getting a default date changed?

flossieflipflop

Hi,

Quick summary; I joined a dmp in Oct 2007 (previous to this I had been making my contractual minimum payments to most of my debts).
Egg duly defaulted me Nov 07
Barclaycard have never defaulted me
Lloyds TSB Od - defaulted me April 10 (2 1/2 years later)
Lloyds TSB Loan - defaulted me April 10 (2 1/2 years later)
LLoyds CC - Have never defaulted me

I just wondered what my chances would be to write to LLoyds to ask them to alter the default dates to when I actually defaulted back in 07 or 08 if they allowed more than 3 months?

I feel it's a little unfair that I will be penalised for longer than say someone who has been declared bankrupt because they added their defaults so much later. So in effect the combined defaults from my dmp would total 8 years rather than 6 from enetering my dmp.

I'm also concerned the 2 accounts that aren't defaulted that they will add a default at any time and therefore affect my credit score for yet another 6 years .

So what do you think my chances are in getting those default dates changed to 07/08? Anything in particular I should include in my letter?

Also why do you think 2 of the accounts have never been defaulted (to be honest I wish they had been!)

Thanks if you can help

Flossie

flossieflipflop

Oh and just to add that I only want my credit score to look better in a few years because we will need to remortgage at some point and want to be able to get the best deal - rather than cleaning it up for more credit!

fermi

Usually quite involved to argue, as the definition of a default is debatable, and in the case of DMPs a bit of a moving target depending on what your repayment levels and payment history have been. i.e. open to interpretation by the lender rather than set in stone.

There is some guidance from the ICO on what lenders should do here:

https://forums.moneysavingexpert.com/discussion/3172602

Some useful references in that, however some of it is (deliberately?) unclear, and in places even self contradictory.

One interesting thing I usually note however, is that it puts forward the idea on defaults that they:

should not result in the customer being placed in a worse position than someone who has made no effort to pay whatsoever

fermi

The daft thing is, in most cases re defaults, a person would be better off not paying a penny for 6 months to make sure the debt is defaulted.

Then going on a DMP once that has happened.

Nuts really.

Seems the banks (and ICO) set things up in a way that means people who try to pay back get their credit record screwed the worst. :wall:

flossieflipflop

Seems the banks (and ICO) set things up in a way that means people who try to pay back get their credit record screwed the worst

I know! I feel exactly the same way. If I hadn't paid anything back I would probably be in a better position to offer F and F's too but as only one account was passed to a DCA all others remain in house it's unlikely they will accept much below the full amount outstanding.

Thanks for your help though - I'm going to include that bit from the ICO in my letter!

flossieflipflop

This is the letter I intend to send. Does it seem ok?

Accounts: ********
********

3rd August 2011

Dear Sir/Madam,

I am writing with reference to the above accounts. As you will be aware I joined a debt management programme in October 2007 as I could no longer cope with my debt repayments. I hope you are also aware that I have met every single monthly payment on my DMP since starting it.
Therefore from October 2007 I have been in breach of my t&c’s of my original agreements and fully accept I have defaulted on these accounts. However, I am a little concerned as to why you have not defaulted them until April 2010 – almost 2 ½ years after the accounts went into default.
I am not disputing the defaults or the procedures of them (I was duly informed etc) but I believe the dates these were added are a little unfair. This will have the effect of harming my credit record for over 8 years (from joining the dmp and when my other creditors defaulted me in 2007, your defaults will not fall off until 2016). I want to be clear I have no intention of getting more unsecured credit in the future but at some point we would like to get a mortgage. This effectively means my credit record will be harmed for longer than someone who becomes bankrupt.
The ICO guidelines (although quite vague on the issues of defaults) does state that defaults “should not result in the customer being placed in a worse position than someone who has made no effort to pay whatsoever” I feel this may apply in this instance as I have paid monies every month since my dmp. If I hadn’t paid a thing my account would have been defaulted back in 07/08 and my financial position would ironically be better than it is now with defaults added so much later.
I am writing to request that you kindly change the default date on these accounts to when I actually defaulted – which would be end of 2007/early 2008 depending on your own policies for such an event. As I believe this is a fairer interpretation of how I conducted the accounts.
Kind Regards


I changed the bit about remortgaging to mortgage as I don't want them to know I own a house incase they try and put a charging order on it (I know they could do a search if they wanted but why make it easier for them!)

Is that ok to send do you think??

katsu

I'd remove "(although quite vague on the issues of defaults)" - no need to point that out to them!