Default notice

canadianben

In 2007 I took out a loan with Halifax which due to loosing my job I fell behind with the payments. In October 2009 after missing 5 payments my parents paid a partial settlement of £4200 (i owed £5200) all was fine with this my credit report said the account was settled and balance satisfied, up until yesterday 23/11/11, after the account being closed for over 2years Halifax added a default to the account. This has seriously distroyed my credit rating, I am waiting to hear back from Halifax but they said this could take 5days, Is it legal to add defaults to accounts that have been settled and closed?? Please help :mad:

boogiemaster

A default stays on your credit file for six years but I'm sure they can't just add a default two years later.

A default is when you default on your credit agreement and they have a right to add a default to your credit file but they normally do this within six months of your defaulting on payments.

They should send you a default notice and give you chance to rectify the situation and if your unable to pay then they place it on your credit file.

I don't think they can do this but I'm sure if Tixy comes on she will let you know


Halifax placed a default on my credit file and then removed it because they sent a letter stating they would not be chasing me for the money.

Then I get a letter form 1st credit saying they had bought the debt and pay up or we will make you bankrupt.

When I told them about the letter they handed the debt back to Halifax who removed the default and it was only three years old.

So they do make mistakes and they should have sent you a default notice but I'm sure if Tixy reads this post she can advice your better than i can

canadianben

Thanks for the reply, spoken to so many different people Halifax have said the default is right and they wont remove it, I explained that I know that it is against the law to add a default without first contacting the customer and not only that a default has to be registered within 6months of the original default date, they claim the default date is June 2008, the lady i soke to said there was nothing she could to but offered me 75pounds in compensation to close the complaint, I declined so she has escalated to complaint to a higher department, I have also logged a complaint with the FOS so have to wait and see the outcome, I may even try for compensation as today when I went to buy my new car I was declined by the finance company!!

McKneff

Dont try and push it with other compensation, it will just paint you as greedy and will get you nowhere.

I just also wanted to say what lovely parents you have, I hope you appreciate them

canadianben

yeamy parents are great i am very lucky

happy_bunny_2

When you say the added the default after 2 years, what is the default date? Is it what it should be or is it 2010?

If its 2008, I don't think there is much you can do, as they have probably done you a favour by giving you 2 years of not being affected on your credit report. This presumes you were sent the correct default notice however. Have you asked them for a copy? If they won't provide it, then SAR them.

Don't accept the £75, I would wait for the FOS verdict.

Good luck

HB

canadianben

The default date is 2008 but as far as I'm aware the account never defaulted and I was certainly not sent any default notice, even if they did send a notice in 2008 which I did not receive surely they would have to send another one now as they didnt add it til 23/11/11 ?? I will wait for the outcome of the FOS but what is a SAR??. My credit rating has gone from a not bad 810 to a measely 640, I applied for my new car finance and have been rejected by 2 finance companys which is going to make it even worse:(

withabix

They are correct in adding a Default to your account, dated when you originally Defaulted (ie as soon as you started to miss payments - this is a Default).

Why do you think this is unfair?

You've had three 'bonus' years with an intact credit rating, which you weren't entitled to.

canadianben

Just had a phone call from Halifax and they have said they have checked there records and as a default notice was never sent by them they cannot up hold the default and it will be removed on Monday when the department opens plus £250 compensation, bit of a result but I've still been declined twice by finance so thats still going to have a neg effect

McKneff

Your still very, very lucky to have it removed, not many can.

The negative affect will go as soon as the default is removed, you cant help what has happened in the past. Yes I know that it
was inconvenient but there isnt a think you can do about it.

Spend the £250 on something frivolous and enjoy..................

happy_bunny_2

SAR = Subject Access Request. A copy of all they have on you within 40 days for a tenner.

Would have been a good way to get a copy of any default notice they sent you (or not).

But you don't need this now, well done on getting it sorted.

HB

canadianben wrote: »

The default date is 2008 but as far as I'm aware the account never defaulted and I was certainly not sent any default notice, even if they did send a notice in 2008 which I did not receive surely they would have to send another one now as they didnt add it til 23/11/11 ?? I will wait for the outcome of the FOS but what is a SAR??. My credit rating has gone from a not bad 810 to a measely 640, I applied for my new car finance and have been rejected by 2 finance companys which is going to make it even worse:(