Eon reneging on promise of "default" removal

[VictorMeldrew69]

In April this year I decided to change my utilities supplier. I cancelled my direct debit with Eon and signed up with Spark Energy. My final bill (received in early May) was just shy of £1000.00. I was out of the country for most of June and when I returned (4th July) I opened a letter dated 20th June from Eon threatening court action unless I paid the outstanding balance in full or agreed a satisfactory payment plan. I immediately emailed the person who had sent me the letter and within a few days agreed to pay £250.00 per month. I set up a standing order and the first payment left my account 29th July.

Later in July, I took the decision to purchase a new car and submitted my finance application to Mercedes. I was amazed when it was declined. I have NEVER been refused before and I always check my credit file to ensure it is up do date with no "skeletons". Following this bombshell I downloaded my latest credit report and found that in June Eon had registered a default against me for £1030.00. I immediately contacted the person with whom I had exchanged emails regarding the payment plan. Initially they were adamant that I had breached my contract and that I should read the T&Cs on their website. They also told me that they had written to me on the 31st May informing me that they were giving me 28 days to settle the account or defaulting me. I NEVER received this letter and have only subsequently received a copy of it by email from them.

Finally after much emailing and trying to get them to see sense, they agreed that if I pay the full outstanding balance that day (last Friday 23rd August) they would remove the default from the CRAs. Below is a copy of their email agreeing to remove the default:-

The Notice of Default letter sent was not sent by me or the legal team, it was sent by it was sent by E.ON credit operations who were chasing a debt on your account. I do not work in that area but it is my understanding that as this remained unpaid after the stated period the default was issued.

I have managed to contact a colleague who advised she can arrange to have this removed if it is PIF today.

I have asked the question how long will it take to remove and have been told within 2 weeks.

I await your reply

I immediately paid them (by card over the phone) the £792.60 outstanding. The guy who took my payment promised to send me the payment confirmation by email. This didn't arrive Friday evening, however, I wasn't too concerned as the payment was made at about 5pm and it was a bank holiday weekend. However, I emailed them again this morning (27th August) and just asked for confirmation of the transaction and a timescale as to how long the default removal would take. I got the following response:-

Hi xxxx.

I can confirm that you did pay the balance of £792.60 on account number xxxxxxxxxxxx, the payment Authorisation Code was xxxxxx and the account now has zero balance.

I have been in touch with my colleague this morning regarding the removal of the default notice.
Unfortunately she is now telling me they cannot remove this as E.ON were not at fault when it was applied. It seems the account has had an outstanding balance since March 2013 when the Direct Debit on the account was cancelled.

I apologise that I was incorrectly advised and informed you that the Default could be removed after your offer to pay the balance in full. I have discussed this issue this morning with my colleague to try and get the decision overturned but have been unsuccessful.

I have spoken with my Manager who has also looked into the account, and again feels the application of the default was correct and that while we will not remove this as there was a debt on the account it will be marked as satisfied as the balance has been paid.

Whilst I know you will not be happy about this, I would again draw your attention to the E.ON web site and to read the complaint handling process (CHP). Should you wish to take this to the ombudsman as mentioned in previous emails, you will need to have any dispute fully investigated by the complaints team as the Ombudsman will not handle any issue which has not been looked into first.

I again apologise for not being able to complete the removal of the Default notice.

As anyone can imagine I was furious. Obviously I emailed them back immediately but was told that they were sorry for the misinformation but ultimately the default would stand.

Amazingly, they then suggested that they would give me the £792.60 and go back to the original monthly repayment arrangement.

This finally leads me to believe that they have deliberately decided to punish me not for any late payment but for swapping suppliers.

Is there anyone out there who can suggest what my course of action can be? I cannot afford for my credit file to be violated in this manner. I am extremely careful about ensuring all my accounts are kept up to date. In fact its only in the last few days that I was aware that utility companies now share data with CRAs.

Additionally having looked closer at my Equifax file, they haven't shared a lot of the previous payment history. They are showing 6 previous months as "unreported" and May 2013 as being up to date, then as mentioned DEFAULT in June.

Im quite sure they just don't know what they are doing?

An absolute disgrace.

Thanks in advance

[charitynjw]

Re: Eon reneging on promise of "default" removal

Hi VictorMeldrew69,

How did you refrain from saying "I don't be-leeeeeeve it!"

Too late now (or maybe not, if you can get the refund & start again), but I would always suggest that a F&F is done through a third party.

That way, a separate contract is formed, & if the deal is conditional on them removing the offending black mark, subsequently not doing so would be a breach.
Of course, you would need to evidence an actual, not speculative, loss.

[wales01man]

Re: Eon reneging on promise of "default" removal

You say they sent letter on 31st May then say you were out of country for most of june? and you say you did not receive this letter well you as you said were away as they sent you a copy this presumes the original was sent,as for removing the default that from reading previous posts on here is no easy but worth trying if you defaulted they are probably correct in placing a default on your file their defence about not removing it is I expect the person who told you they would had no authority to do it

[VictorMeldrew69]

Re: Eon reneging on promise of "default" removal

I can ONLY assume that the 31st of May letter was sent. It certainly never turned up at my home. Consequently the first time I knew of any threat of legal action was a letter sent to me on the 20th June, which as I pointed out, I replied to immediately on my return to the UK on the 4th July. It was at this time that I entered into the agreement to pay £250.00 per month (only because they suggested that a payment arrangement was acceptable). However they had already (unbeknownst to me) defaulted me. Remember that this DEFAULT was registered on 30th June for an invoice received 2nd May (dated 28th April).

What is the legal definition of DEFAULT! Id be interested to find out if they have defaulted any existing customers who have not paid their bills in full within this period of time.

Sadly, it seems their is no actual legal definition of what period constitutes a default period. However, the guidelines suggest 3-6 months. Clearly in this case this guidance has not been followed.

[charitynjw]

Re: Eon reneging on promise of "default" removal

What is the legal definition of DEFAULT! Id be interested to find out if they have defaulted any existing customers who have not paid their bills in full within this period of time.

Sadly, it seems their is no actual legal definition of what period constitutes a default period. However, the guidelines suggest 3-6 months. Clearly in this case this guidance has not been followed.

That is for a default notice as per the CCA 1974.

The notification on your credit file is a different animal, & can be applied pretty much as soon as you miss a scheduled payment.

[VictorMeldrew69]

Re: Eon reneging on promise of "default" removal

Still as equally damaging to ones credit file however?

[VictorMeldrew69]

Re: Eon reneging on promise of "default" removal

Hi,

For clarification, when you say "the notification on your credit file is a different animal". What exactly do you mean by this?

Is it as damaging as any other default, as far as a lender looking at the account is concerned, or is it a "watered" down version? I suspect its the former.

Thanks in advance

[Guest]

Re: Eon reneging on promise of "default" removal

According to ICO guidance a "default" occurs when the relationship between the debtor and the creditor has broken down.

There are guidelines which state at which point this should occur, unfortunately that is all they are it is pretty much up-to the creditor to decide when that relationship has reached the point of no return.

Conversely there is legislation within the data protection act that states that all information must be recorded accurately, if a default had occurred then it must be recorded, the agent had no right in law promising that the marker could be removed, the creditor did not have the right to do so.

[charitynjw]

Re: Eon reneging on promise of "default" removal

A default, for the purposes of a marker on your credit history, occurs immediately when you miss a payment, & is a record of that fact.

A default for the purposes of the CCA requires a procedure as laid down by that Act, & has to allow the debtor a reasonable time to regularise the account.
Typically, a Default Notice is issued about 3 months or so after the breach.

[Guest]

Re: Eon reneging on promise of "default" removal

Some explanation here

http://www.ico.org.uk/upload/documents/library/data_protection/detailed_specialist_guides/default_tgn_version_v3%20%20doc.pdf

Part 9 definition of default

"The term ‘default’, when recorded on a credit reference file should be
used to refer to a situation when “the lender in a standard business
relationship with the individual decides the relationship has broken
down”"
.

[VictorMeldrew69]

Re: Eon reneging on promise of "default" removal

Thank you for your input.

Do I have any recourse with this company over their reversal of their promise to remove the default.

I am at a loss as to how it could be construed that "the relationship" had broken down when a payment was made in the May and the default notice was applied in the June. The default referred to an invoice dated 29th April and received 3rd May.

I know an awful lot of people who have taken far longer to settle their quarterly bills than I did. It smells to me like they've defaulted me purely because I cancelled my account with them and moved elsewhere.

[Guest]

Re: Eon reneging on promise of "default" removal

Thank you for your input.

Do I have any recourse with this company over their reversal of their promise to remove the default.

I am at a loss as to how it could be construed that "the relationship" had broken down when a payment was made in the May and the default notice was applied in the June. The default referred to an invoice dated 29th April and received 3rd May.

I know an awful lot of people who have taken far longer to settle their quarterly bills than I did. It smells to me like they've defaulted me purely because I cancelled my account with them and moved elsewhere.

Not really, there is no cause for a criminal action, and any successful civil action would just serve to put you back into the position you were in before the promise was made, and I think that they have already offered that.