default notice issued in 2008 but default not registered with CRA till 2013

[rascal14]

I'm so confused about default notices and the registering of defaults on accounts and was hoping for some help

I was served with a Default notice from a finance company in June 2008, a copy of this was contained in my SAR to the company. I ignored the letter and made no contact with the company
A debt collection agency wrote to me in August 2008 stating that the finance company had served me with a default notice and demanding payment, which I also ignored (I have the original letter)
The debt collection agency sent me another letter in November 2008 saying that my account was in default and the full amount was repayable immediately. I also ignored this letter (I have the original) I did not make any payments on the account and did not make any contact with either the finance company or the debt collection agency.

in the middle of 2009 I was trying to sort out my finances and offered the company a partial settlement, the first one was rejected, I know this because contained in my SAR there was a memo with no date stating that they had a received a letter from me offering a partial settlement of £600 which the memo states was rejected
Now in by SAR there is no copy of this letter that I sent to them and there is no information as to how they rejected my offer, ie no copy of a rejection letter or a phone call
anyway I upped my settlement offer which they accepted and said they would record a partial settlement on the account and would not pursue me for the outstanding amount (I dont have any of the correspondance regarding this and there was nothing in my SAR refering to this either)

So from Feb 2009 until sept 2009 when i made a partial settlement the markers for each month show a red 6, the finance company never registered a default against me.
To make matters worse, they did not honour the terms of the partial settlement agreement and I have a finance company chasing me for the outstanding debt they have even phoned my neighbours to see if I'm still living at my current address) I realise that it is my word against theres re the partial settlement and as I dont have a copy of the correspondence then there is little I can do about this

I have read a lot about the registering of defaults etc, and here is where I am confused, should my default have been registered in 2008 when the company wrote and told me that they had placed my account in default, or should they have registered it 6 months after 2009 when I didnt make any further payments to them (due to me thinking I had settled the account)

What the finance comapny have actually done is continued to place red 6 marks every month right up until jan 2013, when they finally placed a default on the account, which is about the time the latest finance company started chaing me for the debt

I know I have to write to them re the very late registering of the default but when was the actual correct default time 2008, or did i reset the clock by paying them in 2009 (even though there was no payment from march 2008 until sept 2009) what I mean is, is that I dont know when the breach occurred was it when I stopped baying in March 2008 or is the breach from the partial settlement in Sept 2009

Also the same company has misold me PPI insurance which is twice the outstanding debt, which I havent done anything about yet

Any advise or thoughts would be welcomed :-)

[rascal14]

Re: default notice issued in 2008 but default not registered with CRA till 2013

there are also returned dd debit fees of £180 on this each at £30 a time plus a £100 admin fee for passing my debt on to the initial debt collection agency.
Can anyone advise me?

[Nibbler]

Re: default notice issued in 2008 but default not registered with CRA till 2013

From the ICO guidelines that applied at the time.

The definition of a default

9 A ‘default’ can be said to occur as soon as a borrower fails to meet the terms of their credit arrangement. However, adopting this definition for credit referencing purposes would create difficulties since it is accepted that not all these defaults should be reported, for example, where weekly payments are late but are quickly remedied.

The term ‘default’, when recorded on a credit reference file should be used to refer to a situation when “the lender in a standard business relationship with the individual decides the relationship has broken down” 2.

2 Definition of ‘Default Data’ from ‘Information Sharing – Principles of Reciprocity’ available from credit reference agencies or at http://www.experian.co.uk/corporate/...ing/index/html

Where there is an unresolved dispute about whether a default exists, lenders should refer to paragraphs 42 -45.


10 Indicators of a default

The following indicate that a breakdown has occurred in most types of product (excluding those in the section on Exceptions at paragraphs 12-15). This list is not necessarily exhaustive.

• The account has been referred to a collection agency or in-house debt collection department.
• The account has been referred for legal action.
• The account has been included in a bankruptcy, IVA, or similar.
• The asset financed has been repossessed or instructions for repossession have been given.
• The lender takes or has taken steps to cut off the service provided (or would do so if they were not prevented on social rather than commercial grounds or by other regulations, codes of practice or statute).
• The customer has not made satisfactory proposals in response to a demand for repayment.
• The customer has given a clear indication, for example, by handing back an asset, that they do not intend to meet their contractual obligations.
• The lender has evidence that an account has been opened or used for fraudulent purposes by the applicant.

11 Time framework

Although there will be some flexibility in the definition of a breakdown, we believe there should be general rules for the minimum period of arrears which should exist before a default can be filed. Equally there should be a maximum period after which, if anything is to be recorded with a credit reference agency, a default must be filed. The following are in line with the practices currently adopted by most lenders.

• Accounts should not be routinely filed as being in default where full payments or those due under a rescheduled agreement are fewer than three consecutive months in arrears.
• Accounts should normally be filed as being in default where those payments due have not been received for six months.

This time framework only relates to filing defaults. It does not affect the lenders’ ability to continue to report accurately on the extent of arrears using monthly status codes. We recognise that may not always be appropriate for products which advance credit over either a very short or very long-term.


12 Exceptions

We recognise there are circumstances which will be likely to be exceptions to the general standard for most credit products.

13 Factors that are likely to influence whether a particular credit product justifies a full or partial exception to the general standard are:

• if the term of the loan is particularly long;
• if the loan is secured;
• if there is anything special about the nature of the relationship with the customer.

Commonly available products where exceptions are justified are:

1. long-term secured loans; and
2. current accounts with overdraft facilities.

[Nibbler]

Re: default notice issued in 2008 but default not registered with CRA till 2013

They also state.

A record showing a series of payments as six months in arrears when this does not reflect the real payment history should not be used as an equivalent of a default.

[Nibbler]

Re: default notice issued in 2008 but default not registered with CRA till 2013

So given the indicators and the acceptable time frame for recording a default, and that you say...

I was served with a Default notice from a finance company in June 2008, a copy of this was contained in my SAR to the company. I ignored the letter and made no contact with the company
A debt collection agency wrote to me in August 2008 stating that the finance company had served me with a default notice and demanding payment, which I also ignored (I have the original letter)
The debt collection agency sent me another letter in November 2008 saying that my account was in default and the full amount was repayable immediately. I also ignored this letter (I have the original) I did not make any payments on the account and did not make any contact with either the finance company or the debt collection agency.

You have the DN June 2008 and no payments or even contact from you for at least a year. In fact not from March 2008.

It is pretty clear that any default should have been filed at around the same time as the initial default notice, or at the very very latest at the point of 6 months of missed payments. So possibly 6 months from March = Sept 2008.

[Nibbler]

Re: default notice issued in 2008 but default not registered with CRA till 2013

The guidelines applicable to the company and their collectors at the time can be found here:

http://webarchive.nationalarchives.g...3%20%20doc.pdf

or

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

[rascal14]

Re: default notice issued in 2008 but default not registered with CRA till 2013

Thank you so much Nibbler for the reply and for clearing up my confusion, I was hoping that the default should have been placed in 2008 as it should now be of my credit file, but didn't think that I would be that fortunate.
I will read through the forums to get an idea for a letter to send the finance company asking for its removal, but its with creation finance so I know I'm facing an uphill battle

[rascal14]

Re: default notice issued in 2008 but default not registered with CRA till 2013

this is the letter I have drafted does it lool ok, and should I post the letter (recoreded delivery) rather than Email Creation finance?

I do not acknowledge this debt

Dear Sir/madam

Having recently checked my credit report with the various credit reference agencies I was dismayed to find that Creation Finance registered a Default on my account in January 2013. I feel that this is an inaccurate entry as it does not reflect the true status of my account. A default notice was issued against me by you on the 18^th June 2008 after the last payment was made on this account in March 2008. You subsequently passed on this account to Clarity, who wrote to me in August 2008 stating that Creation finance had served me with a default notice under section 87(1) of the consumer credit act 1974. However you failed to register the default with any credit reference agencies within a timely manner as recommended by the ICO, ie within six months, despite the fact that I made no payments on the account and did not respond to any correspondence with either Creation Finance or Clarity. Instead my credit report shows a red status 6 for every month, which is in breach of the ICO guidelines that state

“A record showing a series of payments as six months in arrears when this does not reflect the real payment history should not be used as an equivalent of a default.”

ICO guidelines also state that the time frame for registering defaults is as follows

“Accounts should normally be filed as being in default where those payments due have not been received for six months”.

You issued a default notice against me in 2008 after I failed to meet the terms of my credit agreement, and passed my debt on to a debt collection agency. Passing this debt on is a clear indication of a default and as such the alleged debt is now statue barred. Despite this I am currently being contacted by Cabot finance, who are making payment demands. Had you registered a default with the credit reference agencies in a timely manner, these entries would have been removed from my credit report in March 2014.
Placing a default on an account five years after issuing a default notice is simply vexatious and I request that you remove this entry on my credit report immediately or I will make a complaint to the ICO

Yours Faithfully

[rascal14]

Re: default notice issued in 2008 but default not registered with CRA till 2013

ok so I have fired of three letters to Creation Finance today
One regarding an incomplete SAR
the aboove letter about the defaul
and a ppi claim for £1500

[Nibbler]

Re: default notice issued in 2008 but default not registered with CRA till 2013

May be a bit late for this comment then, but I would have said in the letter that unless they correct the inaccurately dated default, then you will will be making a complaint to the ICO and via the FOS.

I imagine creation will reply with some BS anyway, but might have reduced the likelihood.

[rascal14]

Re: default notice issued in 2008 but default not registered with CRA till 2013

well i have them written and ready to post I'll amend that one now
Thanks again

[Nibbler]

Re: default notice issued in 2008 but default not registered with CRA till 2013

In that case add, something like.

This is now a formal complaint under the remit of the ICO and FOS. I require you to provide me with a copy of your complaints procedure.