Default Removal?

never-in-doubt wrote: »

Dear Sirs,

Account No: XXXXXXXX

After recently obtaining a copy of my Credit File from the Credit Reference Agencies, I am concerned to note that your company has placed a "Default Notice" against an alleged account I held with you. Further to this, I have no recollection of ever receiving such a notice, and I therefore require you to substantiate this data.

1. You must supply me with a true copy of the alleged agreement you refer to. This is my right under your obligation to supply a copy of the agreement under the legislation contained within s.77 - s.79 Consumer Credit Act 1974. Your obligation also extends to providing a statement of account. I enclose a £1 cheque to cover the statutory fee.

2. Please also supply me with a signed, true certified copy of the original default notice in line with s.87 & s.88 of the CCA(1974).

You are notified that you are obliged to supply these documents, whether you are the original creditor or not under s.189 of the CCA(1974). I request that this data is provided to me within the next 14 days. If you are unable to provide this data then I require all adverse information to be removed completely, including any defaults that may have been applied. Please note that mere correction or amendment to the entry will not be acceptable.

Yours faithfully



Sign digitally

never-in-doubt wrote: »

Dear Sirs,

Account No: XXXXXXXX

After recently obtaining a copy of my credit file from the credit agency, I was extremely concerned to note that you'd added a default notice against me on XX/XX/XXXX. I feel this default entry was not only added unlawfully but also without merit. Doing so has immediately put you liable to a breach of Consumer Credit Act 1974, in particular s.87(1) of said Act;

Section 87(1) of the 1974 Act allows the creditor to send you a default notice giving you fourteen days from the date you receive it to pay the arrears. The default notice must contain all of the necessary information under the Consumer Credit (Enforcement, Default and Termination Notices) Regulations 1983 ('the 1983 Regulations'), which includes;

• a statement saying the notice is a default notice served under section 87(1) of the 1974 Act
• a description of the agreement
• the name and address of both the debtor and the creditor
• details of the breach (i.e. late payment) and, if the breach can be remedied, the date by which it must be remedied or, if the breach is not capable of remedy, the amount required to be paid after the expiry of the specified date;

As is clearly evident from all previous communication between us regards to this default, I never received any such notice and as a result I contest the accuracy of the default and until such time you can provide proof that you complied with the above Act, you must remove all derogatory data from the files of any credit reference agency (CRA).

I am more than happy to issue you a Subject Access Request which should include a copy of the documents I request, which I am hopeful will include a copy of said termination and default notices which, if they are missing, will leave me no alternative but to seek legal enforcement via CPR31.16. Without sight of said default notice, I cannot argue the authenticity, enforceability or execution and therefore will use this as my claim if I am forced into taking legal action, all costs will also be claimed.

It would, however, be in both our interests if you simply agree to remove the default being there are so many inconsistencies with the alleged default notice, the execution, the enforceability and the legal compliance that you must surely have no other alternative but to remove it, least of all as a gesture of goodwill? As I was never in receipt of any of the statutory documents (Notice of Termination of Contract; Notice of Assignment or Default Notice) then the actual default notice that is shown on my credit file is unlawful and should be immediately removed. I do not want to take this through the courts but I will enforce removal by judgement if necessary, at the end of the day you have acted unlawfully by not issuing a fully compliant and correctly executed legal document. Therefore, assuming you are happy with my proposal please confirm, in writing on letterheaded paper, the following points will be carried out;

• The Default Notice will be removed
• The Status of the account will change from “Defaulted” to “Settled”
• The Current Balance will appear as £0.00
• The Default / Delinquent Balance will be set to £0.00
• There will be no date in the “Defaulted Date” field (as it will be removed)
• There will be no date in the “Date Last Delinquent” field on the report
• This will apply to all 3 Credit Reference Agencies, namely Experian, Equifax & Call Credit

Failure to agree will result in more formal papers being sent, by return and in the meantime, I look forward to your response within the next 21 days.

Yours faithfully




Sign digitally

JamesJones wrote: »

I don't know where these template letters came from but you should be aware that a lender does not need to issue a default notice before registering a 'default' on your credit report. You might want to read the Information Commissioner's guidance on filing defaults with the CRAs, if you want to understand the nitty gritty around this. You can find a copy on our website here:

To put it simply, you should be notified before a default is added to your credit report, but that can be in a number of different ways, for example a letter or account statement.

James
Experian

The new minimum period after which a creditor or owner may take action (in respect of the agreement after having issued a default notice) is now 14 days. It used to be only 7 days. s.14 CCA 2006 amends s.88 of the 1974 Act to create this extension.

Additionally, under s.87, a creditor or owner must give the debtor or hirer a default notice in the prescribed form if he wishes to:

- terminate the agreement;
- demand earlier payment of a sum;
- recover possession of any goods or land;
- treat any right conferred on the debtor or hirer by the agreement as terminated, restricted or deferred; or to
- enforce any security

s.88 is also amended to allow the Secretary of State to prescribe information in the default notice to include any matters relating to the agreement (e.g. information about whether the agreement includes a term providing for the charging of post-judgment interest).

oscar52 wrote: »

You wake up wrong side of bed Niddy or is it just the heat getting to you

Fergie76 wrote: »

I sent the 1st letter in post 4 to British Gas they have put a default on my Experian file, this is my only default (settled) from 3 years ago. TBH, I don't think I even defaulted on the account, I switched suppliers and I think I came to agreement to pay to pay outstanding balance. Can't remember to be honest.

I sent this on the 13 June, so over the 14 days I gave them to respond. I know they have received it as the cheque was cashed on the 23 June.

What's the best course of action?

Give them a few more days, send a hastener or phone them?

Cheers.