Default Notice issue time limits, is there such a thing?

[sharry]

Hi All,

I've had a look around the forums and I can't seem to find anything that exactly answers my question.

We had some financial difficulties in 2011 due to redundancy and entered a DMP which has since been paid in full early last year. Looking through the history of the debts on my credit file, I notice that two of them had DN's issued 11 and 15 months AFTER the start of payment difficulties. My other debtors issued them within a couple of months which, looking at the ICO website, seems to be standard practice they be sent within 3-6 missed payments. My question is this, before writing to the companies involved, are there any legal or industry regulations I can quote to back up asking them that they backdate the DN's to nearer to the time of the problems? Should they have been issued within a certain timeframe?

We're saving for deposit on a house and the extra 1+year of them being recorded on our credit file would be a problem with regards to getting a mortgage.
Many thanks.

[charitynjw]

Re: Default Notice issue time limits, is there such a thing?

Hi All,

I've had a look around the forums and I can't seem to find anything that exactly answers my question.

We had some financial difficulties in 2011 due to redundancy and entered a DMP which has since been paid in full early last year. Looking through the history of the debts on my credit file, I notice that two of them had DN's issued 11 and 15 months AFTER the start of payment difficulties. My other debtors issued them within a couple of months which, looking at the ICO website, seems to be standard practice they be sent within 3-6 missed payments. My question is this, before writing to the companies involved, are there any legal or industry regulations I can quote to back up asking them that they backdate the DN's to nearer to the time of the problems? Should they have been issued within a certain timeframe?

We're saving for deposit on a house and the extra 1+year of them being recorded on our credit file would be a problem with regards to getting a mortgage.
Many thanks.

Hi sharry

What were the debts for?

[sharry]

Re: Default Notice issue time limits, is there such a thing?

They were a credit card and an unsecured loan, MBNA and Santander respectively if that helps. Thanks for the quick reply BTW.

[charitynjw]

Re: Default Notice issue time limits, is there such a thing?

They were a credit card and an unsecured loan, MBNA and Santander respectively if that helps. Thanks for the quick reply BTW. You're welcome

Were payments being made to the original creditors?

[sharry]

Re: Default Notice issue time limits, is there such a thing?

Santander yes, MBNA was taken up by PRA Group UK 3-4 months after the DN was issued. I'm assuming I would have to contact both MBNA & PRA separately to get them to amend the dates if at all possible.

[charitynjw]

Re: Default Notice issue time limits, is there such a thing?

Santander yes, MBNA was taken up by PRA Group UK 3-4 months after the DN was issued. I'm assuming I would have to contact both MBNA & PRA separately to get them to amend the dates if at all possible.

Why MBNA?

Who is currently 'reporting' this one?

[sharry]

Re: Default Notice issue time limits, is there such a thing?

Why MBNA?

Who is currently 'reporting' this one?

Not sure what you mean by reporting... Both debts were paid off last year, it's not until recently that I've noticed the long time it took for the DN's to be issued. MBNA passed the debt/was bought by PRA after I'd been paying MBNA for around 16 months on the DM plan, they issued the DN after 11 months. If that makes sense?

[charitynjw]

Re: Default Notice issue time limits, is there such a thing?

Not sure what you mean by reporting... Both debts were paid off last year, it's not until recently that I've noticed the long time it took for the DN's to be issued. MBNA passed the debt/was bought by PRA after I'd been paying MBNA for around 16 months on the DM plan, they issued the DN after 11 months. If that makes sense?

If MBNA have sold (assigned) the debt, it should be PRA that is currently the named owner that is on your CRA file.
Is that correct?

[nemesis45]

Re: Default Notice issue time limits, is there such a thing?

Not sure what you mean by reporting... Both debts were paid off last year, it's not until recently that I've noticed the long time it took for the DN's to be issued. MBNA passed the debt/was bought by PRA after I'd been paying MBNA for around 16 months on the DM plan, they issued the DN after 11 months. If that makes sense?

A Default Notice and a default are not the same thing.

A DN is issued when payments are missed but if a DMP or an arrangement to pay is set up, or arrears are paid a Default is not registered with CRA's.

The ICO's" Guidance " on Defaults is just that guidance and creditors can and do have their own in house systems some may default an account after 2-3 missed payments others will mark CRA files with arrangement to pay markers but don't default until perhaps they feel that an AP/ DMP is not reducing a debt efficiently.

Defaults are not registered under normal circumstances by Debt Purchasers such as PRA so when you entered the AP with MBNA is has decided ( as it can) not to register a default until it felt the AP was for instance not financially viable for them to continue .

If you want to attempt to have the defaults amended you need to write to the Data Controller at the original creditors head office. They do not have to agree to amend the entries, if they refuse you can put your case to the ICO.

nem

[sharry]

Re: Default Notice issue time limits, is there such a thing?

If MBNA have sold (assigned) the debt, it should be PRA that is currently the named owner that is on your CRA file.
Is that correct?

That's correct, or it was until we paid it off. I've also realised that they (PRA) are showing the debt as a default on my credit file even though we were making the agreed payment and had no problems... should this be showing as this as we were never in default with them?

[sharry]

Re: Default Notice issue time limits, is there such a thing?

A Default Notice and a default are not the same thing.

A DN is issued when payments are missed but if a DMP or an arrangement to pay is set up, or arrears are paid a Default is not registered with CRA's.

The ICO's" Guidance " on Defaults is just that guidance and creditors can and do have their own in house systems some may default an account after 2-3 missed payments others will mark CRA files with arrangement to pay markers but don't default until perhaps they feel that an AP/ DMP is not reducing a debt efficiently.

Defaults are not registered under normal circumstances by Debt Purchasers such as PRA so when you entered the AP with MBNA is has decided ( as it can) not to register a default until it felt the AP was for instance not financially viable for them to continue .

If you want to attempt to have the defaults amended you need to write to the Data Controller at the original creditors head office. They do not have to agree to amend the entries, if they refuse you can put your case to the ICO.

nem

Thanks nem, that's answered some questions for me. I thought they could issue a DN whenever they wanted, which seems unfair, but I wanted to check I'd understood it. I'll get in touch with them. I'll also get in touch with PRA who bought the MBNA debt as they also registered the payments as default each month even though they were never defaulted on. Surely if they buy a debt and you keep to the agreed payments they can't register it as defaulting each month? We actually paid the debt off a few months early.

[charitynjw]

Re: Default Notice issue time limits, is there such a thing?

Thanks nem, that's answered some questions for me. I thought they could issue a DN whenever they wanted, which seems unfair, but I wanted to check I'd understood it. I'll get in touch with them. I'll also get in touch with PRA who bought the MBNA debt as they also registered the payments as default each month even though they were never defaulted on. Surely if they buy a debt and you keep to the agreed payments they can't register it as defaulting each month? We actually paid the debt off a few months early.

Hi sharry

When a 'thing in action' is assigned, the assignee, as the new owner, 'steps into the shoes' of the assignor as regards the benefits of that 'thing' (ie a debt).

An assignment of a CCA 1974 (the Act) agreement is slightly different, as the Act also makes the assignee liable for any 'burden' imposed on the original creditor by virtue of the Act.
For instance, the assignee is bound by statute to comply with a s77-79 request for documentation.

[sharry]

Re: Default Notice issue time limits, is there such a thing?

Thanks again Charitynjw for all your time and explanations.

[nemesis45]

Re: Default Notice issue time limits, is there such a thing?

Thanks nem, that's answered some questions for me. I thought they could issue a DN whenever they wanted, which seems unfair, but I wanted to check I'd understood it. I'll get in touch with them. I'll also get in touch with PRA who bought the MBNA debt as they also registered the payments as default each month even though they were never defaulted on. Surely if they buy a debt and you keep to the agreed payments they can't register it as defaulting each month? We ac tually paid the debt off a few months early.

Any " arrangement" to pay can technically be seen as a Default. The default placed by the original creditor is only updated by a debt purchaser the credit file is correct as the payment made were not those contractually required.

The entry remains on all credit reference agency files for 6 years from the default placed on CRA file by the original creditor after which it will be removed paid or not.
All appears to have been properly reported.

nem

[sharry]

Re: Default Notice issue time limits, is there such a thing?

Any " arrangement" to pay can technically be seen as a Default. The default placed by the original creditor is only updated by a debt purchaser the credit file is correct as the payment made were not those contractually required.

The entry remains on all credit reference agency files for 6 years from the default placed on CRA file by the original creditor after which it will be removed paid or not.
All appears to have been properly reported.

nem

Many thanks nem.