DMP & Mutual Support Thread - Part 11

Ellieseleven wrote: »

No Sourcrates, they have not sent me a default notice nor any correspondence to say this was happening (I only know from checking my SC account). I asked the person on the phone at BC why they had sold on the debt but not defaulted me. His answer was that AR markers are better than defaults. When I explained the AR markers are damaging my credit file as they will remain there longer and a default would have been about to drop off, he still insisted an AR marker was better and tried to make out selling on the account is a good thing as we can settle at a reduced rate (I said I didn't want a partially settled marker on my credit file either).


Basically, I was getting nowhere on the phone so will pursue in writing and see if that works.


Thanks for your replies


Ellie x

You will find the call handlers at Barclaycard, or any other credit card company, will have little knowledge of the law surrounding such matters.
It's the compliance depts job to make sure the company complies with legislation, but they don't always get it right, or they just make there own rules until someone takes them to task over it.

You could refuse to pay Link, and also tell them why you refuse to pay, it could result in the return of the account to BC, or they could choose to make a comercial decision and write off the debt, that is not guaranteed of course, but makes for an interesting situation.

The fact remains BC sold on a debt without first defaulting you, or providing you with written notice of the default or the sale.

Well into the territory of schoolboy errors.

This is what the law says :

...........................................................................................
S.87 (1) of the CCA1974

S.87 Need for default notice
(1) Service of a notice on the debtor or hirer in accordance with section 88 (a “default notice”) is necessary before the creditor or owner can become entitled, by reason of any breach by the debtor or hirer of a regulated agreement,—

(a) to terminate the agreement, or

(b) to demand earlier payment of any sum
.............................................................................................

So, in order to sell on the debt, the original agreement must first be terminated.