Natwest CC Default

whizzkid001

Had a Default notice sent on 22 Feb, arrears of £75 and over credit limit £152.83, balance owing at this date was £1202. At this time I had lodged a claim for the return of their penalty charges and so the balance owing was clearly in dispute.

I got refunded £950 in credit card charges just a few days ago, so balance owed on card dropped to just £250, this I then paid off in full several days later.

So, now they have:

1) terminated my account, which is one thing as surely they should not have closed my account as a retalitory measure to my complaining about charges;
2) they've also gone ahead and recorded the default on my credit file - even though most of the sum owed was made up of charges that have now been repaid.
3) wouldn't the default notice itself become invalid as soon as they've repaid the charges, seeing as it no longer reflected the true amount owed?;
4) am I right in thinking they should not have gone ahead in any case chasing me for any sum owed, and sending the default notice, whilst that sum was clearly in dispute?

They incredulously claim that "the full balance was never in dispute" and "we required a minimum monthly payment on the account" and they refuse to remove the default, they refuse to treat it as a 'normal' closed account, only a default now showing 'settled' alongside it. This is outrageous. What do you lot reckon is the quickest way to remove these days - court or Ombudsman?

natweststaffmember

On question 2 can I ask how much they defaulted you for?
They cannot chase the balance in terms of sending it to a DCA but they can default the account AFAIK.

whizzkid001

natweststaffmember wrote: »

On question 2 can I ask how much they defaulted you for?
They cannot chase the balance in terms of sending it to a DCA but they can default the account AFAIK.

They defaulted me for the sum on the original default notice ie £75. But of course, once the charges were refunded, which was nearly the whole balance owing on the card, that sum in retrospect was no longer owed any more; ie they have defaulted me on a sum which was no longer applicable once they refunded me the charges.

And even if that were not the case, I would alternatively argue that they had no right to be sending out a default notice chasing me for this sum in the first place, when that very sum was quite clearly in dispute with the charges claim.

natweststaffmember

whizzkid001 wrote: »

They defaulted me for the sum on the original default notice ie £75. But of course, once the charges were refunded, which was nearly the whole balance owing on the card, that sum in retrospect was no longer owed any more; ie they have defaulted me on a sum which was no longer applicable once they refunded me the charges.

And even if that were not the case, I would alternatively argue that they had no right to be sending out a default notice chasing me for this sum in the first place, when that very sum was quite clearly in dispute with the charges claim.

Have you asked them to remove the default notice on the basis of the refund of bank charges?

whizzkid001

natweststaffmember wrote: »

Have you asked them to remove the default notice on the basis of the refund of bank charges?

Yes, they refused. They say for example:

"The default notice was not issued as a result of the recent refund of charges you have received" (They could have fooled me - I'd lodged my charges claim on 21 Jan and the default was issued 22 Feb! And also, the account is in clear dispute from 21/Jan).

"Turning now to the information held on your credit file and the refunds on your account. Whilst I accept your point of view, any refunds/credits received on the account are in addition to payments, but do not constitute your monthly repayment." (So he accepts my point of view re charges restrospectively making the sums on the default notice invalid, but still won't remove)

"If payments are not received by the due dates, or if payments are not sufficient to cover the minimum payment required, this results in late payments being recorded on the credit file" (I have no problem with this, the late payment markers)

"However, in view of your recent payment your account will be marked as 'settled' and this information will remain available for the next six years."

"The full balance was never in dispute (excuse me - how'd they work that one out?!) therefore we required a minimum monthly payment on the above account. The bank is unable to amend the credit file if this is a true reflection of the conduct of the account."

BLT_2

It is probably an unpopular view however I fail to see the OPs perspective here. His initial thread clearly states that he was over his limit, in arrears, and regardless of how this came about he was clearly in breach of contract.

His main issues seem to be that he has had a default placed on his account. His original statement supports this default, and I quote '75 Pounds in Arrears', so where does the issue lie.

On another perspective he complains that they have closed his account. The option to close an account lies both within the lenders and the lendees terms and conditions of service. One can hardly blame Natwest for closing an account where the lendee had breached his conditions, failed to make payments on time and then subsequently claimed back over 1,000 pounds in bank charges.

I congratulate the OP on the refunds he managed to achieve and am happy that this has enabled him to close down the account, however given his history with the account I would suggest that he should be happy that he is ahead :-)

whizzkid001

BLT wrote: »

It is probably an unpopular view however I fail to see the OPs perspective here. His initial thread clearly states that he was over his limit, in arrears, and regardless of how this came about he was clearly in breach of contract.

His main issues seem to be that he has had a default placed on his account. His original statement supports this default, and I quote '75 Pounds in Arrears', so where does the issue lie.

On another perspective he complains that they have closed his account. The option to close an account lies both within the lenders and the lendees terms and conditions of service. One can hardly blame Natwest for closing an account where the lendee had breached his conditions, failed to make payments on time and then subsequently claimed back over 1,000 pounds in bank charges.

I congratulate the OP on the refunds he managed to achieve and am happy that this has enabled him to close down the account, however given his history with the account I would suggest that he should be happy that he is ahead :-)

I don't think you grasp the situation entirely.

Firstly, I was defaulted for a sum that had retrospectively become, on repayment of penalty charges, inapplicable. it's all very well saying I breached my conditions, failed to make payments on time etc, the fact is, before a financial institution are entitled to register a default, there are a number of very strict procedures that have to be followed to make it legal. If you read exactly what I said, you will see that there are several which makes their recording of this default unlawful.

As it happens, since I wrote that, I have also found them to be in breach of the Lending Code, which states that 28 days must be given to remedy a default- I was given 21....

Secondly, account closure itself is one thing, but arbitrarily doing it, tantamount to 'spite', is quite another. Many of the main banks have long been guilty of it, several have already been rapped by the Ombudsman for doing so. I had held my card for over 18 years, this had been 4+ months of arrears to the princely sum of £75 in all that time. So if you think my not reclaiming charges back had nothing whatsoever to do with it.... well, maybe you're a touch naive.

the_insider

Once the account is defaulted it is effectively closed, you can only make payments into it. It's not spite, the bank's have not started a personal vendetta against you, they have merely ceased to offer credit based on the conduct of the account.

natweststaffmember

the_insider wrote: »

Once the account is defaulted it is effectively closed, you can only make payments into it. It's not spite, the bank's have not started a personal vendetta against you, they have merely ceased to offer credit based on the conduct of the account.

The issue is that the amount was in dispute when the default was applied. When the dispute was resolved the default itself was unnecessary as late payment markers would have been valid. That is what Whizzkid is saying.

the_insider

He is also implying that the bank closed the account based solely on his refund.

natweststaffmember

the_insider wrote: »

He is also implying that the bank closed the account based solely on his refund.

He reclaimed unlawful credit card charges that were repaid, they defaulted on his account whilst the complaint was being dealt with over the charges so he can interpret it as a retaliatory action. Once we have their viewpoint ie when whizzkid writes to them then we will see whether their view is based on anything else.