Default on Credit File from Voluntary Termination of Car

[kreig]

Hi Guys,

I got some advise on here previous RE VTing my BMW a couple of years ago due to it being negative equity and only have a few month's left on the car.

Cut a long story short, they chased me for pro rated excess milage around £250 which I argued but they continued to chase. I paid half of it but never paid the other half (after reading some advise on here) and they stop chasing me for it.

Anyway jump forward to today and theres a default on my credit report which I would like to get rid of as it will have an impact on my mortgage etc. Can they mark it as a default? Because the excess mileage is surely a separate agreement to the one I signed and paid on time each month?

Any advise will be much appreciated.

[R0b]

Re: Default on Credit File from Voluntary Termination of Car

Did you receive any default notice from BMW at the time?

My view is that no they shouldn't have applied a default. As you say, the excess mileage charges are entirely independent of the credit that was loaned to you under the agreement, they are made up entirely of charges following termination of the agreement and the ICO in their guidance note has already confirmed that lenders should not be issuing defaults in this instance, unless the default balance relates to the credit borrowed. See pages 6-7 of the link below to understand more about it.

http://www.scoronline.co.uk/sites/de...ment_final.pdf

You might also want to read the previous guidance note from the ICO in particular about unresolved disputes, see paragraphs 42-45 on pages 16 to 17.

http://www.experian.co.uk/www/pages/...n_defaults.pdf

[kreig]

Re: Default on Credit File from Voluntary Termination of Car

I dont remember recieving a specific default notice, but did recieve a number of letters chasing the debt.

Will read up on the bits you have sent over so thankyou for that, would you advise quoting that material in a letter to them to get the default removed?

[nemesis45]

Re: Default on Credit File from Voluntary Termination of Car

I dont remember recieving a specific default notice, but did recieve a number of letters chasing the debt.

Will read up on the bits you have sent over so thankyou for that, would you advise quoting that material in a letter to them to get the default removed?

The bit you are looking for is if the balance on an account is solely made up of fees /charges a default is not to be applied, yes quote the wording and the document from which it cam.#

ne.

- - - Updated - - -

I dont remember recieving a specific default notice, but did recieve a number of letters chasing the debt.

Will read up on the bits you have sent over so thankyou for that, would you advise quoting that material in a letter to them to get the default removed?

The bit you are looking for is if the balance on an account is solely made up of fees /charges a default is not to be applied, yes quote the wording and the document from which it cam.#

ne.

[kreig]

Re: Default on Credit File from Voluntary Termination of Car

Thanks Rob, I had found that part which I presumed you were referring to.

Its absolutely clear isn't it, amazing they try this.

I've drafted the following letter to send, If you have 2 seconds would very much appreciate your input (Personal details, reference number etc left off)

Dear Sir / Madam,During a recent search I noticed a default on my credit report referring to the above credit agreement. I believe this to be an error and am writing to request that this default be removed ASAP.
The charges it states that are overdue I believe relate to “Excess Milage Charges” that were invoiced to me following the Voluntary Termination of the car in March 2016. I do not believe these charges to be owed for the following reasons.
On page 7 of the Principles for the Reporting of Arrears, Arrangements and Defaults at Credit Reference Agencies from the Information Commissioner's Office (https://ico.org.uk/for-organisations/finance/) states that:
“A default should not be filed:

• If you make a payment, in time, that fully meets the terms set out in the default notice
  
• If jointly with the lender an agreement is reached for an arrangement and you keep to the terms of that arrangement
  
• If the amount outstanding is solely made up of fees or charges
  
• If a lender is given evidence that a customer is deceased (for example a verifiable death certificate, probate or letter of administration)

Since all regular payments for this account were made on time, this default is separate charges relating to money allegedly owed for excess mileage and thus a default should not be filed.
Secondarily page 6 of the same document states:
The lender must have notified you of their intention to register a default against you at least 28 days before doing so, in order to give you time to make an acceptable payment or reach an agreement with them on an arrangement.
No such notification was received, which is a secondary reason for why I believe this default is not valid and thus should be removed.
Please remove the default from my credit file ASAP, should this not be done I will be contacting the Financial Ombudsman with regards to this matter.

[kreig]

Re: Default on Credit File from Voluntary Termination of Car

The bit you are looking for is if the balance on an account is solely made up of fees /charges a default is not to be applied, yes quote the wording and the document from which it cam.#

ne.

- - - Updated - - -



The bit you are looking for is if the balance on an account is solely made up of fees /charges a default is not to be applied, yes quote the wording and the document from which it cam.#

ne.

Hi Nemesis,

Quoted the above and received a response today, basically ignoring my point and stating their belief that the charges are fair and this is the final letter on the matter with the financial ombudsman details attached along with the letter.

Anyone got any experience referring to the financial ombudsman? Am I likely to get a positive result?

Craig

[Debt Camel]

Re: Default on Credit File from Voluntary Termination of Car

In my experience, the results from the financial ombudsman on defaults in general tend to be a bit random. But it doesn't cost anything, you have nothing to lose and a very clear statement to quote to support your position, so why not try? And take it to the Ombudsman level if the adjudicator (the first stage of a FOS complaint) rejects your complaint.

[kreig]

Re: Default on Credit File from Voluntary Termination of Car

Thanks will make the call now.

Am I right in understanding that there will be a charge to BMW for me making this complaint? Seems a strange business decision to allow this to be referred given the small amount this is over.

[Debt Camel]

Re: Default on Credit File from Voluntary Termination of Car

I suggest sending your complaint to the Ombudsman using their online complaints form: https://help.financial-ombudsman.org.uk/help. This walks you through the in fo you need to provide, you can attach the reply from the firm etc.

Yes firms are charged for this. But most people don't take cases to the Ombudsman, so overall the firms probably gain because more people drop out with no offer of settlement, outweighing the fees they have to pay for those that do complain.

[kreig]

Re: Default on Credit File from Voluntary Termination of Car

I suggest sending your complaint to the Ombudsman using their online complaints form: https://help.financial-ombudsman.org.uk/help. This walks you through the in fo you need to provide, you can attach the reply from the firm etc.

Yes firms are charged for this. But most people don't take cases to the Ombudsman, so overall the firms probably gain because more people drop out with no offer of settlement, outweighing the fees they have to pay for those that do complain.

All done, via the phone.

Will update thread with outcome in case it might help others.

[beck708]

Hi Krieg, I wondered if you could share an update on the above? We are trying to get a mortgage ad struggling due to VTing 8 years ago and although we set up a payment plan of £35 a month (never missed a payment) its killing us trying to get a mortgage. Id be REALLY grateful for any advise! thankyou!!!

[Amethyst]

If you VT'd 8 years ago then any default marker should have fallen off your credit file by now.

Do you have a screenshot of what's showing on the file ?