DMP - Halifax Letter removal of default

chris_h16

Hi

We have been in a DMP with Payplan 4.5 years (coming to an end). We had a Halifax bank account and overdraft which was added to the DMP when we started it. It was for about £450.

They agreed to the reduced payments and carried on reporting to CRA that everything was fine. A year later they started reporting DMP but ok payments for a 2 months, then from then on DMP with payments in arrears,they did this for just over a year. Then they registered a default.

The default is registered nearly 2.5 years from when we started the DMP and they agreed the new payments. Can they do this?

I'm writing a letter to them asking as a gesture of goodwill to remove the default as it is stopping us from getting a mortgage, and we've turned a new finanical leaf etc.

Should i leave it at that or mention about the concerns that they served a default 2.5 years after the agreed the DMP start date?



Thanks in advance

Tixy

You might want to include a quote from the ICO guidelines on issuing a default that usually a default should be added when an account falls between 3 and 6 months in arrears.
Plus read the section on those guidelines that relates to DMPs, and you may want to quote from that part as well. You can find the guidelines on the ICO website.

chris_h16

Hi
Thanks for that, an interesting read.
I think Halifax sold our debt on, and looking at the details in my Payplan account it has an address for Blair, Oliver and Scott which I believe is Halifax Internal Collections.

If I read correctly in the ICO document, they are allowed to register a default at the point they sell the debt on but deciding to sell the debt on after 2.5 years of taking agreed reduced payments and we never missed any payments is this allowed?

climbingoutoftheabyss

I'm in a very similar situation with Lloyds TSB Chris.

I wrote to them last week referencing the Information Commissioners own advice that a default can only be issued when a relationship between both parties has broken-down.

I argue that as the DMP was agreed by both parties and that all payments were on time that there had been no break-down and therefore the default is unfair and should be removed.

If they disagree, then I shall lodge an appeal with the Information Commissioners office.

If you search information commissioner, then on their site look for their guidelines on the issuing of defaults (a pdf document) then there are quite clear rules.

Good luck with getting that default removed.

chris_h16

climbingoutoftheabyss wrote: »

I'm in a very similar situation with Lloyds TSB Chris.

I wrote to them last week referencing the Information Commissioners own advice that a default can only be issued when a relationship between both parties has broken-down.

I argue that as the DMP was agreed by both parties and that all payments were on time that there had been no break-down and therefore the default is unfair and should be removed.

If they disagree, then I shall lodge an appeal with the Information Commissioners office.

If you search information commissioner, then on their site look for their guidelines on the issuing of defaults (a pdf document) then there are quite clear rules.

Good luck with getting that default removed.

Hi
Yes that was another point I was thinking about, I read that in the PDF also and my argument is exactly the same as yours.
I just don't know whether to play on heart strings with the not being able to get a mortgage and affecting my family or whether to go for fact and complaining that I think its an unfair default. I guess I could try the heart strings first and if they don't give in, go for the facts/unjustified default.

climbingoutoftheabyss

Yes, I know what you mean, but I went right for the legality. A default is supposed to be used as a last extreme. Certainly in my case, and I think yours as well, there was no need to issue a default and it achieved absolutely nothing for the creditor.

In fact, logic suggests they have made things harder for themselves. If, for argument, I had wanted to re-mortgage and consolidate the debt (therefore clearing it in full) then it is highly unlikely that I would be able to do so now.

My frustration is that my DMP started 6 years ago, the defaults that were issued then are due to come off my credit record in February and March this year. Lloyds placed their default last April which was 5 years after I started the DMP. It was total nonsense really.

Good luck with your letter, please let me know how you get on.

chris_h16

Have you quoted particular paragraph numbers from the ICO guidelines or just your own text?
Which points have you made, I'm finding it difficult to get it into writing.

Is there a section in the document that backs up ICO deem registering a default as a last resort

climbingoutoftheabyss

I don't think it actually says it should be last resort, more that it infers it.

The particular section I referenced is:

[FONT=&quot]The term ‘default’, when recorded on a credit reference file should be used to refer to a situation when the lender in a standard business relationship with the individual decides the relationship has broken down[/FONT]

chris_h16

Yes I used that quote also
After that quote I have wrote:
The fact that the ICO infer a default being registered as a last extreme and a DMP was agreed by both parties and that all payments were on time, we don’t believe there has been any breakdown and therefore the default is unfair and should be removed. We believe that there was no need to issue a default and it achieved absolutely nothing for Halifax or any creditor past, present or future as we kept the agreed revised payments as shown on our credit file where Halifax show they are happy with the account as posting the monthly code of ‘OK’ and we didn’t deviate from this with arrears on the agreed revised payment terms, so a default mid agreement is unfair and unjustified.

climbingoutoftheabyss

Pretty much what I wrote too, I think that sums it all up.

In my opinion the defaults on both our cases are unfair and fall outside the guidelines. Lets hope that we get success

chris_h16

Are you sending to the normal contact us address or are you addressing for the attention of anyone in particular?
or are you sending to the CEO office or complaints address?