Unfair Default Help!

pegg_2

Hello all we are new to your forum but desperatly need help!

Ok so it all starts with a holiday in Australia were we where visiting friends. Whilst away my husband was expecting a payment from a recent job he had finished ( he is a self employed builder and has always had a good relationship with this client ).
Anyhow, the client didnt pay the money - which unfortunatly left our account short for our mortgage payment.
On our return we found out what had happened and got hold of his client who paid straight away - so then paid mortgage . just 3 weeks late.
However since this incident my husband went to purchase a new van but to be told he could not obtain finance! We looked into this further and to our shock Bank of scotland had placed a 6 year default on us! for arears on mortgage!
We have reserched tis and have been told that letters must be sent warning us of default. And a default is only added after 3-6 months of arears - Not 3 weeks! Bank of scotland are not helping - they refuse to remove it. we have also contacted the financial ombudsmen for help. But now we cannot get credit not a new morgage next year not a new van - nothing! It is horrendus and we desperatly need help - how can bank of scotland do this ! we thought there were laws inplace to stop this - but now we find just guide lines !!!
Help anyone please !

opinions4u

Is it registered as a default or a late payment?

If it's the latter, your credit file is reporting a statement of fact.

pegg_2

It is stating a default - a default for 6 years !
All the governing bodies etc say a bank can add a default after 3- 6 months of arrears - not a 3 week late payment and when we were the other side of the world ?!?
We have spoken to abbey, alliance and leicester, Royal bank of scotland and halifax - all of which say that this is not normal practice!

when i spoke to another lady at bank of scotland she even said that this was not right ! - but because she isnt dealing with it she cannot act.

We are just being bullied by this woman at bank of scotland!

But well get there , oh yes x

GMS

Do you have a copy of your credit report?

If so is it showing as a D if Equifax, or an 8 if Experian?

You should be able to get this rectified if you have only missed 1 payment. It is clearly not right if this is the case.

opinions4u

pegg wrote: »

It is stating a default - a default for 6 years !

All items on a credit report tend to stay there for 6 years.

All the governing bodies etc say a bank can add a default after 3- 6 months of arrears - not a 3 week late payment and when we were the other side of the world ?!?

It's not their fault that you were out of the country and not keeping an eye on your finances.

As I understand things, a lender can issue a default notice after a single missed payment, although they usually wait longer than this.

when i spoke to another lady at bank of scotland she even said that this was not right ! - but because she isnt dealing with it she cannot act.

We are just being bullied by this woman at bank of scotland!

Use their complaints procedure. It's all you have at the moment.

It doesn't change the fact that you missed the payment due date.

pegg_2

Fantastic comment ! the whole country is turning so slow ..... small businesses always chasing payment as i do ......... 3 weeks late and default - fair ? ! ?
well if thats your opinion then next time a client is 3weeks late should i take away there car ? or tv ? or perhaps just break there legs ! yep if thats the way forward ! GREAT BRING IT ON :beer:

pegg_2

oh and thanks gms , good to get positive comments for real people. we will look into it

michael1234

Opinions4U has been helpful in my thread so I don't want to prejudice that, but I have to say there is quite a big difference between one missed payment and a default.

Pegg, have you ordered your credit report already and this is how you know about the default ? Can you confirm the "8" or "d" status as gms mentioned.

I'm not an expert, but in normal times a single late payment of 1 month wouldn't normally be enough to stop unsecured credit like a car loan. However, in these times lenders are tightening up so it might just be that late payment is preventing them lending to you. Remember that from their point of view, you being late means you might be late again and/or not pay back - their being ultra careful.

In that case, I suspect a period of 12 months with flawless record behind you should be enough - id be very surprised indeed if you needed to wait 6 years (which would remove the late payment record permanently) before you could get any credit at all.

pegg_2

hi, yep wifes getting credit report. And i first new about default when i was buying a new van - no lender would touch me! we have never made a late payment before my bussiness is good , wifes in ful time employement and have stacks of equity in our property - so we are not the "scrubber type" that they are making us feel.
financial ombudsman will take over after us , But strangly when we spoke to a different lady at bank of scotland she said there should be 2 letters issued and a late payment fine before default! but we have recieved nothing !!! SO will keep you posted. but default is for 6 years the lady at bank of scotland told us.
Just cannot believe that they treat us like this - if I ran my company in this maner - well id be taken to court :money:

well get there im sure , but opinion coment - that being 3 weeks late and deserves a default - well lets hope it never happens to you x

TrickyDicky101

Your ire is poorly directed at opinions4u - if all you wanted was some mutual back-slapping and sympathy I suggest you post elsewhere. What opinions4u stated was fact and was indeed helpful in clarifying why your bank might be treating you like this (note that neither I, nor opinions4u, are arguing that the bank is necessarily being fair in treating you this way).

pegg_2

hey im a big boy i do not need back slappin or sympathy. Just trying to get head round the fact that a late payment - not arrears ! leads to a 6 year punishment ?
thats all , i am not angry with anyone ( apart for bank of scotland ) and all coments do help .