Defaults

Just a general question on Defaults registered with the CRAs. Apologies if covered elsewhere. If an account was defaulted and a valid DN sent say 5 and half years ago, but the agreement was not terminated eg repayment plan, can the creditor default you again if you stop paying?

[shamen]

Re: Defaults

One default per account. they cannot default you again when a default already exits on your credit file for that account. They can only reduce the balance outstanding registered to that default (or increase it if interest is applicable and you stop paying). It will drop off after 6 years.However, they can take you to court if you stop paying and then a CCJ will go on, which lasts from the date of the judgement, not the date of default.

[The Debt Star]

Re: Defaults

thanks, thats reassuring.

[Dizzie]

Re: Defaults

Can I add some more general questions to this thread?


1. Can OC register a DN with a CRA 15 months after they've issued it?
2. If the account has been closed, and subsequently terminated by demanding payment of the account in full can they issue another DN and register this?
3. Does the late recording of the DN mean that this defaulted record will stay on credit file longer?


Cheers Wils

[shamen]

Re: Defaults

1. Can OC register a DN with a CRA 15 months after they've issued it?

The date of default on your credit file must match the date on the default notice you were sent. If the date on the default notice you were sent is different from the one on your credit file, the CRA's can update this (you will need to use the Data Protection Act to update incorrect information - they will want a photocopy of the original DN - dont send the original). You can also contact the people logging the Default and let them know of their inaccuracy via a DPA notice.

2. If the account has been closed, and subsequently terminated by demanding payment of the account in full can they issue another DN and register this?

If a default notice has already been logged for an account, they cannot issue another one for the same account, no matter if its been assigned to another company. They can take you to court though if you dont pay them and there is a valid agreement. Sometimes you will find Company X registers a default and then years later sells the debt to Company Y, who also log a default. This means you have two defaults for the same account. The CRAs can fix this, again using the DPA (and I have successfully done just that) as there should be only one Default per account - which should also match the date on the original default notice. Its not unknown for Defaults to be updated to indicate the date of default as the date Company Y bought the debt (thus ruining your credit longer). This is inaccurate data and is fixable under Law (DPA). If you have never had a default on the account, then they can register one from the date they specify on the default notice.

3. Does the late recording of the DN mean that this defaulted record will stay on credit file longer?

Yes its 6 years from the date of default recorded with the CRA. Again, if you have a DN saying (for example) 'Jan 2006' but the default is on your credit file as 'Aug 2007' then that is inaccurate data which you can have the CRA's update using the original DN as proof.

On a side note - should any of the defaults (assuming you have any) on your credit file have dropped off already? eg they are over 6 years old but because they are recorded incorrectly are still on there?

[Dizzie]

Re: Defaults

Thank you for coming back to me on this -

The B/C default is the only "black mark" on my credit file -

I have an ongoing dispute with B/C regarding PPI - Things turned sour when B/C wouldn't look into my complaint properly, ignored all my correspondence and refused to cancel the PPI.

They'd made an error with the account by closing the original and opening a new one and re-instating PPI. When I sent a DSAR in Oct 08 they didn't send me all the statements I needed to re-claim the PPI for all the accounts. After several ignored letters I decided to stop paying them and take them to court for non-compliance in Jan 09, The claim was issued in Feb 09 and they got the hump and stopped sending me monthly statements.

Mercers sent a DN for a couple of min payments and over limit amount on 23/05/09 - At this point I didn't know if they were still applying PPI but the amount on the DN implied they were as it was for about £200.00. In the DN they stated I had breached credit agreement by not paying min amount by due date on statements.
I wrote to Mercers and pointed out the errors in their DN - I know everyone says you shouldn't do this but.... I told them that due to B/C's failure to send statements, even though I had requested them, that B/C had breached of both their own T & C's and CCA S78 (4) by not supplying me with the monthly statements and until this was rectified the account was in dispute and unenforceable.

According to the Witness statement sent to Court by B/C (at the DSAR hearing) they closed the account with-in a week of this DN.

I've written a couple of times asking for statements of the account - waste of time!
Since January 09 B/C have been registering "late payment" on my CRA file and I've had First Credit Management, Moorcroft and Wescot chasing for what appears to be the full balance including PPI. All have been asked politely to go away - and all have done so. - then in August this year B/C registered a default.

I'm about to send another DSAR request as the balance on my credit file has been going up and down on it's own - so I need to find out what they've been doing with the account and try and get this sorted once and for all

Dizzie

[shamen]

Re: Defaults

Did the court order their compliance with the SAR and did they comply? Can you scan and post up the original default notice (remove personal details first of course!)? Did they include a copy of the CCA in the SAR response?

[Dizzie]

Re: Defaults

I'll dig out the DN and post it up - (if I can) -

Yes I got my statements, logs, an illegible (DJ's word's not mine) microfiche copy of an application form and some T & C's that I'd already queried- B/C provided a template copy application "to assist me"- both in the DSAR paperwork sent to me and in their court bundle - but it was the wrong template. I assume this will cast doubt on the provenance of the right one if they produce in the future and give me bargaining power to negotiate.

The Barrister at this hearing said he beleived that B/C microfiched their documentation and destroyed originals after 6 years. I did point out that my request for a copy was with-in the 6 year time frame so couldn't understand why they had delayed for 6 months and provided me with a poor copy and incorrect T & C's.

At the end of the hearing it was decided that I might not have got all the documents that I wanted, but B/C couldn't give me what they didn't have - therefore they had fulfilled their DSAR requirements and the DJ dismissed the case - both sides to pay their own costs - It cost me £35.00. So technically I lost my case - but got the answers I wanted.

Not added a link before - I think I've done it right if not I'll try again

http://i422.photobucket.com/albums/p...faultpage1.jpg
http://i422.photobucket.com/albums/p...faultpg2-1.jpg

Dizzie

[shamen]

Re: Defaults

Right, the default date on your credit report should be the date of default, so thats (i think) June 10 2009 (though it may be 24 may 2009, either way, it should not be august 2010)

Write to all three CRA's and use the data protection act to dispute the default entry on your credit file - it is inaccurate data. You will need to send a copy of the default notice to them along with that letter. Dont ask them to update the data (as they may just change the date), just state that the default entry is invalid data and the copy of the default notice supports this claim - this is enough for the entry to be removed. They will have to contact B/C who will either reply and the correct date will be put on there, or they will fail to reply and the CRA will remove the default until B/C do reply.

That aside, I think something smells very fishy about all this

At the end of the hearing it was decided that I might not have got all the documents that I wanted, but B/C couldn't give me what they didn't have

It seems to me like they have stated in court they do not have a CCA for you? Even if it was on microfiche they have to provide you a copy in your SAR. If its the case they do not have a CCA then im not sure how they can process your personal data. Perhaps a section 10 notice is in order, which they will likely deny due to 'performance of contract' but of course if they cannot produce said contract, how can they have the right to process your data. If they do produce a CCA then they have been naughty in court and lied about not having it in your DPA case.

[Dizzie]

Re: Defaults

That aside, I think something smells very fishy about all this

It seems to me like they have stated in court they do not have a CCA for you? Even if it was on microfiche they have to provide you a copy in your SAR. If its the case they do not have a CCA then im not sure how they can process your personal data. Perhaps a section 10 notice is in order, which they will likely deny due to 'performance of contract' but of course if they cannot produce said contract, how can they have the right to process your data. If they do produce a CCA then they have been naughty in court and lied about not having it in your DPA case.

They supplied the illegible copy of the microfich, which was a Feb 2003 application form, this is the only copy they have and a copy of the same into their court bundle in July 09. That's why they provided a blank template to cover their backsides - only they put a template in for a different mail shot to the one I replied to.

I sent them a section 10 notice in April 2009 to the Registered Office, I sent it via Fedex to ensure they got it, they opened the package, then refused to accept delivery and returned it to me. I sent it again in July 09 recorded, although they signed for it they didn't acknowledge.

In Feb 07 they closed the original account and transferred the balance to a new account - without my knowledge using data from the 2003 application - I have written to them and told them that my permission to share data was given for them to open an account in 2003 and for that account, permission is not enduring and they must restrict their reporting to the original account - Again they've ignored this. I've reported the matter to the ICO who , by co-incidence have answered my complaint today - but I don't think they've quite grasped the nature of my complaint.
Dizzie