Default question.

gatwickba

I got into an arrangement with Co-op bank with a credit card and loan (which they turned into an overdraft on current account). I could not keep up repayments so they issued default notices back in 2007.
I've kept to the agreed monthly payments on the agreement, and they have not listed the accounts as defaulted on my credit report.

This month, I've had a letter from them telling me my arrangement is now to be reviewed annually and they will issue defaults and record them with the credit reference agencies.

My question is, can they list my default from now or does it have to be from when they originally defaulted the accounts back in 2007?
Seems strange they are saying they will now be issuing default notices.

I've written back to them informing that they sent defaults back in 2007, but not heard anything yet.

Any help?

DarkConvict

They can only issue one default per debt.

If the account was already defaulted in 2007 then it cannot default again.
The exception to this is if you close the account and move it, i.e. default credit card, but credit balance onto a new loan, then default on the loan. This is because the loan is a different account.

gatwickba

Thats what I thought, the accounts have not changed since the original default. So do co-op have to list on credit report as default in 2007 rather than now?
At the moment, they have them listed as "arrangement" so I'm assuming if they change the status to default it has to be from the original date, or can they just put is as default now?

Sorry if I'm rambling!

Britwife

Have you contacted them to ask why now after all this time. I would be asking since the agreement has been kept.

DarkConvict

They have to place a default within 6 months of your defaulting on payments, otherwise a default would last far more than 6 years, which is unfair and as such comes under the ruling of the OFT. Give the OFT a call if you can and see what their stance is on it.

The problem may be that they let you carry on making payments under an informal agreement but choose not to mark you as defaulted, just late payments.

gatwickba

Thanks for the replies.
I defaulted in 2007, and they accepted my payments on a 6 month review. Got a letter in Dec 09 saying the agreement had ended but they were willing to continue accepting the payments on an annual basis and now they would possibly ask the internal DCA to monitor it, or possbily sell the debt on (already got another 2 managed by external DCA so no surprise!)
last paragraph on letter said, in line with regulations they would now default the accounts etc.

I think maybe they were hoping I hadnt kept every letter they have sent me since I got into problems, but thats not the case.
I will await their response to my letter telling them they have already issued a default notice. I suspect they will sell it on.