Default notice not received

[Desotuatail]

I am unemployed and have suffered heavily at the hands of a credit card company. They have defaulted my credit report without issuing any notice of default. They claim they sent 2 out a month apart but have been unable to produce copies of them to either me or the Financial Ombudsman. I never received any and now they are changing their story. They now say because I had a DRO it did not matter if they sent a letter of default or not. DRO are fairly new in UK. I have checked Consumer Credit Act 1974 section 78 but it does not mention any exemption to DRO. Can they get away with this?
They claim it is there policy that the customer has to inform them after the 12 month moratorium period that it is over. I do not see that in their terms and conditions.

[FlamingParrot]

Re: Default notice not received

How long ago did you have your DRO? Was this credit card not included in it? :confused2:

A DRO is a form of insolvency, if you have one of them on your credit records, an extra default isn't likely to make much difference to your credit worthiness, not unless the default was recorded many years later, dates are important here.

If you failed to maintained contractual or minimum payments on the credit card for whatever reason, they are entitled to report that fact to the credit reference agencies.

[Guest]

Re: Default notice not received

It will be a term in your agreement in any case that any form insolvency would terminate the agreement and make all sums due under it immediately payable.
A default notice under section 87 is only issued if the creditor wishes to enforce on default.

As FP says the requirement for them to place a default marker on your file is a different process anyway and is simply a record of your repayment history.

[Desotuatail]

Re: Default notice not received

My DRO was issued on 27-Nov-2009. I wanted to purchase something in a shop in July 2012. I was informed that I was being turned down because I owed money to a credit card company. The only creditor on my report was Nat West. They were included in my original DRO. They defaulted me in Oct-2009 one month before they received the DRO because I had gone over my limit by 4p. I never received a letter telling me that I would be in default if I did not do anything about it. They claimed they sent the letter 1st Oct-2009 (immediately the next day. They claimed they sent a second letter 1st Nov-2009 (still long before the DRO was received). I didn't receive that letter either. They are unable to produce copies of the original letters to me via subject access request or to the financial ombudsman. They have admitted they can't produce them.

They are now saying that because they received a DRO 3 weeks later it did not mater whether they sent them or not I would still have been defaulted anyway. But I claim that they were wrong as they never sent any letters and they can not prove that they did.

[FlamingParrot]

Re: Default notice not received

My DRO was issued on 27-Nov-2009. I wanted to purchase something in a shop in July 2012. I was informed that I was being turned down because I owed money to a credit card company. The only creditor on my report was Nat West. They were included in my original DRO. They defaulted me in Oct-2009 one month before they received the DRO because I had gone over my limit by 4p. I never received a letter telling me that I would be in default if I did not do anything about it. They claimed they sent the letter 1st Oct-2009 (immediately the next day. They claimed they sent a second letter 1st Nov-2009 (still long before the DRO was received). I didn't receive that letter either. They are unable to produce copies of the original letters to me via subject access request or to the financial ombudsman. They have admitted they can't produce them.

They are now saying that because they received a DRO 3 weeks later it did not mater whether they sent them or not I would still have been defaulted anyway. But I claim that they were wrong as they never sent any letters and they can not prove that they did.

If the DRO was recorded in 2009, it will stay on file for 6 years, till 2015. As a form of insolvency, the presence of a DRO on your file is likely to affect your ability to obtain credit more than a default. In this case, the default was recorded at almost the same time as the DRO, would be different if you had a fresh default recorded years later, in which case it would remain years after the DRO has dropped off.

http://www.adviceguide.org.uk/wales/...ief_orders.htm

Getting credit
Your debt relief order will appear on your credit file. It will remain on your file for six years. This may affect your ability to get credit in the future.

You may find it difficult to open a bank account once you have a debt relief order.

[Desotuatail]

Re: Default notice not received

I realise that. The shop keeper did not turn me down because I had a DRO. He turned me down because I owed money on a credit card. This was actioned before the DRO was made. Are you saying that if I had not taken out the DRO and I owed money to the credit card company (oct-2009) then they could default me without sending a single letter to me. A warning letter stating unless I correct this even. I think that is against the consumer credit act 1974 Sections 87 and 88. "Need for default notice.E+W+S+N.I.
(1)Service of a notice on the debtor or hirer in
accordance with section 88 (a “default notice ”) is necessary before the creditor or owner
can become entitled, by reason of any breach by the debtor or hirer of a
regulated agreement,—
"

[Guest]

Re: Default notice not received

The requirements of the CCA have nothing to do with the creditor recording a default on your file in any case, the section 87 notice is only required prior to enforcement.

[FlamingParrot]

Re: Default notice not received

I realise that. The shop keeper did not turn me down because I had a DRO. He turned me down because I owed money on a credit card. This was actioned before the DRO was made. Are you saying that if I had not taken out the DRO and I owed money to the credit card company (oct-2009) then they could default me without sending a single letter to me. A warning letter stating unless I correct this even. I think that is against the consumer credit act 1974 Sections 87 and 88. "Need for default notice.E+W+S+N.I.
(1)Service of a notice on the debtor or hirer in
accordance with section 88 (a “default notice ”) is necessary before the creditor or owner
can become entitled, by reason of any breach by the debtor or hirer of a
regulated agreement,—
"

Creditors are allowed to record a default with the CRAs if you fail to meet contractual payments because the CRA files are meant to reflect your conduct with the account, this is totally separate from enforcing through the courts (obtaining a CCJ), which is what the CCA deals with. Reporting to the CRAs is covered by the Data Protection Act and the guidelines for filing defaults can be seen here: http://www.ico.org.uk/for_organisati...%20%20doc.ashx

As your negative entries are over 3 years old, others may still give you credit, not everyone searches the full 6 year history. :thumb:

[Desotuatail]

Re: Default notice not received

Yes and I have taken this up with the ICO and the ICO have agreed with me that they had not complied with the data protection act. Also can I point out that information on your credit report does NOT have to remain on your file for 6 years. A creditor can remove themselves voluntarily as have all the others. Do creditors have to write to you(In keeping with the Consumer Credit Act 1974) informing you of any action or not? Other creditors did write to me and state that they are writing to me in compliance with the law? I have letters from others. The shop keeper turned me down because I owed money on a credit card. After 2.5 years my debt is written of that is also the case.