before HPH2/hoist/robbersway bought it?

3.and to your knowledge rway have not contacted Lloyds either?

and to your knowledge neither have

If the debt has been assigned ....I personally would allow it to run another 2 years until it falls from your credit reports..unless in the meantime some DCA issues a court claim...then you can challenge it in full.

Apart from the default marker being placed late the debt is not causing you any problem

In the meantime dont get into any further letter tennis and be careful not to acknowledge the debt.

Andy

Lol, I try to re-read my messages to make sure they make sense to more than just me, doesn't always work though.

Answers though:

I have never gone directly to Lloyds

I have have played tennis with Moorcroft when it first started, and now it's with Robinson way.

I don't think they have gone to Lloyds themselves with any of this, except maybe to get bank statements. I just waited for 4 months after the last letter I sent them about the debt being SB. They told me they were getting info from the bank and they had to wait for Lloyds to respond. But in the end all I got were a few statements and nothing else so I'm pretty suspicious of why it took 4 months to print a few pages!

because Lloyds have obviously washed their hands of it.

as it appears that atleast moorcrof WILL have told Lloyds of your correspondence

as they were their direct client....

I don't think you've anything to gain by now ging to Lloyds

you've lived with the issue for years now

another couple ish wont hurt till it drops from your file on the defaults 6th birthday.

think andy's idea is now looking the best ...

Thanks for your advice. The problem is the default on my credit file does hurt me, more than having partially or fully settled there instead - it means I'll struggle to get a mortgage or any other credit.

I'm being extremely careful not to acknowledge any debt. I start and end any letter with a statement of how its statute barred and I don't recognise this debt.

Will have to think and decide if it's worth sending the letter I have now drafted.

Thanks again for your advice, its been helpful just talking about it