Default notice in error?

ybbon66

Hi,

In 2008 we realised we would run into some problems and did the sensible thing and came to arrangements with FirstDirect, Barclaycard and Mint.

At the time, Mint was owed £2923.32 and we made an offer of £23.50. They agreed to this but issued a default notice as the amount we agreed to pay was less than the 2.25% of the total but we were told at the time this is just a formality and has to be done.

We then did the next sensible thing and made no further credit applications so never looked at my credit report. Recently, in an attempt to reduce another card's interest rate, (at the time it was not included in agreements as it was a 0% BT card and the amount we offered was more than the required minimum but I digress), I was refused and then went to look at my credit report.

Mint are marking my account as in default still, I called to ask why earlier today (prior to finding the letters where they said they were marking it as default) and was told that 27 payments were late. This is wrong, even before the agreements we never missed a minimum payment.

The balance owing now is 2034.92 and payment made is £65 p.m which is now more than the minimum 2.25% of total debt.

I obviously need to write to them and explain this and also ask that the default is removed. Neither Barclaycard or FirstDirect marked my account as default.

So my questions.

Should they still mark my account as default when I pay more than the minimum of 2.25%?
Should it have been marked default in the first place?

thanks,

Tixy

A default notice can be issued a default entered on your credit file if you do not pay the original contracted amount, eg the normal minimum payment.
Even though you came to an agreement with them it is still not uncommong to issue a default and they are entitled to.

The default is entered at a specific date and remains on your credit file for 6years from that date. If the debt is fully paid off then the default should be marked as settled but still show.

ybbon66

Tixy wrote: »

The default is entered at a specific date and remains on your credit file for 6years from that date. If the debt is fully paid off then the default should be marked as settled but still show.

Thanks, as I thought. The original payment was less than 2.25% of the total, now we are paying more than that 2.25% so I have written a polite letter explaining that and asked them to remove it, can't hurt to ask.

Dabooka

Good luck with that, post up when you get a response.....

ybbon66

Long time no update...

My company got bought out, as part of that I cashed in some stocks and basically made enough to pay off this card in full.

Now I have a FirstDirect one, arranged now to pay the same monthly amount until paid, same for Barclaycard, a mint for a small amount (about £100 now) which we'll either pay back within 5 months or may just pay in full next month, and the last nasty which is an MBNA not in agreement that currently costs £150 in interest per month.

Ouch. So I may review and now that this blocking card is paid in full, see if we can get a balance transfer on that to least mean I can pay more of the actual balance off.

However, this particular issue is closed as the matter it concerns is fully paid/resolved.

Hax

ybbon66 wrote: »

However, this particular issue is closed as the matter it concerns is fully paid/resolved.

Did you get the default removed then?

KingElvis

Hax wrote: »

Did you get the default removed then?

Is that a pig I just saw flying past my window:rotfl: