how to remove default sums notice? help!

wishing4amoneytree

Hi everyone, im sure this has been asked before but the info I have found doesnt match my situation. So here is my situation!

MBNA card - I went over my credit limit simply by getting a 'late payment' fee which made me just over my limit which meant they added a 'over limit' fee aswell...I had just set up a direct debit to make the minimum each month and it must have caused a delay. I didnt open my statements as I just thought the balance was unchanged and I was paying it every month on time! Then I got a letter saying 'defaut sums notice' and when I checked the statement I was now £113 over my limit just from charges adding up. ( I had paid the minimum payment every month without fail and they seemed to be quite happily just taking the minimum) but I noticed my statements have attached to them a sheet that says 'this statement is also you notice of default sums'

So I have paid the £113 in full and brought it back inline with the credit limit but I have heard these 'notices' last 6 years and are terrible on your credit file?? I have looked into how to get it removed and all the advice is based on claiming that you never recieved the original notice but I cannot do that when it is included in my statement can I? they have been sending me the notice in with my statement for months!!! any ideas how I can get it removed?? Pleeeeaaaassseee help! I have NO other ccj's or defaults ever in my life! and yet now I cant even apply for credit!

wishing4amoneytree

im guessing there is no way then??? :-(

dolally_2

Are you sure you received an actual default notice or is it a standard charge letter which I believe they have now reworded. Not sure what they say exactly but am sure that default sum is in it somewhere.

Your recent activity will be recorded on the credit file (late payments etc) but these will come off in 3 years providing the account remains open.

Sammy_Girl

You need to check your credit reports to see what if anything they have marked your file with. You can get a free Experian and Equifax online report using their free 30 days trial - just remember to cancel before the 30 days expired!

If the default is genuine, then I would suggest a politely worded, grovelling letter to MBNA for the removal of the default. I made a late payment a few months ago and they charged me, and I called up to apologise and explained my mistake (changed banks - dd not changed in time) and they refunded the charge no problem. The key is to be nice and humble and not g in all guns blazing, as in past experience, that has go me nowhere!

Good luck!

CLAPTON

have you actually checked your credit files to see what's on them.

cifpower

When I was late with a DD to my credit card (didn't set up in time) I received a letter headed "Default Notice". This informed me I would be charged £12 but my account was not placed into default with the credit reference agencies.

nobbylad

Due to recent changes, companies now refer to late payment fees etc as Default Sums.

These are not default notices as in the ones you receive if you are +3 mnths without payment or fail to adhere to a repayment schedule, which DO affect your credit file.

If you're unsure, call the company and ask them to explain the wording.

I have spoken to 3 different lenders who have all confirmed it's a wording change, some are even using the terms, 'notice of default' or 'default sum notice'....these are not necessarily default notices.

Hope this helps.

sshine123

i have got a default notice on my credit file from barclays bank this is because i did not pay the bank charges they where demanding off me. eventually they passed the debt to a collection agency who hounded me for nearly a year until i paid the charges off.when i checked my credit file i noticed that they had said i had defaulted for 9 months in a row apart from this my credit report would be in good shape. does anybody know if i claim my bank charges back off barclays bank can i make them remove the default notice as if i get the charges back it must mean i didnt really owe them any money in the first place. this has caused me quiet a few problems when i tried to open another account or apply for credit. also abbey bank did 3 credit searches on me recently for one mortgage application because they kept spelling my name wrong on the application.
has anyone got any advice ?

~Brock~

nobbylad wrote: »

Due to recent changes, companies now refer to late payment fees etc as Default Sums.

These are not default notices as in the ones you receive if you are +3 mnths without payment or fail to adhere to a repayment schedule, which DO affect your credit file.

If you're unsure, call the company and ask them to explain the wording.

I have spoken to 3 different lenders who have all confirmed it's a wording change, some are even using the terms, 'notice of default' or 'default sum notice'....these are not necessarily default notices.

Hope this helps.

This is quite correct.

The Consumer Credit (Information Requirements) Regulations 2007 came into force on 1st October 2008. From that date, any charges applied to a credit card or loan account must be notified in writing within 35 days.

Unfortunately the government, in their undoubted wisdom, decided to insist that these charges are described as 'Default Sums', and that the letter sent must be called a 'Default Sum Notice' despite the pretty obvious assumption that many people would confuse this with a 'Default Notice', and therefore think that their credit records will have a default marked against them.

So to the OP - don't worry about this - get your account under its limit, open your statements when they arrive in future and you will be fine

Hippocampus

sshine123 wrote: »

i have got a default notice on my credit file from barclays bank this is because i did not pay the bank charges they where demanding off me. eventually they passed the debt to a collection agency who hounded me for nearly a year until i paid the charges off.when i checked my credit file i noticed that they had said i had defaulted for 9 months in a row apart from this my credit report would be in good shape. does anybody know if i claim my bank charges back off barclays bank can i make them remove the default notice as if i get the charges back it must mean i didnt really owe them any money in the first place. this has caused me quiet a few problems when i tried to open another account or apply for credit. also abbey bank did 3 credit searches on me recently for one mortgage application because they kept spelling my name wrong on the application.
has anyone got any advice ?

Once you successfully claim your charges back, simply tell them to remove the default notice. This will be easier to do if you get your charges back AFTER the banks' appeal fails and they end up having to refund you other than by way of a "goodwill gesture", as your charges will then be genuinely unlawful.

If they fail to comply, report the matter to the Information Commisioner's Office, as the data they are reporting will be innacurate at the very least.

In a similar situation to you, I just fought the bank's solicitors, who had to return the matter back to RBS. RBS eventually wrote off the charges, and removed all adverse markers from my credit files. Mind you, I flat out refused to pay them the charges in the first place, so didn't have to try to reclaim them.

So it is worthwhile being persistent.

exel1966

Hippocampus wrote: »

Once you successfully claim your charges back, simply tell them to remove the default notice. This will be easier to do if you get your charges back AFTER the banks' appeal fails and they end up having to refund you other than by way of a "goodwill gesture", as your charges will then be genuinely unlawful.

If they fail to comply, report the matter to the Information Commisioner's Office, as the data they are reporting will be innacurate at the very least.

In a similar situation to you, I just fought the bank's solicitors, who had to return the matter back to RBS. RBS eventually wrote off the charges, and removed all adverse markers from my credit files. Mind you, I flat out refused to pay them the charges in the first place, so didn't have to try to reclaim them.

So it is worthwhile being persistent.

You cannot remove late payment markers or default notices if they have been put there correctly which they appear to have been done. Debts were not paid for 9 months and the use of a DCA was required to collect the monies.
Bank charges are still a very grey area and until the law is defined, charges should be paid (if a request to remove them has failed) and then claimed back at a later stage otherwise you'll find yourself with big problems just as this poster did. I would say that not paying is a very risky strategy to use.