Default notice after two years?

Jakey410

Hi, I have been doing a DMP through Payplan for just over 2 years now and for my First Direct loan they agreed to a ‘Payment Arrangement’ which was entered on my credit file. For the 2 annual reviews I had with Payplan, I was able to increase my monthly payments to them each time. Now, out of the blue, I have just received an email from Payplan saying First Direct have accepted my offer, but in future my account has been passed to a collection agency (MCS).
But the bit that has annoyed me is that they are now issuing a default notice. This seems really unfair considering I have been paying them the agreed payments every month without fail for the last 2 years and even increasing them each year. Why didn’t they issue the notice when I first had difficulties and started paying them reduced payments – this means this notice will stay on my file for the next 6 years from now, even though I have been in a DMP for the last 2 years. Even on my First Direct statements is say DMP for each payment received. Is there anything I can do about this or will I just have to accept it?
Any advice is much appreciated!

Alice_in_Welfareland

Jakey410 wrote: »

Hi, I have been doing a DMP through Payplan for just over 2 years now and for my First Direct loan they agreed to a ‘Payment Arrangement’ which was entered on my credit file. For the 2 annual reviews I had with Payplan, I was able to increase my monthly payments to them each time. Now, out of the blue, I have just received an email from Payplan saying First Direct have accepted my offer, but in future my account has been passed to a collection agency (MCS).
But the bit that has annoyed me is that they are now issuing a default notice. This seems really unfair considering I have been paying them the agreed payments every month without fail for the last 2 years and even increasing them each year. Why didn’t they issue the notice when I first had difficulties and started paying them reduced payments – this means this notice will stay on my file for the next 6 years from now, even though I have been in a DMP for the last 2 years. Even on my First Direct statements is say DMP for each payment received. Is there anything I can do about this or will I just have to accept it?
Any advice is much appreciated!

Strange as it may appear the default is better for you because the clock starts ticking from the date of the default. An arrangement to pay would remain on your credit file for 6 years from the last payment. Still agree that an earlier default would have been better.

Alice

meer53

The default is issued because you have defaulted on the original agreement by not making the agreed repayments. Even though you have made regular payments these differ from the loan agreement.

happy_bunny_2

google 'ico default guidelines'. Think there is a section in there on DMP, but not 100% sure.

Link:
http://www.ico.gov.uk/~/media/documents/library/data_protection/detailed_specialist_guides/default_tgn_version_v3%20%20doc.ashx

Then complain to FD, quoting what you need

climbingoutoftheabyss

Jakey

There are several posters on this board going through similar situations (including myself).

We're fighting these late defaults on the basis of the rulings from the Information Officers office which handles this area. The are we contest is the late timings. There are several threads in this section of MSE that refer to this.

I know it doesn't help, but Lloyds TSB waited 5 years in to my DMP to issue a default - I am claiming that this is unfair as the default has to be issued after a break down in the relationship. I claim there was no break down as I was paying an agreed amount over an agreed time and had not missed a payment and had increased my payments annually.

rubyjam

DH & I have been on a DMP for 18 months and have not yet received defaults on 5 of our debts. All are with Barclaycard. All interest and charges had been stopped and our DMP was running smoothly until .... January's statements. All have charged huge interest and late payment fees (don't know why, I always pay my DMP company on time). Our total debt is now back to where we were about 3 months ago

A tiny note at the bottom of the statements say they will default us if we don't pay them the arrears (aka mounting interest charges).

Should I be pleased they are threatening Defaults? Is it best to not pay Barclays the arrears so that they will default us (perhaps just pay them a token £5?) Or should I write to them and ask them to stop interest and try to come to an agreement and sort this out. If it's best to receive Defailt Notices sooner rather than later then surely I should do the former. Not sure though if my DMP company would agree to pay these 5 debts less than the agreed amount while still continuing with the agreed payments to our other debts (who have defaulted us btw). Confused???

Default notices aside, it seems so unfair that they give you hope that you can pay back your debts, you can almost see a light at the end of the tunnel and then they throw it all back in your face as interest charges. The interest is now more than the payments. Seriously should have thrown in the towel 18 months ago and taken the IVA route. Right now ... I can't think of one good reason to even bother trying to pay all this back. Feeling like the last 18 months has been a total waste.

Grrrr :mad: talk about 1 step forward and 2 steps back!

Sorry for the rant at the end.

Jakey410

Thanks for all your advice - I think I will complain to FD in the first instance and ask them to add the default from when I started the DMP. If they are not forthcoming, will take it further. Will let you know how I got on!

flossieflipflop

I just commented on a similar post. I had the same issue with Lloyds TSB adding defaults many years after I had actually defaulted. I was in a dmp and never missed a payment whilst on this plan. I argued the default should have been set when I entered into the DMP as that is when I broke contractual payments. The Information Commissioner states you should not be in a worse position than someone who has never paid. (my argument was if I never paid the default would have been in 2007 and would come off my credit file in 2013, rather than added in 2010 and off in 2016. Lloyds refused, I took it to ombudsman who agreed with me Lloyds refused to follow their advice so it's now gone to the final formal decision stage. I'll let you know how I get on (been with ombudsman for 7 months though!)