LTSB and defaults

[cymruambyth]

I have poted this on http://www.consumeractiongroup.co.uk/forum/debt-collection-industry/200901-anatomy-default-notice-22.html . The advice I have received may be useful for other posters so I am starting a new thread.

Financial meltdown in 2002/3. LTSB send a DN (which I think complies) which I fail to satisfy. About 12 days after date to satisfy a letter from [problem] which states

'this letter, therefore makes formal demand on you to repay the account balance as quoted above' the full amount oustanding. Plus 'our Client has now cancelled your credit card'.

Account then went to MHA and others before we came to a token repayment plan.

Fast forward to 2010 when LTSB seem to be ending all these arrangements, and reverting to adding interest and repaying vast sums. They have now issued a new DN etc.

[cymruambyth]

This is a reply from silverfox1961

That shouldn't happen.

 

'If you get a default and clear the arrears before the cut off date then it will be as if the default never happened.

If,however, you get a default followed by termination then the original default stands. You cannot be defaulted for the same debt twice.'

[cymruambyth]

And this is a reply from gh2008

 

'IMHO, when you enter a 'repayment plan' there *should* be a new CCA agreement .......

How can the original still be effective when you are not paying the amounts contractually required. (or would they say that the terms was varied - in which case you can reject the new varied term(requiring higher repayments))'

[cymruambyth]

Now to the crux of the matter, do I notify LTSB that they cannot issue a new DN and ????

[Deb T]

At the same time as this and if your credit file shows a new default under the new regime via Lloyds TSB policy I would be inclided to take it up with both the OFT and the Data Commissioner in as much as a default added so long after the account fell into arrears is not the done thing.

 

Having said that, the ICO are good at muddying the waters, this is a letter sent from them to Experian which sort of excuses Experians own ridiculous behaviour when it comes to data processing and time limits

 

http://www.experian.co.uk/assets/responsibilities/brochures/icoLetter.pdf

[cymruambyth]

Thanks Deb, the credit file is a good idea as several defaults should have cleared by now. If I didn't think it possible I would think that LTSB were being petty and vindictive, however as I know that the government supports them (and their actions) I know that this couldn't be the case.

[harrassed senior]

Subbing with interest.

[cymruambyth]

The plot thickens ..............

Going through my paperwork I have found the letter that I received in 2008 on this thread http://www.consumeractiongroup.co.uk/forum/debt-collection-industry/162351-new-tactic-lloyds-tsb.html .

There is no new CCA for the 'aarangement' but a variation in the t&cs. Does page 2 on the photobucket letters give them the right to issue a new DN?

http://i399.photobucket.com/albums/pp74/cymru_1/scan0001-1.gif

http://i399.photobucket.com/albums/pp74/cymru_1/scan0002.gif

I think not BUT they will argue this. Any suggestions before I start writing will be gratefully appreciated.

[Deb T]

It is my understanding that they can issue as many default notices as they like, it's only when they go on from the default and terminate the account by way of a termination letter that no further defaults can be issued.

[cymruambyth]

Thanks for your reply. Does a letter stating that 'our Client has now cancelled your credit card' count as termination or does it specifically have to use thye word termination?

Thank you

 

[Deb T]

Cancelling a credit card does not mean the account has been terminated but simpy that the card facilities and card itself are no longer of any use.

 

The termination letter would be headed ' Termination Letter' or at least it should be....it doesn't seem as if you've gotten that yet?

[cymruambyth]

I will go through everything in the daylight hours tomorrow. I know it spent some time with MHA but don't know if that action would be sufficient for termination.

[cymruambyth]

I've checked all the paperwork and cannot find a termination letter, but I have a letter from LTSB stating that the account is closed and asking for an I&E. I assume this means that account is still ' open for defaults'. If anyone can concur with this I will look at my next plan of action.

[cymruambyth]

Going through all my old paperwork I didn't fin d a letter saying termination letter but [problem] did write and request payment of the full amount.

Fast forward to now and [problem] have sent a new letter, another 'formal demand to repay the account balance'. They have recancelled my card, are notifying all the credit agencies and may take court action.

[rhos123]

Going through all my old paperwork I didn't fin d a letter saying termination letter but [problem] did write and request payment of the full amount.

Fast forward to now and [problem] have sent a new letter, another 'formal demand to repay the account balance'. They have recancelled my card, are notifying all the credit agencies and may take court action.

 

hi, i had quite a few letters from scm requesting full payment, thier last formal letter stated full balance must be paid in 7 days( or its off to court you go) i sent them a letter back plain and simple , I CAN NOT PAY THE FULL BALANCE IN THE NEXT 7 DAYS OR INDEED THE NEXT 777 DAYS SO PLEASE ISSUE COURT ACTION. the only action i have recived is a letter from the lloyds CDR department..