Removal of Default

DanDanDan_2

Hello,

I've looked through the template letters but can't seem to find one that fully covers what I'm after. Hopefully this doesn't mean it wont be possible. Any advice on if this will happen or not will be welcomed.

I have a loan with A+L which is due to end in March 2011. Two years ago I had to write to A+L offering a reduced monthly payment. I'm now just over a grand in arrears, but back to making the full monthly payment with the agreement to pay off the arrears in March. I have managed to save enough money to pay the full outstanding balance next month (8 months early), however I want them to remove the default as it is effecting my career in accountancy. Do you think they will remove the default in exchange for early repayment? If so, how do I word the letter?

The second part to the question is that the loan has PPI attached, which I didn't know about until recently. Had I known about the PPI I would have cancelled it before going into arrears and therefore not being in arrears by anywhere near as much. A+L have since said that as I'm in arrears I can't cancel the insurance without clearing the arrears! Anyway, I'm not bothered about getting the premium back, I would rather use it as a carrot to get the default removed as this will be worth more to me long term. Will this be necessary? And Is there a template letter that might cover this?

Thanks for any help

Tixy

Hi Dan

A default should not in anyway affect a career in accountancy. You should never have to declare a default to anyone at work and nobody can find out about it (unless you are applying for credit and need a credit check) but nobody at work can find out about it.
If you were talking about a CCJ or IVA or anything then yes you have to declare this on your annual fit & proper form and yes they could find out about it by checking the registery trust online.

Banks rarely agree to remove a default, but you could try. I would think the closest you would get in terms of a template letter already written is this one -http://forums.moneysavingexpert.com/showpost.html?p=33792173&postcount=34 - but you would need to amend it quite a bit to say you want to pay the full amount off but early.

Do you still have a copy of the default notice they sent to you when you defaulted? have you checked it is legally correct? If not this could be another option for getting the default removed.

With regards to the PPI I don't know enough about it - I would look on the reclaim board or ask on there where you stand.

subflow

Tixy, I read through that template letter, I found it to be useful, however this doesn't seem to apply if you're on a DMP?

I'm going to be in a position to clear my debts soon due to selling my house, so if there's perhaps a methodology in clearing defaults this way, please do let me know.

I_know_my_ABC_and_my_CMYK

Tixy wrote: »

Hi Dan

A default should not in anyway affect a career in accountancy. You should never have to declare a default to anyone at work and nobody can find out about it (unless you are applying for credit and need a credit check) but nobody at work can find out about it.
If you were talking about a CCJ or IVA or anything then yes you have to declare this on your annual fit & proper form and yes they could find out about it by checking the registery trust online.

Banks rarely agree to remove a default, but you could try. I would think the closest you would get in terms of a template letter already written is this one -http://forums.moneysavingexpert.com/showpost.html?p=33792173&postcount=34 - but you would need to amend it quite a bit to say you want to pay the full amount off but early.

Do you still have a copy of the default notice they sent to you when you defaulted? have you checked it is legally correct? If not this could be another option for getting the default removed.

With regards to the PPI I don't know enough about it - I would look on the reclaim board or ask on there where you stand.

Are those who work in accountancy not credit checked anymore?

DanDanDan_2

Thank you Tixy that was the best fitting letter I had also found. I will get creative with it and see what A+L come back with.

That's interesting what you say about my career as I recently applied for a role through a recruiter and they bumped me out of the process because I have 3 defaults, I guess it must just have been the recruiter thinking I wasn't worth the hassle. Out of interest do you know if it would affect me trying to get a job in banking? I've seen another role and want to know if it is worth applying.



I haven't checked the legality of the default, although I now will. Do you think I should delay paying them off until I have confirmed the default legality? Does it give me more leverage to get answers from them?

Tixy

Hi

I_know_my_ABC_and_my_CMYK wrote: »

Are those who work in accountancy not credit checked anymore?

Over the last 14 years I have worked in 5 different accountancy firms of varying sizes and have never once been credit checked for any of them. Admittedly I only ever went through a recruitment firm first but even then they certainly did not credit check me and I never gave anyone permission to look at my credit file.
At every job I have completed an annual form which asks to declare any judgments or insolvency arrangements but never ever been asked about defaults.

subflow wrote: »

Tixy, I read through that template letter, I found it to be useful, however this doesn't seem to apply if you're on a DMP?

I'm going to be in a position to clear my debts soon due to selling my house, so if there's perhaps a methodology in clearing defaults this way, please do let me know.

Subflow - I guess what might be more relevant to your would be the full & final letter that is on national debtline website - I guess you could try adding in an extra condition that any default is removed - http://www.nationaldebtline.co.uk/england_wales/factsheet.php?page=24_full_and_final_settlement_offers (I don't know if this would work its simply the method I would try to achieve what you want).
If any of your debts are with third party DCAs but your credit file still shows the default in the name of the bank rather than the DCA then they would not be able to remove the default.