grounds for default removal

[craigers]

I had a credit card with Capital One which defaulted in 2006. It was subsequently sold to Robinson Way. RW registered a default with Equifax. I wrote to RW disputing the account, demanding the removal of the default on the grounds that there is no signed credit agreement, therefore no basis to share data with the CRAs. RW wrote back to say that they had placed the account on hold but would continue to share data with the CRAs in line with the principles of the DPA. Lo and behold, they have just entered a default with CallCredit.

Cap One have failed to provide a list of charges as requested in my SAR (complaint with ICO), but from statements I can see that 43% of the account balance was comprised of unlawful penalty charges. The arrears which led to the default were 85% unlawful penalty charges. I have no idea how much interest was charged on these.

Does anyone know the ICOs stance on such defaults, whereby a large proportion of the balance is unlawful penalty charges? Is there case law where sucha default has been deemed unlawful?

[Kafka]

Re: grounds for default removal

The ICO isn't normally bothered about defaults, as long as the creditor can argue that the details are a true reflection. Courts will normally force default removal if the amount of unlawful charges applied to the account BEFORE the date the default was registered exceeds the amount it was defaulted for. In oher words, if the entire balance owing was charges, not just the arrears.

There are other grounds for removal, such as a flawed Default Notice, but based on charges alone you probably wouldn't win that case.