Does a lender have a responsibility to contact you over missed payments

immoral_angeluk

nottoolate wrote: »

they dont have to remove the default.

they just have to mark it in some way to show it is settled

Agreed. They will mark the default as settled but the default and missed payments will remain on your credit file as they are a true account of your payment history. The default will drop off your credit file after 6 years and will continue to affect your credit history until then.

The only way to have all defaults and missed payments from a lender would be if you had a case to argue that they shouldn't have happened in the first place, ie if the balance was settled/not your account etc etc.

happs

nottoolate wrote: »

they dont have to remove the default.

they just have to mark it in some way to show it is settled

I'm going to have to do some more research but they didn't deal with cab before the default was added and i agreed to the settlement a few days after the default appears to be added. I'll have to check the wording on the correspondence from them and check out what the laws state but i'm hoping i have something to argue from.

happs

nottoolate wrote: »

maybe also look at

http://www.bis.gov.uk/assets/biscore/consumer-issues/docs/c/10-1053-consumer-credit-directive-guidance.pdf

part 10.49 to 10.57

only applies to certain types of debts though

and may only apply while the agreement is current

cheers, i'll give that a read through.

happs

does anyone know if a default can be raised against you if you have entered into a repayment plan, can't seem to find anything that nails down the rules on it.

immoral_angeluk

happs wrote: »

does anyone know if a default can be raised against you if you have entered into a repayment plan, can't seem to find anything that nails down the rules on it.

A default is simply something that lenders are obliged to do under the consumer credit act if you are in arrears and have failed to remedy the default (ie repay the arrears and bring the account back to normal).
So even if you are in a repayment plan, if it's not the contractual minimum and you are in arrears then they have every right to issue a default. If you repay the debt after them issuing a default they'll mark it as satified but it will remain on your credit files.

happs

I'm looking at the Section 6 of the Post-contract information requirements of the CCA:

6
DEFAULT AND ENFORCEMENT NOTICES
Default notices
6.1 Section 87 of the 1974 Act requires creditors to give the debtor a
default notice in a specified form if, following any breach of a regulated
agreement by the debtor, the creditor wishes to terminate the
agreement, demand earlier payment of any sum, recover possession of
any goods or land, treat any right conferred on the debtor as terminated,
restricted or deferred, or enforce any security.
6.2 The requirements are set out in the Consumer Credit (Enforcement,
Default and Termination Notices) Regulations 1983.49 In particular, the
default notice must indicate:50
• the nature of the alleged breach of the agreement
• the action needed to remedy the breach or to compensate the
creditor, and the date by which this must be done
• the consequences of failure to comply with the notice
• the action intended to be taken by the creditor in the event of non-
compliance
• the procedures relating to the recovery of goods under a hire-
purchase or conditional sale agreement
• a statement indicating the debtor's right to apply to the court for a
time order, giving more time to repay the debt
• prescribed wording regarding sources of help or advice.
6.3 The date specified in the notice must be not less than 14 days after the
date of service.51 (This period was increased from seven days by the
2006 Act).52 The creditor is precluded from taking enforcement action
until this period has elapsed.
6.4 The 2006 Act also broadens the power to prescribe the contents of
default notices.53 The 2007 Regulations amend the 1983 regulations by
requiring (from 1 October 2008) prescribed statements in the case of
hire-purchase or conditional sale agreements (regarding the consumer's
right to end the agreement and the procedures involved) and in cases
where the agreement provides for the charging of post-judgment
interest.54
6.5 Creditors will be required, from 1 October 2008, to include a copy of the
current OFT default information sheet with each default notice.55
Enforcement and termination notices
6.6 The 1974 Act also requires service of a notice in a specified form if the
creditor wishes to terminate a regulated agreement, or to take other
enforcement actions, in cases other than involving breach by the debtor.
6.7 Under section 76 of the 1974 Act, the creditor is not entitled to enforce
a term of a regulated agreement by demanding earlier payment of any
sum, or recovering possession of any goods or land, or treating any right
conferred on the debtor as terminated, restricted or deferred, unless he provides the debtor with a notice of his intention to take such action at
least seven days beforehand.56
6.8 Under section 98 of the 1974 Act, the creditor is not entitled to
terminate a regulated agreement (in non-default cases) unless he
provides the debtor with a notice of his intention to terminate at least
seven days before taking such action.
6.9 Enforcement and termination notices are not needed where an
agreement is for an indefinite duration or where notice is served at the
end of the period specified in the agreement for its duration.
6.10 The information and forms of wording required in enforcement and
termination notices are laid down in the 1983 regulations,57 and broadly
parallel those applying to default notices.58


There is certainly stuff there that they didn't do. I know it's pretty slim but given that otherwise i'm facing a 6 year black mark i'm going chase every avenue available.

nottoolate

issuing a default notice under the consumer credit act and recording a default on your credit files are not the same thing

they just happen to both use the word default, so people get the requirements for doing them mixed up

exactly when a creditor can register a default with the credit reference agencies is set out in detail is this report from the information commisioner

http://www.ico.gov.uk/upload/documents/library/data_protection/detailed_specialist_guides/default_tgn_version_v3%20%20doc.pdf

Filing defaults with credit reference agencies

The aim of this guidance is to provide advice to lenders and others who provide credit about when and how to file information about defaults with the credit reference agencies to ensure credit reference agencies are able to hold fair and accurate records about the financial standing of those individuals

happs

Ah, okay. I'll check that out. Cheers

--edit--

Looks like there is some stuff in there i can work with. Thanks again

-- 2nd edit --
for anyone else interested:

Accounts should not be routinely filed as being in default where full
payments or those due under a rescheduled agreement are fewer
than three consecutive months in arrears.
 Accounts should normally be filed as being in default where those
payments due have not been received for six months.

custardy

happs wrote: »

Offer to clear the full balance if they'll repair the damage they've done to my credit history, failing that i'll clear it and put in a complaint to the office of fair trading for 4 breaches.

It's been a learning experience for both of us.

who did the damage?

happs

custardy wrote: »

who did the damage?

I failed to keep my obligations and they failed to meet theirs. On 4 counts.