Barclay Loan - Defaulted account dispute

Mode1803

Any help with this problem would be great!

I took out a secured loan via Barclaycard years ago to consolidate some debts and do some home improvement stuff. At the time I took out the loan I paid more per month to have income protection insurance against the loan - with Barclaycard.

Anyway, long story short I had a business that failed then could not find work for 9 months - 9 months with Zero income.

When I could not pay this loan I had forgotten that I had loan protection and so never made the claim. I simply never even thought about it - I was in a very bad place at the time and had too much other crap going on as I am sure you can imagine.

A couple of payments were missed but we borrowed money from family and did make some payments etc.

I finally twigged that we had insurance and claimed and they paid out. Only recently when I checked my credit rating did I see that this was account was in default. I could not believe it and was even more annoyed as this, other than some late payments on other accounts and payment plans etc, was the main factor affecting my rating.

The date of the default was also completely baffling as it was after the insurance claim was made and began paying out.

I have written to Barclaycard and asked them to remove the default giving the following reasons:-

• I took out insurance and am therefore a consciencious borrower
• I did forget the policy existed but then they could have reminded me when chasing for payment, particularly bearing in mind the payment is to "them" as a single entity
• The account was never more than 2 months in arrears
• The account is not totally up to date
• The default date was after the insurance had started paying out - how the hell can it be an account in default when they knew the insurance was covering the payments?!?!?!?

This is massively affecting me as I could do with consolidating some other debts with a loan but cannot do anything with this default on my credit file.

I believe that they can remove this default at their discretion but are refusing to do so. I have taken this to the Ombudsman but it will take ages. All this time I am paying massive interest on other loans and have no room for manoeuvre.

Any tips or advice anyone or perhaps I have no chance? Be interesting to hear from you guys!

Cheers

Mode

CHR15

You seem to have done an excellent job of explaining precisely WHY you are in default.

Mode1803

Perhaps I should have added that the insurance paid out and when I got a new job I made all the regular payments etc. the account is up to date and there are no arrears at all.

The account was never in arrears longer than two months and is now up to date.

I strongly believe that the account was never behind to an extent that deserved a "dafault".

Hope that makes sense and is clearer for you??

Cheers

Mode

Mode1803

Perhaps I should have added that the insurance paid out and when I got a new job I made all the regular payments etc. the account is up to date and there are no arrears at all.

The account was never in arrears longer than two months and is now up to date.

I strongly believe that the account was never behind to an extent that deserved a "dafault".

Hope that makes sense and is clearer for you??

Cheers

Mode

MrsTinks

I think that if you defaulted the account they are entirely correct in placing a default on your account - however if you have paid the payments and your account is now up to date then it should be marked accordingly...
As for the date of default - if you don't like the date you can rightly ask them to correct the date to when it was defaulted. Giving it less time on your credit file (albeit I'm guessing a few months out only?)

So... I'm not sure what you're arguing? You say the account was defaulted... if you think "only 2 months at any time" isn't enough then what would you say IS?

It's NOT up to them to advise you of the insurance as they don't know if you can make a claim... you could have resigned a job or been sacked for gross misconduct - most plans will not pay out on these occassions. It's YOU who has to make the claim... so... I can't really see a justification for them having to remove the default... based on what you have posted... it's correct

Mode1803

Hi MrsTine - thanks for replying.

I guess there is a whole lot of detail that I have not put on this post which would, I believe, change your views. That said, when reading my post back I can see your point!!

I was in constant discussion with Barclays during the period in question and also agreed a payment plan with them etc etc.

I still cant see how, when the loan was with the insurers and being paid by them, in full, that I should still be deemed to have defaulted the account.


I would imagine that the whole purpose of credit reference agencies and the reports they provide is to advise any future lenders on the suitability of any applicants for credit of any sort. Or to put it another way, to help them steer clear of individuals with a history of non-payments and unpaid loans etc.

The point I am trying to make in all of this is that surely the fact that I took made some payments, took out the insurance policy, made a claim and have managed to subsequently bring the account completely up to date shows that I am not a credit risk.

I will keep you all posted on the situation as I am not going to let it go.

This does not even go into the whole "customer service" side of things which most banks choose to ignore!!

Cheers

Mode

CHR15

Mode1803 wrote: »

I still cant see how, when the loan was with the insurers and being paid by them, in full, that I should still be deemed to have defaulted the account.

Because you had already defaulted by the time you made an arrangement to catch up (the Horse had bolted)

IIRC if you had missed a payment but paid it BEFORE the next payment is due, that would be a LATE payment. Not the end of the World, but not good either. The number of weeks late would be recorded on your credit history.

If you do not pay BEFORE the next payment is due, that is a MISSED payment, a DEFAULT.

Sounds like you had 2 defaults before you managed to get things under control and make your claim.

It all sounds correct - nobody to kick but yourself for forgetting to claim on the Insurance (none of them would know, or care, why your payment didn't arrive)

Mode1803

Fair point - sounds like I am flogging a dead 'orse.

I did not know that 2 missed was enough to be default. I just assumed, with absolutely no evidence to the contrary, that 3 months would be the kind of period they allowed before banging a default in.

I still think it is a bit harsh but there you go, will let it run its course.

Off to hang meself now.......................

Only kidding

Mode

needtofightback

Hi
I don't know an awful lot but will pm you

Apples2

needtofightback wrote: »

Hi
I don't know an awful lot but will pm you

I know NOTHING - Can I have a pm too??

Mode1803

If you look in this link on another forum (you have to add the www. bit as I am not allowed to post links!) you will see a letter I send to Barclays which includes a timeline which I think supports my point pretty well?

forums.all-about-debt.co.uk/viewtopic.php?f=55&t=373

Just in case anyone wants to see a bit more detail.

I am probably still flogging the proverbial non-breathing static horse but you never know.................