Surprise Default, what do I do

Allan1978

I have just been declined an upgrade on my credit card to Gold status and the reason given is that I have a recent default. I have checked with Equifax and this is correct. I have a few questions about it. I have what I thought to be a perfect credit record. A mortgage, a small car loan (£3000). two credit cards with zero balance and one with about £1k. I have the usual mobile phone, utilities etc and earn £25k. I have never had any problems getting credit before.

I changed bank about 2yr ago and as part of the change all my D/D were transferred. One of them however was overlooked a £12 a month payment to HFC bank for HP on some home appliances from a number of years ago. In all honesty I did not notice. I had set this up at a previous address and had not notified them, just kept paying. Anyway about 10 months a go a letter arrived from capquest demanding £1100 whioch included over £500 of charges and I realised what had happened. I explained what I had realised had happened and that if they reversed the charges I would pay it. By this stage it had passed to this agency and it was too late. They asked them if there was any way of resolving this as I did not have £1100 at the time. They called back and agreed that £650 would settle the account which I paid there and them on my switch card. I had no idea that this was a default and it was never explained that if I paid £650 that it was a default.

Where do I stand with this as I have demonstrated that I am very good and handling debt in every other case and this was a mix up which may have been partially my fault but I had no idea of the repercussions.

I am planning to move and remortgage and this is going to cause problems. What should I do? Can I get comments put on my credit file? I have a letter from Capquest stating that the account was settled at a reduced sum.

I am really annoyed at the whole thing

mparter

Write to whoever registered the default and ask them if, given the circumstances, they can remove the default. If they refuse, ask them to provide proof that the default has been correctly executed. By this I mean, ask them for a signed copy of the agreement and a copy of the original default notice.

If they cannot provide any of these then they are in breach of the Consumer Credit Act.

Allan1978

I have spoken to them tonight and I can see it from their point of view. In their eyes I did a runner and stopped paying. No amount of argument will change their mind apparently. They did remind me that I did call and request a settlement figure within the 12 month int-free period and from memory my intention was to clear it and they had no payments after that.

I am faced with 2 options.

Write to them and continue to write to them until they accept that I had no intention to stop paying and that they should remove the default

Add a correction to my credit file stating my case.

I have also seen lots of posts about rebuilding credit etc but as I have a number of things mortgage credit cards etc etc. Am I rebuilding it anyway?