Invalid Default Notice

[Bakerbaz]

Hi there, im
new to the forum and looking for some advice.

Basically, in 2010 I started studying a part time degree through a generic provider.
I used the company's financial services to fund this. A few months back I checked my credit report and noticed I have a default from the above. I firstly have no recollection of receiving this and although I remember missing a few payments I only ever received contact from the above a solicitors. Once this was made I satisfied the full amount outstanding assuming the matter would be finished.
Once I noticed this default I contacted the lender and informed them I had no recollection of ever receiving a default or termination notice and that only when I had contact from solicitors was I aware of any discrepancies. They basically told me in no uncertain terms would they remove this from my report. So I asked for a copy of my default and termination notices.

On inspection of these it appears to me that they are invalid. The dates are wrong and they are not set out In the prescribed form.

This has stopped me gaining credit for several years and I am now in the process of remortgaging which is being made extremely difficult. Is there anything I can do???

Regards

mark

[Nibbler]

Re: Invalid Default Notice

Default entries with the CRAs are not the same thing as a default on your credit report. They just use the same terms, and can in many cases coincide roughly in time.

Does you initial contract or terms warn that non payment could be reported to the CRAs?

[FlamingParrot]

Re: Invalid Default Notice

Hi there, im
new to the forum and looking for some advice.

Basically, in 2010 I started studying a part time degree through a generic provider.
I used the company's financial services to fund this. A few months back I checked my credit report and noticed I have a default from the above. I firstly have no recollection of receiving this and although I remember missing a few payments I only ever received contact from the above a solicitors. Once this was made I satisfied the full amount outstanding assuming the matter would be finished.
Once I noticed this default I contacted the lender and informed them I had no recollection of ever receiving a default or termination notice and that only when I had contact from solicitors was I aware of any discrepancies. They basically told me in no uncertain terms would they remove this from my report. So I asked for a copy of my default and termination notices.

On inspection of these it appears to me that they are invalid. The dates are wrong and they are not set out In the prescribed form.

Are you referring to a default notice issued under s.87 of the Consumer Credit Act?

Was the agreement regulated under the Consumer Credit Act in the first place? Even if it was, a defective DN doesn't preclude reporting to the CRAs, however, you should have been informed that they would report to the CRAs.

You may want to look at the ICO Guidance Notes for reporting to the CRAs: http://www.ico.org.uk/~/media/docume...%20%20doc.ashx

32 Lenders should tell their customers about filing information with a credit reference agency as part of the account opening procedure, in line with the requirements of the ‘fair processing code’. This explanation will not normally refer explicitly to defaults and will often be distant from the events which cause them. Therefore we strongly recommend that a notice of the intention to file a default should be served. Many lenders now subscribe to trade association codes of practice which require this. This practice helps the transparency of the credit reference process and may even prompt payment, so avoiding the need to file a default at all.

[Bakerbaz]

Re: Invalid Default Notice

Are you referring to a default notice issued under s.87 of the Consumer Credit Act?

Was the agreement regulated under the Consumer Credit Act in the first place? Even if it was, a defective DN doesn't preclude reporting to the CRAs, however, you should have been informed that they would report to the CRAs.

You may want to look at the ICO Guidance Notes for reporting to the CRAs: http://www.ico.org.uk/~/media/docume...%20%20doc.ashx

Hi chaps , thanks for the advice.

Just to to clarify am I right in saying then that regardless of if the default was invalid I can't get it removed from my credit report?

i believe that it did state in the credit agreement that information could be shared

[charitynjw]

Re: Invalid Default Notice

Paras 30-45 of the above-mentioned guide should give you the answer.

[FlamingParrot]

Re: Invalid Default Notice

Hi chaps , thanks for the advice.

Just to to clarify am I right in saying then that regardless of if the default was invalid I can't get it removed from my credit report?

i believe that it did state in the credit agreement that information could be shared

There is a difference between a 'defective' default notice, i.e. one that doesn't comply with s.87 of the CCA for a number of reasons, usually not allowing enough time to remedy the breach or demanding the full amount instead of the arrears, or the wrong amount, and an erroneous default which shouldn't have been recorded in the first place.

If you broke the terms of your agreement by failing to make contractual payments, a default can be recorded. A defective default notice doesn't mean you can have the default removed, not unless it was recorded in error, for example, if you had paid the arrears and kept up payments after that, a default shouldn't have been recorded.