Need to have Sainsbury's default removed (debt is settled)

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I need to get a default removed as it is impacting my credibility to get a job. I usually work in the Financial Services Sector, on a contract basis. So credit checks are the norm there but they have a restricted their conditions recently. So despite working in this bank for 5 years on previous occasions, the offer of a 10 week contract was withdrawn last month, because of a credit check failure. This has been detrimental for myself and my family as I am now without a job.
The credit check failed because of a default placed by Sainsbury's Bank 3 years ago. This happened soon after my husband was taken ill and had to go through treatments for 6 months. His employers did not provide any sick pay, so we hit a financial low.
We had been paying the minimum contractual payments so far, however, when a Debt Management Company approached us and said they could help us out with the credit cards payments, we agreed. They put us on a DMP with all our credit card lenders in February 2012. They also advised not to have contact with the credit card lenders. All the lenders agreed to the arrangement.
The DMC missed the March 2012 payment and paid a token payment for April 2012, as they were slow in the process of setting up the DMP, but they also missed a payment in July 2012.
This instigated Sainsbury’s to write threatening letters, notices of bailiffs and harassing calls. Then they applied the default without notifying us.
By November 2012, I had changed jobs and my husband had resumed full time work, so we were able to make partial settlements with some of the credit cards, though I still had to sell some jewellery and borrow from family. The cards I settled had sent default notices but didn't apply a default as I settled the debt within the 28 days of the notice.
I also partially settled with Sainsbury's Bank but because they had passed on the debt to Blair, Oliver & Scott and then Wescot, it took longer to sort out and pay off. I paid this off by the end of February 2013.
They refused to remove the default despite contacting them many times in the last three years, via phone and email. They still send me statements every 6 months to say I am in arrears, and I need to pay them, even though Wescot said I would not be pursued by Sainsbury’s for the remaining amount. No other lender does this.
Since I have no job at the moment I have had more time to look into the credit file held by all 3 CRAs. I have been reading the posts on this forum and looking at the Guidance for Defaults by the ICO.
I don’t think they have complied with the principles and guidance given in these documents issued by the Information Commissioners Office.
According to this, there are many inconsistencies in the way the Sainsbury’s Bank dealt with my situation.
When I look into the credit files, there are so many anomalies, I’m confused as to why they are recorded this way. The balances are not consistent between Equifax and Callcredit and only Barclaycard recorded this as “Arrangement to Pay” on my credit file.

As the Customer Relations team were refusing to accept my request, I emailed the CEO with my grievances which were:
When an agreement for reduced payments set up in April 2012, why was the debt was passed to Wescot, 2 months later?
Why wasn’t an intention to default or default notice not sent?
Why way the default was applied too early?
Why do I get an arrears statement every 6 months?
However the Executive Complaints team passed this back to the Customer Relations team.
A lady called me from this team, this Wednesday, to say they still refuse to remove the default.
The reasons do not add up and are basically excuses to cover up their aggressive and rushed actions.

She said the default added was because the missed/reduced payments that add up to 4 contractual payments – this is incorrect. How can one missed payments and one low payment add up to that? Also the purpose of a Debt Management Plan is to prevent a default as reduced payments should be registered as Agreed Payments, but this was not applied on my credit file. Only one lender showed this.
She advised that they do not have a copy of the Default Notice but she could send a Template out.
How is that possible? I have all the letters sent to me by Sainsbury’s Bank, but they don’t. Also why wasn’t an Intention to Default sent out first? Why does Sainsbury’s Bank say they have issued a Default Notice when they have no record of it? They already said in a letter that there was no Default Notice, just a default was applied.

She accepted that they don’t even have the original agreement.
Isn't this a breach of the Data Protection Act then?

She ended the conversation that she could give me £100 compensation, which I refused, and that she would pass her report on to the Executive Office who would then write to me.

I just need some advice. Should I contact the Executive Complaints Team again?

I don’t understand what to do. I have written to the ICO but have had no response yet.

Comments

  • Ben8282
    Ben8282 Posts: 4,821 Forumite
    Combo Breaker First Post Newshound!
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    The situation was not helped by your stopping your minimum payments to the presumably then undefaulted Sainsburys credit card and signing up with this debt management company. What exactly did you expect from them? By the time they have made their own profit how can you have imagined you would have been paying less than your existing payments?
    If you were put on a DMP in relation to ALL your credit cards 3 years ago that would have more or less trashed your credit score anyway.
    Also having been put on the DMP why did you then contact the original creditors and make payments to them outside the DMP? this makes no sense to me.
    It would appear that this debt management company, not Sainsburys, are the cause of your problems.
    The default will drop off after 6 years. Nothing you can do about that except that if it is really settled it will show as such.
  • raknah
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    I agree the situation was not helped by stopping payments but I was not in control at the time, and I only knew about the DMC's actions after the lenders sent letters.
    It's not that I had left it all to the DMC, I kept asking them why there were delays and why they weren't dealing with the agreements. I only understood that there was a default and the impact of the default when my employer did a credit check, and then threatened that the employment could be terminated.
    The DMC went into liquidation by January 2013, hence I have not been able to pursue them.
    However, other lenders under the same DMP did not take action as fast as Sainsbury's did. MBNA actually sent a notice 6 months after the reduced payments and Barclaycard were even more helpful by giving me time to resume contractual payments. MBNA agreed to settlements quite swiftly but Sainsbury's Bank passed me to different companies and finally agreed to a settlement in January 2013.

    They have recorded information incorrectly and with differences with the three CRAs.
    They have not responded to the dispute I have raised with Callcredit.

    The response from their Executive Complaints team is that they do not agree with removing the default but they have misrepresented information on my file.
  • rus4r
    rus4r Posts: 11 Forumite
    First Post First Anniversary Combo Breaker
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    Phone the financial ombudsman an discuss your complaint theyll tell you whether you can raise as a complaint with them.

    DSAR the DMC & Sainsburys bank also find out if it was linked to HBOS when you took out loan.
    this should give some more info an help you clarify what went on. They should have a copy of the loan agreement to send out to you if they do not then it could help in your favour. Thisll take 40 days to do info is on ICO website.
    Did you partially settle with Westcott with some loan monies outstanding?
    You can write to each CRA an dispute the default to see if it can be removed but normally you will need agreement of the lender also.
    Personally I feel you will probably be entitled to compensation but is unlikely your default will be removed unless there is a mistake they agree to amending.
  • raknah
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    Thank you for your response rus4r.
    Sainsbury's was linked to HBOS even then.
    A SAR had already been requested which showed that they hadn't kept any agreements or letters. They didn't even keep proof of the Default Notice. Just said they could provide templates.
    I went to the ICO and they couldn't help but referred me to FSA.
    I wrote to one CRA to dispute this and they raised this with Sainsbury's. The result was that since Sainsbury's did not reply, CRA removed the disputed loan from the list of credit taken.

    I did partially settle with Westcott and they were very difficult to deal with. What upsets me is that they continue to show the residual amount as if it is owed even though they confirmed this would not be pursued.

    They gave £300 as compensation for mistakes made on my credit files and said they would correct them but I have not seen any changes.

    I will call the FSA and discuss it with them. Thanks for your advice.
  • Westminster
    Westminster Posts: 1,004 Forumite
    First Post First Anniversary Savvy Shopper! Debt-free and Proud!
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    You are getting tied up in the details.

    As soon as you go down the road of a DMP then you are opening yourself up to default as you are no longer making the contracted payments.

    The why's and wherefore's about dates, copies of default notices etc, may get you a little compensation.

    It is the purpose of CRA files to accurately report the conduct of an account - and your relationship broke down as soon as you stopped paying your minimum payments.

    Also a good (and common repetition) lesson learned - to NEVER use a fee-paying debt management company. One of the free debt charities would have explained the impact of a DMP (ie default) and it would have been then down to you to decide if it was worth the impact on your career in financial services.
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