How to get back on the credit ladder

Well here we go again, I am not confident at all now that I have received such a letter from Capital One. I think it’s a case of I will need to wait until the default simply drops off my CRA’s .

This is a copy of the letter they sent me, I have re-typed it word for word and only XXX personal information from the letter for obvious reasons.

9th July 2009

Dear Marcellep

Account Number 1234567890

Thank you for your continued communication regarding your account.

To begin with, I would like to make it clear that we do not intend to continue with protracted correspondence with you regarding the removal of your default notice.

I would also like to make it clear that we are in no doubt that the default noticed was issued to you on the 12th May 2005 was produced correctly and therefore there is no dispute on your account regarding this matter.

You opened your account in October 2002 when you signed and returned the terms and conditions of your credit agreement to us. You then continued to operate your account in accordance with these terms and conditions for approximately two and a half years.

You continued to make purchases with your card until March 2005 and made payments to us until June 2005. The continued use of your card and your sustained period of making payments highlights your consent and clearly illustrates that you were operating your account on the basis of an agreement between yourself and capital one bank Europe plc.

Your outstanding balance is currently £385.77

With regards to your request to supply you with a copy of your default notice, as Kelly and Steve advised you in their previous letters, we are not officially obliged to provide you with a copy of the formal default notice. However, I have enclosed a copy of the notes which appeared on your account between the 13th April and the 12th May 2005. I highlight notes on the 13th April 2005 were you refuse to pay unless we stop apply fee’s. You also advised you would go to citizen advice bureau.

On the same day, we advised you that a default notice would possibly be issued. This was because of your heavy spending in March 2005 caused your account balance to reach £392.12. This equates to almost twice the amount of your agreed credit limit of £200.

In fact, as Kelly advised you in her letter dated the 4th June 2009, and I have highlighted on your enclosed notes, a default was issued on the 22nd April to request you pay the over limit amount. Because you did not pay the over limit amount, a statement of default was issued on the 12th May 2005 for £440.88. The default letters were sent to your address we held on file for you at that time. Please be aware, it is your responsibility to ensure we have the correct address on file for you.

You telephone in on the 19th May 2005 and spoke to Debitas Legal Services, our in house debt collection agency. You advised Debitas you were able to pay £50. Debitas advised you they would offer you an interest free payment plan to clear the default amount of £440.88. You agreed with Debitas, to an eight month payment plan of £55.11 each month. You made one payment of £55.11 with your debit card on the 19th May 2005. However, you broke the other seven payment agreements and that was the last payment we received from you.

Therefore, as Kelly and Steve both explained in their letters, we are not able to remove the default from your credit file as it was applied correctly.
You mentioned also section 10 of the Data Protection Act 1998. To explain under the DPA 1998 individuals have the right to ask an organisation to stop processing their personal data on the grounds that:

• ·The processing is causing or is likely to cause substantial damage or distress; and
• ·The damage or distress is, or would be, unwarranted

You have failed to set out in your letter precisely which processing you object to and why you believe it is causing, or will cause you, unwarranted and substantial damage or distress. Capital one has not undertaken any processing of your data, which has to our knowledge caused, or is likely to have caused, substantial unwarranted damage or distress.

In any event, you’re not entitled to serve a notice under section 10 of the DPA for the following reasons:

• ·Capital One informed you when you applied for your credit card and in the terms of your agreement how your data would be processed and you consented to the processing of your data by signing your credit agreement.
• ·The processing of your data is necessary for the legitimate interests of Capital One and the credit reference and fraud prevention agencies to which is disclosed and is not likely to prejudice your legitimate rights, freedoms or interests.

The information commissioner has confirmed that it is appropriate for lenders to share information about customers account with CRA’s and that it is appropriate for the CRA’s to retain this data for six years after the account was last active.
Your notice is entirely unjustified and inappropriate and as a result, Capital one is unable to comply with it.

Capital one believes also they are fully compliant with the Consumer credit act, the office of fair trading guidelines, the consumer protection from unfair trading regulations 2008 and all the consumer credit regulations 1983. I also believe that you received a separate response to your S78 query as you advised when you telephoned Karon Bullock on the 3rd July 2009.

If you’re still unhappy with the way your complaint has been handled, I strongly recommend that you contact the financial ombudsman service which is a free and impartial organisation which exists to mediate in disputes between customers and financial service companies. Their contact details are in our complaints leaflet which I have enclosed for you.

Yours sincerely

Patricia L Chadwick

Also within the letter I have a screen shots which says "Default sent" and a copy of 2mths statements.



So there you go thats the letter, What do I do from here?