Trying to get a Default Removed

Ltd_Company_advice

Hi all,

Looking to see if there is anymore I can do. Basically I am trying to get a couple of Default notices removed from my credit report. Not saying it isn't my fault I just figured if I can get them off then why not.

Basically I sent them a letter which I think is commonly available on the internet which basically says you didn't receive the default notice blah blah.

Now they are all settled account now and Capital one have written back to me saying that because the account is settled and closed then they are under some other legislation not obliged to provide me with a signed copy of the default notice?

Is there anything further that you can do to try and get them to remove it? Because clearly they don't have a copy of the notice.

They have said 'Where there is no sum which is, or will, or become payable under the credit agreement, then the obligation to provide documentation under section 78 of the Consumer Credit Act 1974 does not apply. Therefore, on the basis of the above, we have no obligation to provide you with a copy of the documents that you have requested'

I hate Capital One as well! lol.

Any advice would be greatly appreciated.

Thanks all.

fermi

There is no obligation to provide a copy of a default notice under s78, whether the debt is settled or not.

s78 only covers copies of the credit agreement and a statement of account. Nothing more.

I know the template you refer to, and much of it is wrong.

Ltd_Company_advice

Do you know if there is any particular section or law that a company has to on request provide a copy of this letter when requested to do so?

Whether that account is open or closed?

Curr946

The best way to get a default removed was before you paid in full. You could have negotiated the removal if you had a lump sum to pay. If you paid it up then this wouldn't have been an option.

PS the default if a true reflection of events so you have little to no chance of getting them to take it off, just to be nice.

The_Boss

Curr946 wrote: »

PS the default if a true reflection of events so you have little to no chance of getting them to take it off, just to be nice.

Exactly and if they did remove it would be an absolute travesty.

OneLife_OneShot

I'm trying to get Argos to remove my default as I never even received notice of it as my ex used my Argos card, they are currently looking into it for me.

fermi

Ltd_Company_advice wrote: »

Do you know if there is any particular section or law that a company has to on request provide a copy of this letter when requested to do so?

Whether that account is open or closed?

They are not required to keep copies.

You could do a subject access request, but all that would likely ever reveal is a note to say one was sent·

Ltd_Company_advice

Oh yeah I appreciate it is a true record of events but that doesn't stop people trying!

And I know it's my own fault but I would question that 6 years is probably too long to be held on your record. My financial situation is very very different now to that when I had the defaults recorded. I have no outstanding debts apart from my mortgage and I have quite a bit in savings but because I have defaults recorded from 3 years ago and they won't drop off my record for another 3 years I will still have problems getting a mortgage??!!

It's a nightmare to be honest that you can turn your life around and still be made to pay for it a number of years later when they actually have no relevance to how life is now!

What it tells you is that I had loads of debt, didn't have enough money to pay everything and it took me a while to get out of a hole!

The_Boss

Ltd_Company_advice wrote: »

Oh yeah I appreciate it is a true record of events but that doesn't stop people trying!

And I know it's my own fault but I would question that 6 years is probably too long to be held on your record. My financial situation is very very different now to that when I had the defaults recorded. I have no outstanding debts apart from my mortgage and I have quite a bit in savings but because I have defaults recorded from 3 years ago and they won't drop off my record for another 3 years I will still have problems getting a mortgage??!!

It's a nightmare to be honest that you can turn your life around and still be made to pay for it a number of years later when they actually have no relevance to how life is now!

What it tells you is that I had loads of debt, didn't have enough money to pay everything and it took me a while to get out of a hole!

But the 6 year period is the same for everyone and something you consented to when you opened the accounts and defaulted.

6 years serves as both a consequence for your actions and as a time period to prove to lenders that the problems really are a thing of the past

fermi

https://forums.moneysavingexpert.com/discussion/3172602

Notices of intention to file a default

32 Lenders should tell their customers about filing information with a credit reference agency as part of the account opening procedure, in line with the requirements of the ‘fair processing code’ 4. This explanation will not normally refer explicitly to defaults and will often be distant from the events which cause them. Therefore we strongly recommend that a notice of the intention to file a default should be served. Many lenders now subscribe to trade association codes of practice which require this. This practice helps the transparency of the credit reference process and may even prompt payment, so avoiding the need to file a default at all.

33 Notices to comply with Sections 13.7 of the Banking Code 5 and 7.5 of the Lending Code 6 should provide adequate warning. A notice of intention to file a default can be sent with a formal default notice served under Section 87 of the Consumer Credit Act 1974. Where lenders are not required to issue these notices, they can send an intention to file a default through a final demand, letter or relevant account statement, which should make clear not only the intention to file but also the date of the intended default. The date should allow the customer enough time to respond properly. Lenders who have to provide a notice of intention to file a default under a relevant code of practice should be aware that not complying with the code may be taken into account in any assessment of the fairness of their processing.

34 When a default occurs in line with the criteria in this guidance, and the lender has given the customer 28 days notice of the intention to file a default, then subject to paragraph 37, the lender may supply this information to a credit reference agency despite no advance warning when the account was opened.

35 It may not be necessary to serve a notice on all occasions. We accept there are cases when there should be no doubt over a default, for example, cases:
involving fraud;

• where the lender has been notified under the terms of a bankruptcy or IVA;
• where there has been successful court action or repossession; or
• where a customer has made no attempt to resolve their arrears.

36 We do not believe that on its own a notice of intention to file a default amounts to harassing the debtor. We accept that lenders need to take care in the wording and use of notices to avoid the possibility of harassment.

37 If a borrower fully meets the terms set out in a notice of intention to file a default, it follows that the lender should not file the default.


4 The term used by the Commissioner to describe the requirements of Schedule 1, Part II, Paragraphs 1-4, Data Protection Act 1998. For further explanation see also The Data Protection Act 1998, Legal Guidance, Chapter 3.
5 The Banking Code March 2005
6 Lending Code 2004, The Finance and Leasing Association


Accuracy of a lender’s default records

39 Records

Any default record should be accurate. We normally expect a lender to keep records that are necessary to show an agreement exists and to support filing a default. We would also expect a lender to be able to produce evidence to justify a default record they had placed on a credit reference file. Not having any supporting records may indicate a breach of the data protection principle requiring personal data to be adequate, relevant and not excessive for the purpose for which it is processed.

A record that a notice of an intention to file a default was sent, if not a copy of the notice itself, will help lenders to comply with this requirement.

Ltd_Company_advice

Thanks for posting that it's much appreciated. :-)