DCA and Default Notice

[Wbear]

Need some help please

Have an Egg loan which defaulted in 2006 and Egg filed a default. The DN will drop from the credit file at midnight tonight.

In July last year Britannica Arrow bought the loan from Egg

Can or will they file a new default to replace the one which is expiring tonight

Any help here gratefully received

[QCKate]

Re: DCA and Default Notice

Need some help please

Have an Egg loan which defaulted in 2006 and Egg filed a default. The DN will drop from the credit file at midnight tonight.

In July last year Britannica Arrow bought the loan from Egg

Can or will they file a new default to replace the one which is expiring tonight

Any help here gratefully received

I'm 99.99999999999999999% sure they can't. Someone will come along soon and fill in the rest!!!


QCK

[labman]

Re: DCA and Default Notice

You can only be defaulted on a debt once.

[Bingo]

Re: DCA and Default Notice

This is a situation I'm trying to sort out at the moment.

Had 2 defaults recorded years ago by Barclaycard for 2 debts that are now statute barred - low and behold, the DCA has registered them again, with the wrong default date.

Doing a SAR to BC, hope this helps.

[labman]

Re: DCA and Default Notice

This is a situation I'm trying to sort out at the moment.

Had 2 defaults recorded years ago by Barclaycard for 2 debts that are now statute barred - low and behold, the DCA has registered them again, with the wrong default date.

Doing a SAR to BC, hope this helps.

Have you proof of the first default? If you have, then you don't really need to send a SAR. They cannot default you twice for the same debt.

Also, if the debts are statute barred, they cannot be collected legally unless you volunteer to pay. I would send the following:

Creditor or DCA Name
Creditor or DCA Address
Town
County
Postcode





Dear Sir/Madam

Re: Account No/Your Ref:

No debt is acknowledged to your company yet you have contacted me regarding the above account.

As I am sure you are aware, under the Limitation Act 1980, s.5 “an action founded on simple contract shall not be brought after the expiration of six years from the date on which the cause of action accrued.”

No correspondence/payment/acknowledgement of this debt has been made within the last six years and accordingly unless you can provide evidence of payment or written contact from me in the relevant period under s.5 of the Limitation Act 1980, I suggest that you are no longer able to take any court action against me to recover any alleged amount claimed.

Furthermore, the OFT Debt Collection Guidance states that "continuing to press for payment after a debtor has stated that they will not be paying a debt because it is statue barred could amount to harassment contrary to s.40 (1) of the Administration of Justice Act 1970".

I await your written confirmation that no further contact will be made concerning the above account and confirmation that this matter is now closed.

I look forward to your early reply.



Yours faithfully




(Your signature)
(Your Name)

[teaboy2]

Re: DCA and Default Notice

Nor can they issue a default on a debt that is statuted barred either.

[Wbear]

Re: DCA and Default Notice

Labman

Is it written anywhere that a DN can only be filed once and only by the OC?

[labman]

Re: DCA and Default Notice

This is the legislation around Defaults:

1. The Consumer Credit (Enforcement, Default and Termination Notices) Regulations 1983
   
   
2. Consumer Credit (Enforcement, Default and Termination Notices) Amendment Regulations 2006
   
   
3. The Consumer Credit Act 1974 (Electronic Communications) Order 2004 (“the Order”)
   
   
4. Consumer Credit Act 1974 (c.39) - s.87 & s.88 Guidance
   
   
5. The Consumer Credit Act 2006 (amendments)
   
   
6. Consumer Credit Act 1974 Post-contract information requirements

Basically the process of defaults is threefold:


1. A pre-DN telling you the lender isn't happy


2. The DN which says you'll be defaulted unless you clear arrears within 14 days


3. Termination Notice - you will now have been defaulted and the default registered with a CRA.



Part 2 is the critical bit. The first bit of legislation quoted states quite clearly that only the OC, or owner of the debt can register a default. It stands to reason that if the account has been terminated this cannot happen twice.



Hope this helps.

[Angry Cat]

Re: DCA and Default Notice

Need some help please

Have an Egg loan which defaulted in 2006 and Egg filed a default. The DN will drop from the credit file at midnight tonight.

In July last year Britannica Arrow bought the loan from Egg

Can or will they file a new default to replace the one which is expiring tonight

Any help here gratefully received

In short, NO!

This falls under the DPA;
a default can only be processed for six years from the date it was first registered with the CRA's.

Hopefully, you have documentary evidence providing proof that said information has already been processed for the maximum time allowed?