No Default notice received.

[rogerdygas]

I have written a letter to my lender who has filed a default on my credit file. I never recall receiving a default notice so therefor I wasnt given a chance to remedy the issue before a default was registered against me. Below is a copy of the letter they sent back. Please could somebody advise on what to do next? Thank you so much

Thank you for your recent letter requesting copy documents for your
account.

You requested copies of the executed credit agreement and a statement of
your account under section 78 of the Consumer Credit Act 1974.

As you may be aware, your account went into default on 4 April 2011 for
£948.54. You have since made payments which have brought your balance
to zero and we have recorded a settled default on your credit file.

Where there is no sum which is, or will, or may become payable under the
credit agreement, then the obligation to provide documentation under
section 78 of the Consumer Credit Act 1974 does not apply. Therefore, on
the basis of the above, we have no obligation to provide you with a copy of
the documents that you have requested.

Furthermore, under S78 we are not required to provide a copy of the default
notice and statement of default.

I acknowledge receipt of your £1.00 cheque. As we are not providing the
documents you have requested, this cheque will be safely destroyed and and will
not be cashed.

I trust this will help you with your enquiries. If you need any further
reformation, please contact me again.

I really hope somebody can help on this great forum.

[rogerdygas]

Re: No Default notice received.

I dont know if it helps, on my credit file it shows three late payments then an arrangement to pay (debt management plan) followed by the default once the arrangement was all in place!

[Guest]

Re: No Default notice received.

Unfortunately they are correct in that they do not have send a section 78 copy if the agreement has ended and there is no outstanding balance.

If you want information you wil have to send a subject access request under the data protection act, there is a template letter on here, it will cost you £10, this will compel them to release al data concerning your account.

The should have sent a notice of intention to file a default before placing the default on your credit file. This is distinct from a DN under the consumer credit act and is a requirement of the ICO guidelines and the banking code.

You could argue that since this was not received they should not have recorded the default.

These are the appropriate sections of the code of practice

32 Lenders should tell their customers about filing information with a credit reference agency as part of the account opening procedure, in line with the requirements of the ‘fair processing code’4. This explanation will not normally refer explicitly to defaults and will often be distant from the events which cause them. Therefore we strongly recommend that a notice of the intention to file a default should be served. Many lenders now subscribe to trade association codes of practice which require this. This practice helps the transparency of the credit reference process and may even prompt payment, so avoiding the need to file a default at all.
33 Notices to comply with Sections 13.7 of the Banking Code5 and 7.5 of the Lending Code6 should provide adequate warning. A notice of intention to file a default can be sent with a formal default notice serunder Section 87 of the Consumer Credit Act 1974. Where lenders arnot required to issue these notices, they can send an intention to filedefault through a final demand, letter or relevant account statement, which should make clear not only the intention to file but also the date of the intended default. The date should allow the customer enough time to respond properly. Lenders who have to provide a notice of intention to file a default under a relevant code of practice should be aware that not complying with the code may be taken into account in any assessment of the fairness of their processing.

D

[rogerdygas]

Re: No Default notice received.

Thanks everybody for your help I've sent a SAR off so its just a waiting game now. Ill let you all know how it goes.

[basa48]

Re: No Default notice received.

Thanks everybody for your help I've sent a SAR off so its just a waiting game now. Ill let you all know how it goes.

I wouldn't hold out too much hope you can get this Default removed. It is virtually impossible.

The fact of the matter is you have defaulted. The three missed payments would have been enough to qualify, but then the subsequent reduced payments are in effect a default as well even though the lender agreed.

The recommendations to send a letter advising an intended Default is in a code of practice, not binding (although most lenders do send one). It is entirely possible the lender mentioned issuing the default when making the arrangement for reduced payments.

[labman]

Re: No Default notice received.

I agree entirely with you Basa, but the fact that there was no doubt the OP was in default does not mean the company can bypass the legal procedure for remedying it. Under the CCA they should have a set number of days in which to remedy the situation before they place a default. Removing a default is very difficult at any time. Removing one in these circumstances will be next to impossible I imagine, but there is still a solid argument about due process being followed.

[barclayarua]

Re: No Default notice received.

In terms of due process what is the minimum time between breach and default? I was defaulted 4 years later - no notice, no nadda!

[basa48]

Re: No Default notice received.

In terms of due process what is the minimum time between breach and default? I was defaulted 4 years later - no notice, no nadda!

Not absolutely sure, but I don't think there is a minimum or maximum time between a breach and a default.

In theory the first missed payment is a default, but in practice most lenders wait for 3 missed payments before issuing a default. I'm not even sure if the statute of limitations would affect the issue of a default notice.

A default notice has to allow you 14 days from receipt in which to make the payment to clear the missed payment(s).

In theory, if you never received the Default Notice (and obviously could not remedy it in the alloted time) then the creditor shouldn't record the default with the CRAs. However it is something of an uphill struggle to prove you never received the DN. The creditor would swear blind they sent it - "we always send one your honour".

[morrisld]

Re: No Default notice received.

Sorry to hijack this post but I cant see for the life of me how I start a new thread!!???! Does anyone know where we can identify who these lenders are who are not required to issue these notices as highlighted below.

I received after much back and forth a copy of a letter from Next today as I'm disputing that I never received a default notice that they placed on my file back in 2010. To me it looked like a bog standard you're in arrears letter rather than an official 'default notice' Is this acceptable then? or should they be referring to the CCA? I'm at a loss!!
D[/QUOTE]

32 Lenders should tell their customers about filing information with a credit reference agency as part of the account opening procedure, in line with the requirements of the ‘fair processing code’4. This explanation will not normally refer explicitly to defaults and will often be distant from the events which cause them. Therefore we strongly recommend that a notice of the intention to file a default should be served. Many lenders now subscribe to trade association codes of practice which require this. This practice helps the transparency of the credit reference process and may even prompt payment, so avoiding the need to file a default at all.
33 Notices to comply with Sections 13.7 of the Banking Code5 and 7.5 of the Lending Code6 should provide adequate warning. A notice of intention to file a default can be sent with a formal default notice serunder Section 87 of the Consumer Credit Act 1974. Where lenders arnot required to issue these notices, they can send an intention to filedefault through a final demand, letter or relevant account statement, which should make clear not only the intention to file but also the date of the intended default. The date should allow the customer enough time to respond properly. Lenders who have to provide a notice of intention to file a default under a relevant code of practice should be aware that not complying with the code may be taken into account in any assessment of the fairness of their processing.

[charitynjw]

Re: No Default notice received.

For new thread

http://www.legalbeagles.info/forums/...rence-Agencies

About a quarter of the page down - left-hand side - blue "button"