NRAM claim they didnt need to write to me re registering default notice

megandz

Hi everyone

I have a personal loan with NRAM. In 2009 I lost my job and agreed with Nram that I would pay £100 per month to the account instead of the £303 due.

I continued paying this each and every month but obviously arrears grew on the account as I didnt pay the contractual payment.

I noticed that NRAM registered a default on my credit file on 7th December last.

I complained as I didnt receive a notice of default. They have answered my letter of complaint saying that "We did not send you a notice of default letter as we are not required to do so". Is that right?

Also they say "We are sorry that we sent you a formal demand letter dated 1 January 2012 (I think this is a typo as it should be 2013) - this letter should not have been sent as we did not send you a notice of default".

Is there anything I can do? I know my account was in default as I couldnt meet the payments due but it has been in arrears for more than six month for about two years. I said that if they were going to issue default they should have issued it in 2009 when the account actually went into arrears. Issuing it 3.5 years later has suggested that it is only now that my account has been in trouble and that will stay on credit file for six more years.

I have continued to pay the £100 I agreed to. They also said in the letter that that arrangement was not in force but I told the girl on the phone that it was all I could afford to pay. I also told her I had moved outside of the UK but would continue to make payments.

I am aware that I defaulted but my argument is that they didnt register the default years ago and now they registered one without telling me or giving me a chance to rectify the situation. If they had registered the default when the account defaulted in 2010 (three or six months arrears) that would have been equitable. Registering it now without contacting me is simply unfair.

Can I do anything?

Thanks

fermi

Have a careful read of the info in this link.

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

megandz

Hi, thanks for that link

Unless I misunderstood, NRAM should have

1) registered the default when the account was six months in arrears - the first time this happened?

2) should have sent me a notice of default letter before registering the default.

Is there anything I can do now? I accept the account is in default but it would have been fairer to put it into default at the time it first happened.

Tixy

megandz wrote: »

Is there anything I can do now?

Write to them. State the you believe the default was unfairly registered in december 12 and that according to ICO guidelines you feel it should have been registered by x date at the latests.

You might also quote the clause from the ico guidelines that states that someone who makes an effort to pay shouldn't end up in a worse position that someone who makes no effort to pay (or words to that effect) - section 25.

Ask them to amend the date of the default to an earlier date.

megandz

Thank you very much

Will do what you suggest.

ValHaller

megandz wrote: »

Hi, thanks for that link

Unless I misunderstood, NRAM should have

1) registered the default when the account was six months in arrears - the first time this happened?

2) should have sent me a notice of default letter before registering the default.

Is there anything I can do now? I accept the account is in default but it would have been fairer to put it into default at the time it first happened.

Fermi said read it carefully. I have read it myself and while I would agree 1) and 2) apply to sofa credit, it is far from clear in the case of a mortgage that the default has to be applied in 6 months - refer to sections 13 and 14

(BTW fermi, the link to the original ICO guidelines is broken)

megandz

ValHaller wrote: »

Fermi said read it carefully. I have read it myself and while I would agree 1) and 2) apply to sofa credit, it is far from clear in the case of a mortgage that the default has to be applied in 6 months - refer to sections 13 and 14

(BTW fermi, the link to the original ICO guidelines is broken)

Hi

Thanks for responding. I did read it carefully. I just wanted to check my understanding. This isnt a mortgage or HP (sofa) but an unsecured personal loan.

Thanks again