Hello & Help! - Unfair Default applied

[garden]

A big hi to everyone on this forum. I have just stumbled upon it whilst trying to resolve a problem with Bank of Scotland and after nosing around can't believe how much good info there is on here, great stuff. Bank of Scotland have applied a default to my credit file incorrectly and I am in need of some advice. Brief history: I had a Bank of Scotland credit card which I got a few years ago, balance got up to nearly 5k in the latter half of last year, they then offered me a interest rate rise of 5% which I chose to reject and close the card, it was agreed I could do this and settle the debt at the existing interest rate provided I met the minimum payment each month. A few months later one payment was a couple of pounds under (input error on my part) so I phoned them re the payment fee, explained I was pretty broke and couldn't afford to be charged £12, they acknowledged I had perfect payment history and agreed to remove the fee. During the course of the conversation I was asked if I wanted to go through my income etc as they could accept a payment based on what I could afford, I found this a bit surprising and overly reasonable for a bank. The person on the phone advised me that after going through the figures I could afford £40 per month. I was told that if I paid this each month they would accept this and I wouldn't get any charges, I queried this and was told that providing I paid each month I wouldn't be charged for not meeting the minimum payment (£68ish). I was also advised that the interest rate would be frozen at 0.5%. In January I got a letter from them which advised me that there was going to be a default on the account. I contacted them immediately by phone to discuss this as I would have done anything to avoid having a default. The guy on the phone (I got his details) told me to disregard the letter as I had an payment agreement in place with them until April. I read the letter back to him explaining it said I was going to get a default and what this involved and was repeatedly told to disregard the letter and it had been produced by a computer. Last week I got the monthly statement on it had a bit of interest on it so I phoned to query it during the course of this conversation I learned that the advice I was given was wrong and that a default and late payment markers were put on my credit file. I have put a complaint in to Bank of Scotland and the Ombudsman. My complaint with Bank of Scotland was (1) that I was not advised at all of the implications of the payment plan in fact I was mislead and lied to. (2) I received a Notice of Default and when I contacted them I was told to ignore it. They have responded today in writing and obviously listened to the phone calls as they have accepted they have given me bad information and not explained everything. They say they have let me down and sent a cheque for £75 to "put things right" which obviously it doesn't. I want them to remove the default but they have stated that as minimum payment weren't made etc they recorded a default. Phew...takes breath. Anyway sorry for the hugely long post but I want this default removed....how feasible is this bearing in mind the above.....?

[labman]

Re: Hello & Help! - Unfair Default applied

It is quite normal for a default to be registered in these circumstances, as you have effectively entered into a DMP with them. HOWEVER - it should have been put in writing, and made clear to you that this is what would happen. Had you gone through a DMP provider, this would have been the case - you'd have complete your I&E, sent in an offer based on that, asked for ALL interest to be frozen (not reduced to 0.5% but to 0%); you'd then have received a letter back accepting your offer and telling you that a default would be recorded.

If you were struggling to meet payments, they might actually have done you a favour as they've defaulted you quickly. This is by no means always the case. Your default will fall off after 6 years, but the debt may continue well beyond that. You will almost certainly find they'll sell it to a DCA before too many months have passed.

Have you suffered any loss as a result of the default being placed (-ie- applied for credit and been refused because of the default being there). This, I believe, has a big bearing on compensation awarded in these cases.

[Rico]

Re: Hello & Help! - Unfair Default applied

Hi garden,

You are relying on humanity. Go into bank of Scotland and speak to a human. (Good luck in finding one!) They have discretionary power to remove the default. If they don't they're being malicious.

If it's not removed by 1st April (and you can do this anyway if you like), sue for general damages for damage to creditworthiness. Ask for the judge to assess the damages and indicate that £8K has been awarded in case law (Durkin v HFC).

That should get the default removed and a wedge of beer chits to avoid them having to defend their malicious antics in court.

Cheers,

Rico.