Is this a default ?

Miss_Marple_2

Hello - I am finally in a position to buy my own house & have applied for a mortgage. In preparation for this, I checked my credit file. I thought all was OK for the last few years, but a catalogue account appears to have a default on it. In 2009, the credit file says 'account defaulted' and is a red circle. I received no paperwork about a default.

I did have discussions with them regarding a CCA ( which they could not supply) and PPI which they just started charging & then stopped after several years without informing me of either. I calculated that the PPI was a large part of the debt and gave them notice that as they could not supply a CCA and PPI should be refunded that the debt was unenforcable. They agreed to stop chasing it but said that they would still report it on my credit file. I informed them that as they could not provide a CCA, they could not report on it, but as this all happened in about 2008, I never envisaged I would be in a position to get a mortgage so was not too bothered.

Sorry for the long post, but the query I have is whether this can actually be an official default given that I was not given any notice of a default from them ?

nicp60

I believe they can - someone will probably be along shortly with much more precise information, but as far as I know they're not legally obliged to send out a default notice.
What date have they put on the default? It will drop off your report 6 years from that date.

Miss_Marple_2

nicp60 wrote: »

I believe they can - someone will probably be along shortly with much more precise information, but as far as I know they're not legally obliged to send out a default notice.
What date have they put on the default? It will drop off your report 6 years from that date.

Thanks nicp60.

I thought that they had to give you notice if they were going to default you. Account is now marked as satisfied, so not sure if my arguing with them will make the situation worse or whether to let sleeping dogs lie.

Tixy

They are not always obliged to send out a formal default notice, the ICO guidanance is detailed here https://forums.moneysavingexpert.com/discussion/3172602
in sections 32 to 35.

happy_bunny_2

They are allowed to report a default.

Have you moved therefore missed any default notice?

Did you follow up PPI complaint?

Send them an SAR and it should say default notice sent on account transactions. If not, complain to get it removed.

fatbelly

Miss_Marple wrote: »

They agreed to stop chasing it but said that they would still report it on my credit file.

It sounds like they did what they said they would do

Miss_Marple wrote: »

I informed them that as they could not provide a CCA, they could not report on it

I don't know where you got that from. Tixy's link is the definitive guide to registering defaults so you would need to quote from that.

matttye

fatbelly wrote: »

It sounds like they did what they said they would do



I don't know where you got that from. Tixy's link is the definitive guide to registering defaults so you would need to quote from that.

CKHalvashi says he has successfully argued in court that creditors/DCA's shouldn't report to CRA's while the account is in dispute, as reporting constitutes part of 'debt recovery activity' as per this OFT guideline:

"k. failing to cease debt recovery activity whilst investigating a reasonably queried or disputed debt when the debtor has, or appears as if he may have, valid grounds for the query or dispute46"

fatbelly

Hmm. There may be a point here. I do remember a press release by the OFT that defined the terms in that sentence. Unfortunately their website appears to be down and so I can't access it at the mo.

fatbelly

OK, got it now. It was press release 44/09 relating to our old friends Mackenzie Hall, who seem to have deleted that paragraph from their copy of the OFT guidance.

They were told:

Debt Collection Activity is defined as:
a) sending debt collection letters;
b) making of debt collection calls;
c) the use of any other medium for the purpose of collecting an outstanding debt; or
d) the acceptance of payments offered against a debt.

and

A debt is considered as in dispute where:
a) it has been reasonably demonstrated that the debt has been previously paid;
b) a request under section 77 or 78 of the Consumer Credit Act 1974 has not been complied with, and this prevents the agreement being enforced without the permission of the court;
c) it is reasonably believed that the debt may have been incurred as a result of identity theft or fraud; or
d) it is reasonably doubted that the person being pursued for the debt is the actual debtor.

so the account is certainly 'in dispute' but anyone who convinces a judge that registering a default is 'Debt Collection Activity' has done well. Unless someone can find it in black and white somewhere.