default notice removal

[jay-will]

hey guys,

I'm sorry if there is a thread about it already..

I need some help regarding a default notice. Long story short - I had an hsbc overdraft in 2008 - I went over the limit, I moved out of a property and I didn't pay them. I know I was silly, I was a student, I was new to the country and didn't think they will chase me for the debt in the future (again, I know.. ) Anyway. Few months ago, I have received a letter from a debt collection agency MKDP LPP chasing me for outstanding balance of £492. I rang them up and set up a payment plan. I'm more than happy to pay this back to them - I know I owed them money and I have no issue with paying it back. I have attempted to apply for a mortgage and got turned down. I have checked my credit file and there is a default notice issued from HSBC in July 2012. I know default notice stays on credit file for 6 years from a day of issue, so that means I have no chance of getting a mortgage for another 4 years.. I rang up MKDPP asking if there is a chance of getting this default notice removed if I settled the debt in full. They said default notice has not been place by them, it has been placed by a debt collection company that dealt with this debt back in 2012. Attempted to speak to HSBC - they don't want to know anything, they keep referring me back to MKDP as they own the debt.

Do I have any chance of getting this removed? I read quite a few posts regarding this, but don't seem to find a right answer. Do I have a leg to stand on if I take this further? (i.e - FOS..) As far as I'm aware they have to issue you a notice first and give you 28 days to pay it. I have had no contact from HSBC or any DCA from about 2009-2010. Default notice has been place on my credit file in 2012. I always thought they usually issue you a default notice if you miss 3-6 payments. I haven't paid this debt since 2009-2010 and only started paying this back now. It seems quite strange that they haven't chased me until now - I was registed on electoral roll, so they had a way to find me. I know its my responsibility to inform them of address change, but I was a student at the time and moved from one property to another every few months. Its also a bit strange that they haven't issued a default notice in 2009-2010 when i stopped paying it and only issued it 2 years ago.

Any help would be appreciated!

Thanks.

[Kafka]

Re: default notice removal

Hello and welcome

Regarding the responsibility, when an account is formally assigned (sold) to a new owner, that new owner becomes responsible for all the rights and duties associated. That means that they can chase the debt, but they also become the Data Controller who is responsible for reporting on the account to the credit reference agencies. They can't pass the buck on this because they are reporting that information.

Even if you paid it off, they would only mark it as settled, not remove it. At least with mortgage applications you usually get a person assessing the report rather than a computer, but it will still show as a 'live' default until it falls off.

You re correct about the requirement to follow correct default procedures before registering a default and that includes sending a valid Default Notice. They should also have filed any default within some months of your last payment not years later. If it was me I would write (never ring these people) to MKDP telling them that they are reporting inaccurate data and you require it removing. If they disagree you require proof that the account was defaulted correctly, with proof of a valid Default Notice having been supplied, as you received nothing. You also contest the date the default was registered as you had no contact since 2009.

[jay-will]

Re: default notice removal

Great, thanks for you reply!

When I rang MKDP (before I opened this thread) they said they took over this debt in August last year. Default notice has been issued prior to that. As mentioned, I attempted to contact HSBC, but no luck. On my credit report, it does say MKDP - default notice, but I assume its because they dealing with it now. How do I find out who dealt with this debt prior to MKDP? Also, who do you think I should write a letter to? Should it go to HSBC complaints department? I have not got any paperwork from them, however, I assume if I request a statement of my account, it will show the last payment being made in 2009.

[mark andrew]

Re: default notice removal

Hi jay-will
If its got mkdp details on your credit file they are the owners of the debt by the sounds of it so i would write to them

[Kafka]

Re: default notice removal

You have a right under the Data Protection Act to send a Subject Access Request to any firm to obtain a copy of all the personal data they hold on you, for a fee of £10. If you send that to HSBC with your details then they are obliged to supply everything they have.

That should reveal the default process and the timescales, and give you better ammo to fight this. They have 40 days to respond though. If you get that then we can look at how you challenge MKDP. Typically firms refuse to remove defaults so you will probably have to take formal action against them if we can see that you have a good case, Certainly the default in 2012 looks to be at least 2 years later than it should have been.

http://www.legalbeagles.info/forums/...otection-Act-)

[jay-will]

Re: default notice removal

Ok, great - I will do that now. This is whatt I came up with:

I am writing to request a copy of all information over the last seven years associated with me. The information required should include, but not be limited to:

• any communication sent by you to me,
• any communication sent by you to a third party,
• any communication sent by a third party to you.

Do you think I should write this in more detail - i.e provide a proof of bank statements and default notice?

[Kafka]

Re: default notice removal

SAR request is for all personal data held. They are only required to hold this for the last 6 years, but in practice banks will normally have it back further.

I would ask for all data, but you particularly want full details of data relating to the following:

The default process
The assignment process
The statements of account
Details of charges added to the account
Correspondence with yourself

Third party comms will be regarded as commercial data and not your personal data.

Basically I suspect that when you left the account HSBC effectively defaulted the account, and we need to see whether they did indeed comply with the requirements through issuing a valid Default Notice. It looks like they sat on it and although having defaulted it they didn't register the default with the CRAs. As a result, a debt collector bought it and registered the default long after the account actually defaulted.

Even if there isn't enough to challenge the default, you should be able to establish that the date should be some years earlier. While that wouldn't remove it, it will mean that the 6 years for it to drop off is a lot nearer.

[jay-will]

Re: default notice removal

Okay - perfect. Will get it sent to them first thing tomorrow morning. I am more than happy to have a default notice on my credit file, because I know its my own fault for not paying it - however, if they can push it back - it would be excellent. It would mean I would only have it for another year or two for it to drop off rather than 4 years!

I will let you know once I receive a response from them. Thank you very much for all your help!

[nemesis45]

Re: default notice removal

The Information Commissioners Office Guidance on Defaults: A default should " usually" be placed within 6 months of the cause of action.
There are some instances where this can be done later e.g. if a " payment arrangement" is agreed" and later fails it default can be placed at this point.

The SAR is important here especially as MKDP are involved as that company has been known in the recent past to claim that it can
"default" a debt when it purchase a debt which of course it cannot.