Advice on possibly removing a default notice from account

digitalphase

I opened a Marbles credit card account in 2004 at some point, but due to originally poor management of my finances I had charges applied. However I was out of a regular job and as a student I found myself unable to pay any more money towards the balance as the interest and charges alone amounted to too high an amount for me to manage.

My account was passed to another company - CapQuest - in approx. November 2008. I was making regular payments to them, despite still being in financial difficulty but realised the importance of getting this settled. I did not get any formal letter informing me my account was going to CapQuest, I just remember getting a nasty letter saying I had to make payments.

Anyway, I discovered this website and learned about claiming back credit card charges and set the ball in motion with Martin's template letters.

I should mention here that upon checking my credit file in June 2008 no mention was made of Marbles/HFC/HBOS/CapQuest or any related company for this debt.

During the course of sending these template letters I received various correspondance from Marbles and related companies (HBOS, HFC etc) some threatening me with defaults and some saying they were sorry I was unhappy with the service and would investigate for me.

I learned from this website that under the Banking Code I was not obliged to make payments, they were not allowed to add interest or defaults to my account. I informed them of this via telephone and letter several times, but I still got letters from various offices around the UK from Marbles wanting money and/or threatening me with a default.

I checked my credit file again in March, my claim was at this stage going through the county court, and found a listing for a Halifax card and a default against it. The details say it was registered on 29th February 2008. I have no recollection nor evidence of getting letters warning me of this and also why wasn't it mentioned on my credit file when I checked it on 7th June 2008?

Marbles have told me they update credit agencies at the end of every month, so I find it hard to understand why my default wasn't on there before?

Apparently Marbles was bought out by HBOS/Halifax on 29th February 2009 - is this just a coincedence that this is the same date, but a year later, that the default was registered against me?

I received a refund cheque for the full amount I was claiming, plus my court fee, from HBOS/HSBC's solicitors and after waiting for it to clear in my account, I have today paid the account off in full. They had been adding interest to my account but they refunded it so it was the remaining balance that was paid. I also requested they close my account.

I spoke to someone last month who said they can delete the default, but after further clarification today it seems the default will still show but with 'settled' next to it. I've been reading on the internet and apparently this is still a bad thing and creditors will treat it the same as if the debt was still there. This doesn't seem fair at all!

Their customer care department say I can send in a notice of correction with up to 200 words saying why I feel they made an error and they can look into it, but she reckons because it showed as a late payment charge in February 2008 it's evidence I was warned? How, as this charge was added each month, in fact I had two each month before and after February 2008, so don't see it as evidence!

Marbles say they can only go back as far as 6 months to see my records.

Has anyone got any ideas or feedback as to what I can do in this situation? I would really like for the default to be removed and this is mainly why I've paid the full amount off. It's been a struggle and I really could have done with the money. I've had to put £200 of my student loan towards it as well to pay it off, and this leaves me with not much money at all.

Has anyone got any experience with notice of corrections? I really feel that I have a case because these companies are incompetent and have no record of what the other is doing, I have evidence of different letters from different departments being sent to me stating different things, no one seems to have any record of anything, and yet they can screw me up for the next 6 years with a default? It doesn't seem right!

nomoneytoday

On the flip side, you admitted not paying the debt in the first place back in 2004. Charges aside, wouldn't that warrant some kind of marker on the credit file?

digitalphase

I feel that they shouldn't have actually given credit to someone in part time employment anyway, as responsible lenders.

My financial difficulties have only begun in the last 4 years as a full time student. I was making payments up to and beyond the time the default is recorded as being registered on my file.

When I have spoken to Marbles they do not know who Capquest is, despite the fact that it was Capquest that I was paying for 6 months. They had no record of them at all!

There seems to be a huge communication breakdown within this company, as it trades under so many different guises.

Yes I had charges applied for making the odd late payment, but I did always catch up with the payments and I wasn't warned of a possible default. The only time I've been warned of defaults is during my claim and my account being in dispute.

I feel that because the debt has now been settled in full they should remove the default. I do not feel the default was issued properly in the first place.

Badger_Lady

Hey DP - have a look on the Consumer Action Group, there's a whole thing there about bank-charge-related defaults, and I don't see what that shouldn't apply to your situation:
http://www.consumeractiongroup.co.uk/component/content/article/47-guidance-notes/98-have-you-been-defaulted-on-a-disputed-account.html

(you may have to register but it's worth it )

naijapower

aron wrote: »

In that case i assume you feel equally as strongly about responsible borrowing?

Good point. :j:beer:

Typhoon2000

I got a credit card as a student without being in any employment so I presume being in employment is not a prerequesit for applying for or getting a credit card. They base they decision on what you but down on your application form. So I can only imagine what you put down on your form was enough to be given a credit card.

digitalphase

Thanks Badger_Lady for your helpful reply I will look at that link you posted.

To the others - yes I was irresponsible borrowing, I admit that, but have managed to pay it back so why should I continue to 'suffer' for 6 years because of a stupid mistake I made when I was 19? There's a world of difference between being a carefree 19 year old to a 25 year old. I have learned the hard way about credit cards and will never get one again.

I am glad my situation has given you some cause for merriment though, small things.... :rolleyes: