First Direct Bank Account - Default

webbo1981

DesG wrote: »

You will have a default that should be marked as settled, although if FD registered the default, they would have to mark it as settled. This will stay on your credit file for 6 years from the date of default and then it will automatically fall off.

So until 27/2/2013 you will have difficulties with prime credit.

You didn't really explain how you got the default, were you overdrawn without authorisation or something?

Cheers, Des.

I was banking with FD, paying in wages etc and had an Overdraft of £500 with them.
I changed my account in which I paid my wages into.
However in all honesty I never cleared the £500 overdraft I owed straight away. I then got letters from an agency saying they wanted the money so I paid up. It was clearly my own fault, I was just being lazy and never got round to paying it until the letter from the agency come

DesG

So, who registered the default on your credit file?


I assume FD told you they were removing your overdraft and you ignored them?

Cheers, Des.

webbo1981

DesG wrote: »

So, who registered the default on your credit file?


I assume FD told you they were removing your overdraft and you ignored them?

Cheers, Des.

From what I can work out from the letter it's....Metropolitan Collection Services

I would have to admit and say yes that must of been the case...I ignored them

never-in-doubt

webbo1981 wrote: »

Fortunately I owe them nothing...phew!!!

Just received a letter with the following:

"A Default Notice will have been registered with the Credit Reference Agencies when your account was referred to an external Debt Collection Agency as you had breached the terms and conditions of our agreement"
(Fair dos I guess)

"As the balance was repaid via Metropolitan Collection Services (MCS) I have requested that they update their details with the Credit Reference Agencies to reflect this information"

Any ideas on what will exactly happen on my creidt report?

Many thanks all for your replies

Contrary to other suggestions on here, a default must only remain for the maximum permitted period of time. This does happen to be 6 years however it could be sooner if you paid the debt earlier than the default date.

Lets rewind to make it easier for you to understand;

1 A default is registered for 6yrs
2. Statute Barred means the data must be removed 6yrs since last payment

Personally, i'd be looking to see when you last made a payment to the DCA - this date (hopefully) will be earlier than the default date which means the default may be removed sooner.

However, after reading some more - i'd also suggest you immediately send a letter in dispute to FD and the CRA which will render them unable to register a default until the account query has been dealt. On a side issue, who registered the default - this is important, was it FD or was it the DCA?

For clarity, a DCA cannot register a default (It has to be an absolute assignment, ie. they purchased the debt and are not just collecting it, for the DCA to commence any legal action on their own) - so worth asking for a copy of your CCA whic would include any assignment proof of ownership. Remember that DCA's are dodgy and break laws and forge signatures so never ever sign anything you send to them in your real signature. It avoids the copy/paste facility on photoshop..... Remember there can only be one default registered for one debt, if the original default was incorrectly placed then another can never be added. More on this if needed at later stage, if required.

You realise if they cannot produce a CCA/Proof of Absolute Assignment then technically, you wouldn't have a default because the debt is unenforceable? For details of this process and CCA request etc see my other thread here: http://forums.moneysavingexpert.com/showthread.html?t=1612055