Unfair defaults and how to get rid of them ?

Ilikenoodles_2 · 23 June 2012 at 7:38AM

Hi there,

Im new to the forum and have seen some great advice being handed out to people.

I was hoping to get a little of the same.

First of all I took out some payday loans. I Know.. I know I dont need the pep talk BELEAVE ME ive learned my lesson.

OK so this is my problem

A while back like many here I fell on difficult financial times and turned to the greasy payday loan companys.

I got 2 loans.

1 for £90
1 for £300

Come payment day I obviously coulden't pay and the debt then started to rise and and again I couldent pay it
at the time I had a bank account with no overdraft facility

but my bank decided to pay the payday loan companies debit requests anyway and then charge me interest for my trouble :O!!!

I have since learned that this is due to continues payment authority. Or something like that.
But at the time of course I did not know that a continues payment authority existed and just assumed that my bank woulden't pay them

As a by product of my bank paying them I was now in more debt to the tune of over £400 with my bank. Aswell as still being in debt to the payday loan companies. thank you very much loyds TSB...

I asked the payday loan companies to give me more time but got absolutly no where

while all this was going on though I still thought my bank balance was zero i had no idea they had paid them and put me in more debt

*que the big black hole to swallow me up*

I just couldent pay anyone I had lost my job
(which is the reason I took the payday loan's out in the first place I thought I could get straight back to another job)

So due to all of the above and knowing that I couldent deal with it i just ignored it and hoped it would go away. Big mistake!

I now have 3 defaults on my credit report which is ofcourse affecting my life and that of my family

the 2 payday loan defaults I think are unfair as I did ask them for more time but im pretty sure there is nothing I can do about it short of

A) asking nicely for them to be removed as they are both under £500. (1 is £90 FML!)

Requesting proof of a final default notice and getting lucky.

I know their is not much hope of either of those happening

With the default from my bank I feel that it is deffinetly unfair as they paid the companies when I clearly did not have the means to pay and I had no overdraft facility.
Surely to god there is some way i can get this removed?

Anyway im in the process of trying to clean up my report ill do whatever it takes to get these defaults removed can someone please help me and tell me where to go from here? or what should be my next step.

Mara69 · 23 June 2012 at 8:19AM

You've got no chance of getting the defaults removed - because you did default. I am not sure you understand the concept of defaulting, which doesn't help. Even though you made an offer to the PDL companies and even if they had accepted it, you would still have received the defaults - because you defaulted. You failed to pay the amount you said you would pay on the date you said you would pay it. That is a default.

You also defaulted on your bank account - you gave the PDL companies authority to take the money from your account. It is not the bank's responsibility to monitor your account, watching over it like an elderly aunt, making sure you do not get into trouble. If you read the T&C's of your bank account there will be clear terms on failed direct debits etc and the charges for these.

I would suggest you take some time to learn some money management. In the meantime, these defaults will remain on your credit file for six years. Have you made arrangements with the PDL companies and your bank to repay the money you owe? Or are you clear with the PDL companies and just owe your bank now?

Apples2 · 23 June 2012 at 8:21AM

It was an unauthorised overdraft, these a very common.

Your credit file is a factual record of how you manage money so the defaults are correct. They won't be removed unless they are placed in error.

sadly you have neither right nor reason to have them removed.

Ilikenoodles_2 · 23 June 2012 at 8:46AM

Mara69 wrote: »

You've got no chance of getting the defaults removed - because you did default. I am not sure you understand the concept of defaulting, which doesn't help. Even though you made an offer to the PDL companies and even if they had accepted it, you would still have received the defaults - because you defaulted. You failed to pay the amount you said you would pay on the date you said you would pay it. That is a default.

You also defaulted on your bank account - you gave the PDL companies authority to take the money from your account. It is not the bank's responsibility to monitor your account, watching over it like an elderly aunt, making sure you do not get into trouble. If you read the T&C's of your bank account there will be clear terms on failed direct debits etc and the charges for these.

I would suggest you take some time to learn some money management. In the meantime, these defaults will remain on your credit file for six years. Have you made arrangements with the PDL companies and your bank to repay the money you owe? Or are you clear with the PDL companies and just owe your bank now?

Hi there,

I would say thank you for your reply but to be perfectly honest I did not come here to be chastised nor did I enjoy the tone of your reply.

I refer you to this as far as having defaults removed goes

(Im not allowed to post links so just google how to remove defaults learnmoney.co.uk)

The things I outlined above happened some time ago
I am well aware of the concept of a " default " thank you very much in fact I am clearly intimately acquainted with it...

Furthermore I feel your insinuations that a " continues payment authority " is common knowledge even now (never mind back when pay day loans first started being heavily marketed) foolish!

At this moment in time I bet if you asked 100 people on the street what it is 90 of them would say "I have no idea" back when these were taken out by myself 99 of them would have said it

it was little more than fine print in a very long and conveluted contract
No to mention the fact that these pay day loan companies although marketed as the fantastic friend you never knew you had are little more than loan sharks and should be fought on all fronts.

Also I may not have given off the impression in my question that I was financially responsible but I can assure you since all of this has happened I am

I am not a child and I do not need to be sent away like a naughty boy ("to learn some money management")

I came here for help not a slap on the wrist...

(If you are here to do nothing more than tell people how naughty they have been then please leave my thread and do not return)

Apples2 wrote: »

It was an unauthorised overdraft, these a very common.

Your credit file is a factual record of how you manage money so the defaults are correct. They won't be removed unless they are placed in error.

sadly you have neither right nor reason to have them removed.

Hi Apples2,
Thank you for your reply.

I am aware of an unautherised overdraft but to be honest with you I would feel that giving an un-autherised overdraft to such a large amount on an account not autherised for one the clue is in the name. (they are normaly very small amounts for a check that goes a small amount over your balance I beleave??) And then charging you interest for it is sharp practice.

my bank must have been well aware what this would cause

Allthough I guess technicaly you are correct to the letter of the law but it isent a bludgeon to be wielded like a warhammer and injustice does happen under the law

I think I have identified some said injustice

I did say I dident think I couldent get away with the pay day loans and yes if we are being technical nor should I

But the bank default is wrong.

opinions4u · 23 June 2012 at 8:52AM

Sometimes replies are given for other readers to understand the consequences of actions taken by others.

You messed up and as a result your credit file is impacted for a long time.

You can moan about sharp practice and injustice. Or the tone of a reply you don't like.

But when borrowing money you should repay it on time. If you don't, there are consequences.

When giving your card details to authorise payment, expect payment to be collected.

When authorising payments against your bank account, don't be surprised if your bank chooses to pay them.

Ilikenoodles_2 · 23 June 2012 at 8:58AM

opinions4u wrote: »

Sometimes replies are given for other readers to understand the consequences of actions taken by others.

I see,

Here was me thinking this forum was for advice.

Clearly I was wrong its here to chastise people and tell them they have been naughty then make sure they are aware of the consequences of their actions.

Are you kidding me? as if we dont already live in enough of a nanny society Christ on his throne...

I mean who do you people think you are exactly? cos im certain none of you are my mother and father I dident need to be told what I did was wrong I needed advice
and so far all I have gotten is "Go and learn some money managment" ill go somewhere else for help

wow I clearly got this place wrong...

YorkshireBoy · 23 June 2012 at 9:00AM

The term "default" can mean different things. For example, if I don't pay you money I owe you I may be said to be in default of the agreement T&Cs.

However, you need to clarify what you mean by "default". Have you checked your credit files (Experian et al) and seen the account(s) listed as being in default?

Re the LTSB issue, you were well aware (or should have been if you'd read your account T&Cs) that if you made a request for an 'informal overdraft' there was a chance you'd be granted it.

Re the LTSB charges incurred (£400 can't all be interest as your OP infers), you may wish to explore claiming them back using the 'hardship' route. Be warned though that they'll probably go through your statements looking for 'frivolous' spending on non-essentials. If they find any such spending that will weaken your case.

Mara69 · 23 June 2012 at 9:00AM

Ilikenoodles wrote: »

I would say thank you for your reply but to be perfectly honest I did not come here to be chastised nor did I enjoy the tone of your reply.

Frankly, I don't need your thanks and care not one jot that you did not enjoy the tone of my reply. Post on an internet forum and you are going to get diverse responses.

Ilikenoodles wrote: »

At this moment in time I bet if you asked 100 people on the street what it is 90 of them would say "I have no idea" back when these were taken out by myself 99 of them would have said it

Maybe, maybe not, but this is not Family Fortunes and therefore that point was completely, well, pointless. People that default are rarely honest enough to admit their mistakes and accept the consequences of their actions. You don't want to accept the consequences of having defaulted and are trying to wriggle out of the default. Happens all the time in my job.

Ilikenoodles wrote: »

If you are here to do nothing more than tell people how naughty they have been then please leave my thread and do not return

I can post on what I like when I like. Especially when it is clear you are still wrong. If you don't like my posts, put me on ignore.

Ilikenoodles wrote: »

I am aware of an unautherised overdraft but to be honest with you I would feel that giving an un-autherised overdraft to such a large amount on an account not autherised for one the clue is in the name. (they are normaly very small amounts for a check that goes a small amount over your balance I beleave??) And then charging you interest for it is sharp practice.

Have you read the T&C's of your account yet?

Ilikenoodles wrote: »

But the bank default is wrong.

No it is not. You defaulted on your account. If you think you have some evidence of shady practice by the bank, then wrote to them, when you get no joy, write to the FOS.

Ilikenoodles wrote: »

Here was me thinking this forum was for advice.

Fact is, you've had advice. Good advice. You simply don't like hearing it. Fair enough. There will be some posters pop up who will claim you can get the defaults overturned and that none of this is your fault. You are perfectly entitled to cherry pick what advice you want to take. You'll be wasting your time, but hey! It is your time to waste.

Ilikenoodles_2 · 23 June 2012 at 9:00AM

Do you get some sort of sick satisfaction or superiority out of telling people how wrong they are and then telling them how it SHOULD have been done?

Lol what the hell is wrong with you people...

Ilikenoodles_2 · 23 June 2012 at 9:04AM

YorkshireBoy wrote: »

The term "default" can mean different things. For example, if I don't pay you money I owe you I may be said to be in default of the agreement T&Cs.

However, you need to clarify what you mean by "default". Have you checked your credit files (Experian et al) and seen the account(s) listed as being in default?

Re the LTSB issue, you were well aware (or should have been if you'd read your account T&Cs) that if you made a request for an 'informal overdraft' there was a chance you'd be granted it.

Re the LTSB charges incurred (£400 can't all be interest as your OP infers), you may wish to explore claiming them back using the 'hardship' route. Be warned though that they'll probably go through your statements looking for 'frivolous' spending on non-essentials. If they find any such spending that will weaken your case.

yes I did not pay the amount and therefore defaulted I have of course paid the outstanding balance now to all parties.

I checked my report on Experian most of the £400 is what they paid to the loan companies and the rest is interest

I dont want any of the money back I just want the default from the bank removed clearly they shouldent have done it as it is poor practice i mean how can anyone not be able to see that it is poor/sharp practice and only done to push someone deeper in to debt and then make money off of it, its disgusting.

BugsyBrowne · 23 June 2012 at 9:05AM

Sometimes I understand if someone has defaulted on 10k debt and ran into problems as the interest may of been difficult to pay but wrecking your credit report for 6 years because of 2 lousy payments under £500 is guttering to say the least.

Unfair defaults and how to get rid of them ?

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