What is the law on default notices???

Garybono

Hello all and thank you in advance for any advice,

I am trying to help my son remove a default notice on his credit file placed by Vodafone/singlepoint in 2005.

After much searching i have discovered that creditors/lenders are obliged to comply with the CCA when issueing a default notice.

I am also aware that mobile phone providers are not deemed as Creditors/lenders and as such are not governed by the CCA.

Who are they governed by the Data protection Act? if so then why are they allowed to report to credit reference agencies whent the act expresses that they may only do so whilst the subject gives consent to this.

presumeably consent was given at the time at which the contract was valid but the contract expired in 2006.

Who can legally issue a default notice? can I as an individual issue a default notice to the chairman of Vodafone if I can prove that he owes me money?

Why does a default notice stay on a credit record for 6 years, where is the statute that states 6 years as a suitable period to report upon a credit file?

Surely if my son withdraws consent to singlepoint to report on him to third party agencies under the Data Protection Act they must comply.

Please be aware that I am only speculating with the above law and have no real legal knowlege. Any help would be greatly appreciated especially reference to statue.

fermi

A "default notice" under the Consumer Credit Act and a "default" on your credit file are two separate things.

They are often confused with one another, assumed wrongly to be the same thing, or wrongly assumed that one is always dependant on the other.

As far as defaults on your credit reference files are concerned, they do fall under the Data Protection Act. That is overseen by the ICO.

For detailed info see this link:

Technical Guidance Note - Filing defaults with credit reference agencies

Garybono

Many thank's ill have a look

Garybono

D you know where the 6 years rule comes from? I cannot see anything about this.

In regards to your second link the only part i thing would apply is the following

SCHEDULE 2 Conditions relevant for purposes of the first principle: processing of any personal data

1 The data subject has given his consent to the processing.

but surely if this forms part of the contract it is only applicable for the contract period unless it states otherwise

DarkConvict

6 Years is the rule for anything on your file, i would assume data protection states that it would no longer be relevant to hold data for longer than 6 years, as such it shouldn't affect future credit and thus no be visible on searches.

naughtymittens

There was a report done on credit ref agencies in 1971 and the 6 years was chosen then. It was industry standard at the time. I understand that you give your consent to the info being oassed to the credit ref agency at the time you take the contract out. Also worth bearing it mind it will be removed 6 yars after account is closed/settled not 6 yars later if account is ongoing.

GeorgeUK

Possibly also worth checking when the actual date of the default was (when he stopped making payments) and make sure they have used this for the default date. 6 years after the default date, the account will fall off his credit file.

All data remains on the credit file for 6 years - if you closed an account, it would remain (as closed) on your file for 6 years. It is very difficult to get defaults removed but not impossible. The main problem is that even when correct procedure has not been followed, complaining about it does little use and even the regulatory bodies don't seem that interested.

PNPSUKNET

when his mobile was cut off for none payment, it would of given a warning prior to this of an overdue bill it states the default action within this letter

Garybono

Thanks everyone doesn't look like he'll be getting this default removed then. I may write offd and ask them anyway though to see if they will out of goodwill. I dont fancy my chances though.

MrsTinks

If he defaulted then why should they?
The reason for a credit report is to inform other creditors of the credit worthyness of an individual. If they have been responcible and managed their credit or if they have not managed it. From here it looks like your son has not been responcible so would present a larger risk to lenders - he now has to prove to them that he CAN be responcible. If he settles the default and gets a credit card (yes with high APR) that he spends a little on every month and pays in full before he gets hit with any charges then his rating will soon be climbing back up.
As his father support him and help him but stop cleaning up his mess for him He's a big boy (over 18 if he has a mobile contract!) now and he needs your advice and support - but you won't always be there to fix his problems for him

Garybono

MrsTine wrote: »

If he defaulted then why should they?
The reason for a credit report is to inform other creditors of the credit worthyness of an individual. If they have been responcible and managed their credit or if they have not managed it. From here it looks like your son has not been responcible so would present a larger risk to lenders - he now has to prove to them that he CAN be responcible. If he settles the default and gets a credit card (yes with high APR) that he spends a little on every month and pays in full before he gets hit with any charges then his rating will soon be climbing back up.
As his father support him and help him but stop cleaning up his mess for him He's a big boy (over 18 if he has a mobile contract!) now and he needs your advice and support - but you won't always be there to fix his problems for him

I see your point but the penalty seems harsh to have bad credit for 6 years for a couple of missed phone bills which were paid in full not long after the default was issued.

He has other credit and is responsable with it and considering the default his credit rating is ok in the 800's. Now he wants to get a mortgage and must wait two years in order to clear his credit record.

I understand as does he that it is his own fault but that is not much help.

The penalty being paid seems disproportionate to the actual initial offence.

the points you make about him being a risk to other lenders is invalid as he has a good job, wage and savings but is still paying for a mistake he made four years ago.

It seems a very easy to give someone a default without actually attempting to remedy the situation first.

To be frank i find your post somewhat pointless, everyone else has left useful information and help about the posted discussion, whilst you prefer to make judgements upon my son, his responsabilities and failure to deal with debt, a subject which in truth you know absolutely nothing about.