Has his default been applied unfairly?

[Dave4321]

Hi,
I am supporting my brother. He has been very unwell with his mental health following a massive breakdown and 2 bereavements. One of things that has been affected is his finances - He has really let things slip and I have been helping him to get back on track.
A few days ago he had a alert telling him that he had received a default on one of his credit accounts. It's an account that he knew was overdue, but he was adamant that he hadn't had any correspondence regarding a default being issued. My initial thought was that he had received this letter, but had just not acted on it, however I have since learned that this isn't correct..
We called the company yesterday and he passed security and gave me permission to speak. The person we spoke to confirmed that no default notice had been sent out. FCA regulated firms are supposed to send a formal default notice out which gives customers at least 14 days to pay the arrears or they will issue the default - this didn't happen. The person on the phone was unable to explain why the letter hadn't been sent out and has raised it as a complaint.
He did receive a 'notice of intent to issue a default' letter in April 2024 but he cleared his arrears after that so it can't be related to that. The person on the phone also agreed that a letter from 16 months ago would not be related to the recent default.
He's made great progress with his mental health and this default has massively set him back. He was also about to return to his former career but a default on his credit file will impact this.
I have read about the obligations that lenders have and it does appear that the issue of a default notice is a legal obligation. Not sending this didn't give him the opportunity to pay the arrears. We have proposed that they remove the default and in return we clear the whole balance - I will pay it for him for now. Do you think that they will uphold our complaint and allow this? There's no dispute that he was overdue with his payments, but surely they have to follow the legal requirements?
AIBU in thinking that this default needs to be removed?

[echat11]

Hi Dave

Welcome to LB

I think you've made good progress, it's good that the Creditor has been 'good' so far in the
information they have provided, it's been 'upfront'. It's good that you've raised a complaint and
are following their complaints procedure.

You maybe entitled to compensation.

Send them a Subject Access Request, make sure you get Proof of Postage. You should
request a recording of your recent conversation with them, just incase they do a 'u-turn'.

https://legalbeagles.info/library/gu...ccess-request/

If you aren't happy with their decision, then you can lodge a complaint with the FOS.

They have to send a Default Notice, as stated in the Consumer Credit Act 1974.

They also state this in their own Terms and Conditions which they've 'breached'.

(When I've written 'you', I do mean your 'brother', It's good to see you're helping him and
he's making progress)

Update the thread when you get a response.

[Dave4321]

Hi Dave

Welcome to LB

I think you've made good progress, it's good that the Creditor has been 'good' so far in the
information they have provided, it's been 'upfront'. It's good that you've raised a complaint and
are following their complaints procedure.

You maybe entitled to compensation.

Send them a Subject Access Request, make sure you get Proof of Postage. You should
request a recording of your recent conversation with them, just incase they do a 'u-turn'.

https://legalbeagles.info/library/gu...ccess-request/

If you aren't happy with their decision, then you can lodge a complaint with the FOS.

They have to send a Default Notice, as stated in the Consumer Credit Act 1974.

They also state this in their own Terms and Conditions which they've 'breached'.

(When I've written 'you', I do mean your 'brother', It's good to see you're helping him and
he's making progress)

Update the thread when you get a response.

Thank you - do you think that he has a good chance of the default being removed? We think that they should remove it and then apply the process correctly. Had the notice been sent then it would be my brothers fault and we could accept it.

[echat11]

Thank you - do you think that he has a good chance of the default being removed? We think that they should remove it and then apply the process correctly. Had the notice been sent then it would be my brothers fault and we could accept it.

Yes, but see what they say and do.