Default on Credit File

Gina22

I have a default on my credit file which relates to an overdrawn joint account with Natwest. My ex-husband did a flit and muggins here was left to foot the bill along with everything else!! I entered into an arrangement with Natwest to pay it off monthly, I kept to this arrangement although from memory I believe that in 2008 I was late on one or two payments and then I set up a standing order to ensure that it wasnt late again. Every 6 months I got a phone call from them asking to review the monthy amount etc, new amount agreed etc. Somewhere along the line the debt was taken over by Trident Credit Services and again every 6 months I would get a call and a review of the monthly amount was agreed etc etc. I never missed any payments but my credit report shows the account as Defaulted. The arrangement to pay all started in 2007 and not once have I had a Default notice from anyone. My credit report shows that I am in an arrangement to pay with them however in Dec 2009 instead of AP it says D. Now what I am confused about is, is this an actual Default?? I checked my bank statements and the payment was paid to them in Dec 09 so am not sure why the D has been added to my credit report? I have an old credit report from Jan 2009 and it doesnt show that account being in Default then but my credit report now shows it as a default. When I spoke to Trident Credit Services today (to pay all money owed) I asked them when the default letter was sent and was told that no default letter has ever been sent to me??? I have raised this with them as a dispute which their care team will now look into on my behalf. I have also raised it as a dispute with Equifax and Experian. Has anyone any idea if I should have a default??

By the way I am not disputing that the money is owed to them at all as I know my ex-husband withdrew the money from the account in the first place.

Any help or advice please?????

p.s my credit report does not show that I was late paying in 2008 it just says AP from 2007 til now (appart from the D in Dec 2009).

p.p.s when I applied for a mortgage recently I was told the default was from 2007

GeorgeUK

Hi Gina

Getting a default could be a blessing in disguise. There are some people that failed to keep up with the agreed payments and 10 years later, that account remains on their credit report showing late and missed payments - even though they are paying an agreed amount back each month and on time. With getting a default, the account would drop off the credit report 6 years after the date of default (original first missed payment).

While they may not have sent you a default notice, which i agree they should have done, if you were not in a position to clear the debt within 14 days of receipt then the default would stand. If they were to go by the book right now, what they would do is remove the default and issue you with a default notice. You would then have 14 days from receipt of the letter to remedy the fault (which usually means paying off the account). If you were not in a position to do this, then they would be able to put the default back on your credit file with a date within 6 months of the actual default.

You can be given a default if you breach the original agreement - this is so that they can pursue legal channels should they wish to. If no default was issued, then they would not be able to take someone to court. It does not mean they will take someone to court - it just gives them the option. You have come to a payment agreement with them, but as this was after the initial breach, the account will still be defaulted. It is the initial agreement that is looked at with regards to defaults - not any subsequent ones.

My advice would be to let the default remain in the default date is correct and if you will not be able to pay off the outstanding balance before the default drops off your credit file (after 6 years). If they decided to remove the default, the account could stay on your file for longer and as the original agreement's payments are not being made, payments will probably show on your credit report as missed or late.

Gina22

Thank you for taking the time to respond. I have now paid the full amount of the original debt so will show on my credit file as settled in full, or words to that effect. With regard to the default on my credit file if they are unable to prove that a default was sent to me (not sure how this can be proved though), then I could try to pursue this with them in order to get it removed? Is that right? They did confirm to me today on the phone that a default has never been sent to me. Also on my credit file there is no date in the default field, which confuses me as I thought there had to be a date there?

rhcp

If it's with Experian, D = the account is not being used and nothing is owed. If you say it is now paid, maybe that's what it is. If its defaulted it should have the words default on the file.

Gina22

Its with Equifax as a D and when you run the cursor over it it says Default. But I have consistently been paying and not missed a payment, which is confusing? I also didnt get any letters from them which is also confusing.

Gina22

Also the payment was only made today so wont even show up on credit report as settled for a few months.

GeorgeUK

Defaults are notoriously difficult to get removed unfortunately.

There is a legal requirement for them to send a default notice to you before putting the default on your credit file. The default notice is a legal document that notifies you that there has been a breach of your agreement, what this breach is, how you can rectify it and when it must be rectified by.
http://www.legislation.gov.uk/ukpga/1974/39/part/VII/crossheading/default-notices/enacted

Check who put the default on your credit file - only the company that put it on will be able to tell the credit reference agencies to remove it. Write a letter of complaint to them stating that you have not received a default notice and therefore they have not complied with their legal requirements under the Consumer Credit Act 1974. State that you require the default to be removed within the next 30 days and for you to receive written confirmation that this has been done. If they do not do so, you will report them to the FOS and ICO.

If you can afford it, i would also try to get a little insurance before sending the letter of complaint to them. If you were to send a subject access request (SAR - cost £10), then under the Data Protection Act, you are able to request a copy of all information that a company holds on you. There are some templates on the board. This will allow you to see if they do have a copy of a default notice. If they then come back and say look, this is a copy of a letter we sent - but they did not send it in the SAR, they would be in breach of the DPA and you could report them to the Information Commissioners Office. It may be worth mentioning in the complaint that you requested a SAR and there was no default notice provided.

If they do not do anything then you should go through with the threat and report them to the FOS as they have not adhered to the legislation by not sending a default notice. Also report them to the ICO for breach of the Data Protection Act as they would not be allowed to inform the credit reference agencies that there was a default if the legal documents had not been supplied to you.

Bad news is that default complaints are quite often ignored and the FOS is as effective as a paper umbrella.

If you have any other debts (or do in the future) it is worth bearing in mind that if you default and are making payments, you may be able to make a reduced full and final offer. This would allow you to pay a lump sum which may be only 75% of the remaining balance. This can often be used as a bargaining tool to get a default removed. In your case it looks like they should remove the default but that may come down to whether the people that receive your letter or complaints actually know what they should be doing.

Gina22

Thank you, thank you, thank you!!

That advice is just what I was looking for!! I will do a Subject Access Request right now and hopefully if a default was issued it will be sent as part of my request but if not then I know that I can go forward in my quest to remove this default which I am 99.9% sure shouldnt be on my credit file. Can you point me in the right direction of the template for the SAR letter?

Thank you again for all of the advice, I feel more confident in fighting this thing now.

Gina22

P.s Can you point me in the right direction for the template for the SAR letter??? thanks

GeorgeUK

There are basically 2 types of SAR you can send. One requests specific information while the other just requests all information held about you by the company. I would suggest the specific one so that there is no wriggle room whould they not provide it and try to do so later.

https://forums.moneysavingexpert.com/discussion/comment/25519441#Comment_25519441

Don't forget to send the £10 payment with it - i think most people send a postal order.
They have 40 days from receipt of the request to provide you with the requested information, so keep a note of when the letter was sent.

PNPSUKNET

one thing to remember if they take the default off, it will replace with a batch of 3s which will then be there for 6 years