Default on Credit Card after no missed payments in 2 Years!

[sean138g]

Hi All,

I was hoping someone may be able to give me some advice.
I recently applied to transfer my mortgage to a new house but was denied this due to a default on my credit report, a default that wasn't there in October 2012 when I took my mortgage out. So, I checked my Experian account and noticed that the Post Office/Bank of Ireland, had defaulted my Credit Card account with a default date of March 2010 but the default was only showing on my account as of December 2012. Obviously it had only been reported to my account in December 2012.

I did miss some payments in early 2010, 4 infact, and I agreed with the Bank when they rang that I would settle the outstanding amount and then pay the remainder in monthly installments, as per most credit cards. I have been paying off the same amount monthly, by direct debit, since then. My credit file shows the balance going down, my bank statements show the money being paid out, my concern is, can they actually do this to me? No notice of default, no notice of intention to default me, no phone call, nothing. just a default on my credit report 3 years later, after not a single missed payment since the original misses?

Thankyou in advance for any advice,

Sean

[ncf355]

Re: Default on Credit Card after no missed payments in 2 Years!

Unfortunately there is little connection between a default notice and a default on a credit file - normally they would only serve a default under section 87/88 of the consumer credit act if they intended to terminate and request the total balance/head to court.

Had you paid the full amount of arrears owing at the 4 month point, (technically, at least) they could not have placed a default on your file as the standard position is a default = 6 months late

However, because you spread the amount owing for the 4 months across a longer period (and are still paying the arrears in instalments), you failed to keep to the terms of the agreement for more than 6 months and "defaulted".

This is a classic example of comments I have made elsewhere, had you have been made aware at the time the default was placed, you would then have known that regardless of whether you paid or did not pay, there would still be a default on your file for 6 years, so there was little point in paying them anything.

The only thing you could do in your favour is insist the default is registered from the date of default, 6 months after payments first stopped being met, at least then the default would drop off in 6 years from the actual default rather than some arbitary date.

Please don't take the above as gospel and await other comments in addition to mine as I only comment based on experience and reading the forums.

[sean138g]

Re: Default on Credit Card after no missed payments in 2 Years!

sorry, I suppose I wasn't very clear on what I wrote originally.
The arrears were settled in full, on the phone call I received when I was four months late, the account then showed as up to date adds I paid off the remaining balance gradually, the current balance is 178.19 with no missed pavements since march 2010.
Many thanks for your time and advice in replying though.
I spoke to a wonderful guy named Karl from Bank of Ireland today who has agreed to clear the default in its entirety if I pay off the remaining 178 within 7 days. Needless to say I got Karl to email me and confirm in writing that the default would be completely wiped rather than just being marked as satisfied, which he did. So I've paid it off as soon as I got the email. Seems like a lucky escape from a default!
Again, many thanks for takin the time to reply though!