Totally befuddled..

[jax50]

I am confused over a matter where my OC did not send me a DN ....until 2 years after I defaulted

Briefly, I missed payments on a CC and eventually (3months or so) the OC agreed a token payment
would be ok. This went on for a year and half.

After this they got fed up, sent me a DN and passed it on to their in house debt team.

My question is, should the OC have sent a DN when the account went into arrears ?

The reason I am asking is that this all started 6 years ago, so if they had sent a DN straight away,
wouldn't the 6 years nearly be up now and the DN on my CRA file would be due for removal ?

Or have i got this all wrong ?

[labman]

Re: Totally befuddled..

You haven't got it all wrong. Normally they default you after about 90 days. However, some less pleasant creditors will leave it as long as possible to place the default so that your CRF is wrecked for muchlonger than it need be.

[jax50]

Re: Totally befuddled..

Thanks Labman. The thing that's going round in my head though is have I read somewhere that there is a time limit to be complied with in issuing DN's. Once a 'contract' has been breached (by my lack of meeting payment requirements) then doesn't that place the contract in default, or is it the issuing of a DN that places it in default ?

Which is true ?

As it happens, the OC did agree a 'variation' to accept notional payments to assist me. It was only when they concluded that I'd had enough time to return to contractual payments that they got rid, and issued the DN and made the subsequent CRA entry.

In complete contrast, I had another account with another OC at the same time and their stance was that an immediate DN was required to 'enable' them to provide me with terms outside the contract, ie notional payments. In this case the CRA entry expires next month.

[labman]

Re: Totally befuddled..

The creditor cannot take legal action without issuing a DN. This is normally after 3- 6 missed payments, but there is no specific time limit for doing it. The link below may be helpful:

http://www.payplan.com/debt-library/...lt-notices.php

Once a valid DN has been issued, you have failed to comply and the account is formally in default, the ICO expects the default to be recorded on your credit file within 6 months from the date the default occurred.

At least that is my understanding. :beagle:

[jax50]

Re: Totally befuddled..

Thank you. Sometimes when creditors say things like 'we must do xxx " it gives the impression they are acting in response to some law but in reality it is often just their own internal processes and procedures they are talking about. Hence creditor B who said we 'have to default your account to enable us to offer you revised terms....." while creditor A offered revised terms and only defaulted when they passed it on.

thanks for the link too