Lowell, Lloyds and Statue Barred or not Statue Barred that is the question?

[David1981]

Hi all and thanks in advance.

I had 2 accounts with Lloyds back in early 2000 one on my own and one joint(joint account i settled the balance a couple of years ago the individual i have problems with). In late 2007 i lost my job couldn't get another and subsequently ended up losing my house to a Repossession in April 2008. A debt that even to this day i am still paying and still have more than 10k left to pay.

In an attempt to stop bleeding money i stopped using my LLoyds account. The last action i had on my individual account was January 2008 and since then i have paid nothing into the account. I told LLoyds (not in writing that i was having trouble, but they didn't give a monkey's and to be honest at this point neither did i, i was going to lose my house my wife etc so what difference did this make?) A couple of things about this account, first i had no overdraft facility and second it was a fee account £7.95 per month.

Lowell have been chasing me for this for a while so i asked for CCA apparently this is not relevant as current account, i have disputed the account etc and they still not accepting. I have today received statements from Lowell along with a demand for the outstanding balance of circa £1500 for an unarranged overdraft which is made up entirely of charges including bounced Direct Debits, Charges and Account Fees. From April 2008 the only activity on this account is the O/draft interest and the Account Fee No bounced anything DD or otherwise. (I must stress i had no overdraft on the account).

These fees and charges were added to the account for over a year until May 2009 when Lloyds decided to close the account, this is when they defaulted the account with the Credit Ref Agencies. The last action i had on the account was 18 months prior to this in January 2008 but they didn't default the account until May 2009. I thought Statue Barred was from the last acknowledgement of the debt so Jan 08, yet because it's a current account i'm being told it is from the default date. (So when Lloyds decided to close the account)

So am i statue barred from January 08 - 6 year 11 months
Or am i statue barred from May 2009 - 5 Years 6 Months (6 months Remaining)

I'm lost, is this account statue barred? Is it still enforceable? Do i fight this? do i offer to pay it off (not that i'm in a position too)

I was finally getting things back together and i know it's only £1500 but with 10k plus still outstanding on a house i don't even own i beginning to wonder if going bankrupt is the best solution.

Thanks for taking the time to read and reply i really do appreciate it.

[welshspark]

Re: Lowell, Lloyds and Statue Barred or not Statue Barred that is the question?

HI David

Im sure one of the smarter beagles will be along shortly.

i was in a similar situation to yourself, with lloyds, being chased for an overdraft, but ive had no action taken against me as of yet.. and this is over 6 years ago..

The problem is with overdrafts that they are a litle bit more trickier, than say a credit card in determining the cause of action... which relates to when the statute barred clock starts ticking..

you mentioned that it was an unarranged overdraft also, which i believe makes it even more trickier..

because to determine the actual cause of action for overdrafts its.. usually when you get a formal demand calling in the overdraft, however with an unarranged one, soley made up of charges.. im not to sure..

ive read on the forums lots of times about overdrafts and statute barred, ive still yet to read anything where its been defended in court that the cause of action was from when the last time money was paid into an account..

Id say personally, the generally accepted with overdrafts, is that its 6 years from the default date, which you said was may 2009.

I hope this information helps,

im sure that if im wrong about anything...... one of our clever beagle friends will be along shortly