Defaulted on Bank Account Overdraft

DMUK

I recently got a voicemail from a credit agency asking me to call them back. Those things spook me out, so after searching for the company in Google and finding out they are widely viewed as scumbags.

I was under the impression I had good credit, but to be sure I got my report from Experian. All was fine until I added an address I lived at maybe 4 years ago. Long story short, I had a current account with a bank when I was a student with a small overdraft, and since then I managed to change banks, forget about the overdraft and it is showing as "8" on the report with a Special Instruction Indicator of "Partial Settlement".

I do remember a call way back when, asking me to pay some money in to the account in an effort to clear it, but nothing since, and to be honest I did not update my address with them when I moved all those years ago (although I do have an up-to-date credit card with the same bank right now).

So, my question is, what should I do right now. I am planning on calling the bank to pay it back, but am curious about the situation now a credit agency (appears) to have gotten involved, and have questions about the partial payment. Am I stuck with this monkey on my file for another 4 years (defaulted in 2004) regardless of what I do now?

Help?

thesaint

You don't mention the Credit Card you have now, but it may be ran by a different company than your current account.

I would wait for further advice before you contact the Bank, but they do have the power to remove the default if they want.

DMUK

Hi thanks for that.

As an update, it says "Overdraft Balance: Satisfied" which suggests that it has been paid from what I read. I hope it doesn't mean the debt has been bought and I cannot (a) deal with the bank and not an agency and (b) get it removed by the bank anymore as they do not own the debt.

Although it still lists the total amount as the default amount - is the Overdraft Balance being satisfied part saying it has been satisfied because it has defaulted - confused!

DMUK

Some more information which maybe key:

Special Instruction Start Date: 11/2006
File updated for period to: 12/11/2006

Seems a short period between the Instruction and it being "Satisfied".

I note that the Default Balance is actually £50 more than the amount my overdraft was for. To clarify, I never went over my agreed overdraft.

DMUK

Spent pretty much the whole afternoon researching this and I cannot find another example of a default being balance being satisfied whilst the default amount still showing (and me knowing I have not paid it).

Been feeling sick for a while now - can anyone help?

thesaint

Have you called Experian to ask what it means?

DMUK

Hi thesaint,

Yes, I called today and they confirmed that the Satisfied tag means that after I defaulted the debt was paid but only partially so after agreement.

I know I did not pay off the debt, so that only leaves on likely logical explanation especially considering the special instruction date was November last year (and I would have remembered).

I really do not want to deal with the credit agency as they have an extremely shady reputation online and I can see getting the default removed as I never received the notice more difficult (or will it)?

DMUK

Okay, I assume that contacting the bank cannot do more harm than good, and will likely give me the bigger picture about my options, so I shall call the bank in the morning.

I assume I have no claim against genuinely not receiving the default notices unless it is at the banks discretion?

I read this too which I assume applies to overdarfts/bank accounts in addition to credit cards? - http://www.learnmoney.co.uk/credit-cards/remove_default_notice.html

I could really use some MSE input right now!

thesaint

The bank does not have to inform you that you are to receive a default notice. They do not take you to court or anything like that to put one on your file. All it takes is a period of time of you ignoring their letters before they take this action.
From the sound of it they have sold your debt to someone else.

sgx.saint

The bank does not have to inform you that you are to receive a default notice.

A Bank has to send you a copy of any Default Notice for it to be properly issued.

The bank does not have to inform you that you are to receive a default notice.

If the bank sold the debt to a DCA, then you will no longer be able to deal with the bank as the DCA will be the legal owners of the debt.

Send them a CCA request and take it from there.

DMUK

sgx.saint wrote:

A Bank has to send you a copy of any Default Notice for it to be properly issued.



If the bank sold the debt to a DCA, then you will no longer be able to deal with the bank as the DCA will be the legal owners of the debt.

Send them a CCA request and take it from there.

Thanks for that. Do you mean send the bank a CCA or find out if the debt has been sold and send the DCA a CCA?