Defaults and Defaults!!

lkava5 · 11 February 2009 at 11:18AM

Hi

I was wondering if anyone could give me advice. I defaulted on 2 debts a few years ago. The debts were eventually passed to DCA, I sent a letter to both DCA's asking them to provide a signed agreement as I was in dispute with the original creditor. Neither of the DCA's could do this so the debts were returned to the original creditor. I have since had 2 more DCA's chasing these Debts, I have sent letters to both of these again asking for the signed agreements and I am waiting to hear back form them. The thing is when I have checked my Credit Report the DCA's have placed Defaults on my account. This is in addition to the original creditors defaults. Can they do this? I was under the impression that you can only receive one default on a debt? Any help would be really appreciated, I have just managed to dig myself out of a big hole and this has set me back a bit!

GeorgeUK · 11 February 2009 at 12:13PM

You are quite right - one debt, one default.

Also check the default date as this should be the date on which payments were not made. Not when they issued the default.

I would contact one of the credit reference agencies and ask them why there are 2 defaults for a single debt. It is a breach of the Data Protection Act to hold incorrect information on you and should be remedied asap.

lkava5 · 11 February 2009 at 12:38PM

Thanks for your advice.

Miss_Marple_2 · 11 February 2009 at 1:36PM

Also, I believe that if they have no signed agreement, they do not therefore have your authority to share your information with credit reference agencies - and are committing an offence under the Data Protection laws

lkava5 · 11 February 2009 at 3:36PM

Thanks Miss Marple, that might be a useful line to add to my next letter to them!

Donedoingdebt · 11 February 2009 at 5:25PM

GeorgeUK wrote: »

Also check the default date as this should be the date on which payments were not made. Not when they issued the default.
Iquote]

GeorgeUK, are you sure this is correct?
I believe the default date starts on the same date as they issue you with a default notice.
This can be several months after your first breach of credit agreement.
Going back to the original question, only 1 default can be be served on any 1 account.

Miss_Marple_2 · 11 February 2009 at 6:36PM

lkava5 wrote: »

Thanks Miss Marple, that might be a useful line to add to my next letter to them!

I would like to take credit for it - but it was Fermi would mentioned it in another thread - so thanks to her.

I've added into my letter, so this should mean that as they can't register anything against me and they can't pass it on, this should allow me to pay it off in the way that I wanted to in the first place. Fingers crossed anyway - I'm still waiting to hear back. Am also keeping a close eye on my credit report to see if they register anything against me after the date I know they received my letter - heads will roll if they do

GeorgeUK · 11 February 2009 at 8:57PM

Donedoingdebt

Good news. We are both wrong.

I had tried researching the date issue some time ago and couldn't find any exact details. What i took exception to was if the original creditor did not issue a default and 5 years later a DCA did, the date of default should not be the date 5 years after the agreement had been broken (by not making the required contractual payments).

I have found it now - woohoo!
In short, accounts that are less than 3 months in arrears should not be defaulted and those who have had no payments for 6 months should. Therefore the maximum time that could be termed as the date of default is 6 months after scheduled payments ceased. If there had been correspondence stating that the original agreed payments would not be met or reduced, then it would be at this stage that the contract was broken and therefore the date of notification or first "missed" payment should be the default date. If before the 6 months of non-payment the creditor closes the account or passes the account to a DCA, then this would be the date of default.

I just made that sound really complicated didn't i?

The date of default
31 The date of default recorded on the file should be the date on which a decision to file a default becomes effective according to the criteria discussed in paragraphs 9 to 16. If a notice of intention to file a default is served (see paragraphs 32 to 37), the default date should be the date the notice becomes effective. When a default is filed after a genuine and agreed variation in payment schedule has broken down, it should record the date of that breakdown subject to the conditions described in paragraph 21.

http://www.ico.gov.uk/upload/documents/library/data_protection/detailed_specialist_guides/default_tgn_version_v3%20%20doc.pdf

Hopefully this explains it better. :rolleyes:

lkava5 · 25 March 2009 at 11:53AM

Hi I posted this thread regarding my defaults last month, I took every ones advice and am in the process of contacting the CRA and the DCa but today I hit a brick wall. I emailed check my file asking them for advice regarding removing one of the defaults. this was the reply I got

"Hi
Thanks for your message.

I`m afraid that when a debt is sold to a debt collector both lenders have a right to record the default. therefore these are not duplicate accounts and should show like this.

I hope this helps, if you have any further qustions please get back in touch.

Regards

checkmyfile "

Now I am super confused. Can anyone help?

RAS · 25 March 2009 at 12:01PM

Hi

Check my file are NOT the authority on this matter and they are not a credit reference agency.

Write to Experien, Equifax and Call credit. Which is recording the two defaults?

lkava5 · 25 March 2009 at 12:12PM

Hi

Thanks for your reply. I have written to all 3 CRA so hopefully they will respond soon. I only sent the email to check my file as I had a free trial with them and thought it couldn't hurt to email them as well. If they are giving the wrong inforamtion though it is pretty scary as they could be given the wrong information about other things.
I will wait for the response from the CRA's but if Check my file have given the wrong information I will be making a complaint!! Will keep the post updated.

Defaults and Defaults!!

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