please help....advice about a default..first time poster

RAS

That is why I suggest leaving it a few weeks. personally, I would even leave it 6 weeks if you can.

sparklymunky24

HI that is brilliant, thankyou very much, I'll leave it 6 weeks then send them the letter. The company was a debt collecting agency passed to them by Next directory

My only concern now is that what if their records do show they posted me a letter? i honestly never received anything?

sparklymunky24

hi
i have contacted the debt agency to get their address to write to them about the default as stated below but was told that they were only acting on behalf of next directory and its them i need to speak to as they but a default on my credit file

I have spoken to next who advise they will not remove the default and have recorded it as a default goneaway due to me changing address. I advised i never had anything from them about defaults and only letter i had was about the arrears. Thhey advise they cannot check if a letter was sent as my info has been archived due to me closing the account. I did tell them i changed address when i contacted them about the arrears (originally wrote them a letter advising my change of address but they say they never got it. Even now after at least 3 calls of giving my new address they still only have my old address on record and the lady i spoke to says she isn;t disputing i called and updated info but there isnothing she can do about it) i never knew they passed me to a debt collecting agency until i called them about the arrears which they said i needed to go through the agency to sort out, which i did and paid the full outstanding balance in 2 payments. I advised that surely my report should show the arrears and not a default but they told me they always put a default on the report as soon as it is passed to the agency

what can i do now? i am entitled to have this change or do i have to suffer with it for the next 6 years?

Sorry for the long post but you have been really helpful and i dont know what else to do now?

Thannkyou

sparklymunky24

hi
please can anybody help me? im going mad with worry at the moment
sorry if im being impatient i just dont know what to do next

RAS

You need to do two things then

1. raise a formal complaint with Next re the fact that despite informing them of your new address they have not altered their system.

2. Do the SAR as above.

if you are lucky, you will be able to complain to the FSA and IO re their handling of the account and get the default removed. Be aware though that this is a rare outcome.

sparklymunky24

hi
i have done number 1 with next and they advise they never got the letter and i sent them originally stating my new address. i did inform them that when i spoke to them about the arrears i gave them my new address and also during 3 phone calls since, there answer was there is they aren't saying i haven't given them the address just that it not on their records. is this not addmission that they aren't updating their records? think i might contact the ccredit agency too and ask them to act upon my behalf but it looks like im gonna be stuck with the default

RAS

A formal complaint requires you to write formally to the creditor, send registered post, then you can trace their receipt of the letter. They the send a copy of the formal compalint system and reject your complaint.

THEN you can ask the FO and IO to look at your case. It seems that you may have a case since they failed to update their records.

if you rush around like a bull in a china shop, you will not acheive anything.

The credit agency are not going to act on your behalf.

sparklymunky24

hi
thanks for your advice, i'll send them the letter you wrote yesterday and take it from there. apologies if i seem to be getting ahead of myself im just panicking and barely slept a wink last night due to all the worrying

Thankyou again for all your help.

fermi

May be helpful:

From: Technical Guidance Note - Filing defaults with credit reference agencies

Notices of intention to file a default

32 Lenders should tell their customers about filing information with a credit reference agency as part of the account opening procedure, in line with the requirements of the ‘fair processing code’ 4 . This explanation will not normally refer explicitly to defaults and will often be distant from the events which cause them. Therefore we strongly recommend that a notice of the intention to file a default should be served. Many lenders now subscribe to trade association codes of practice which require this.
This practice helps the transparency of the credit reference process and may even prompt payment, so avoiding the need to file a default at all.

33 Notices to comply with Sections 13.7 of the Banking Code 5 and 7.5 of the Lending Code 6 should provide adequate warning. A notice of intention to file a default can be sent with a formal default notice served under Section 87 of the Consumer Credit Act 1974. Where lenders are not required to issue these notices, they can send an intention to file a default through a final demand, letter or relevant account statement, which should make clear not only the intention to file but also the date of the intended default. The date should allow the customer enough time to respond properly. Lenders who have to provide a notice of intention to file a default under a relevant code of practice should be aware that not complying with the code may be taken into account in any assessment of the fairness of their processing.

34 When a default occurs in line with the criteria in this guidance, and the lender has given the customer 28 days notice of the intention to file a default, then subject to paragraph 37, the lender may supply this information to a credit reference agency despite no advance warning when the account was opened.

35 It may not be necessary to serve a notice on all occasions. We acce there are cases when there should be no doubt over a default, for example, cases:

• involving fraud;
• where the lender has been notified under the terms of a bankruptcy or IVA;
• where there has been successful court action or repossession; or
• where a customer has made no attempt to resolve their arrears.

36 We do not believe that on its own a notice of intention to file a default amounts to harassing the debtor. We accept that lenders need to take care in the wording and use of notices to avoid the possibility of harassment.

37 If a borrower fully meets the terms set out in a notice of intention to file a default, it follows that the lender should not file the default.

Time framework

Although there will be some flexibility in the definition of a breakdown, we believe there should be general rules for the minimum period of arrears which should exist before a default can be filed. Equally there should be a maximum period after which, if anything is to be recorded with a credit reference agency, a default must be filed. The following are in line with the practices currently adopted by most lenders.

• Accounts should not be routinely filed as being in default where full payments or those due under a rescheduled agreement are fewer than three consecutive months in arrears.
• Accounts should normally be filed as being in default where those payments due have not been received for six months.

This time framework only relates to filing defaults. It does not affect the lenders’ ability to continue to report accurately on the extent of arrears using monthly status codes. We recognise that may not always be appropriate for products which advance credit over either a very short or very long-term.

Merlinexcalibur

Hi, Sparkylmonkey, just got back in and saw you'd PM'd me earlier. Asking for my help. Please don't misunderstand me but it's better you get help on the main forum from other people.
Which I now seen you've got.