Default regulations?

marv19

Hi,

I would need some advise on this one:

I'm an Experian member and have been for a while, though I only check in once a year or so and when I want to apply for anything. A couple of weeks ago there was a little of a suprise...

It turns out that a current account I had with Barclays since 2006 recently went default, but because of account fees (the account wasn't free, it costs £6.50 a month).

I had sent them a letter about 2 years ago that I would like to close the account and made a payment to pay off a small overdraft (£150) as per the last statement I had from them. It now turns out that they have no record of the letter and the account gradually went into the red which I only noticed last month when wanting to look into a better mortgage deal. Then the account was listed as "delinquent", and I made immediate payment for what was outstanding (£98), and called them, though they didnt want to speak to me as the account had now been closed (in June 2013).

Now I had not changed my address with them, because I was under the impression the bloody thing is closed. :mad:

Oddly enough an investigation in a Branch showed that they had listed me as "gone away", and hence of course could never have sent a default notice.

I'm now about to write to their customer services department, to start a paper trail and try and get this default removed.

Any tips on what to put in there? Is it even legal to default an account that went into arrears because of account fees? Is it worth asking for the default notice letter?


Cheers!

rizla_king

I remember reading somewhere that for current accounts and overdrafts there is some exemption in the Consumer Credit Acts that means they do not have to send a formal default notice. And of course they only have to send you a notice warning that a default will be put on your credit file if you were never warned that might happen in the account terms, which is unlikely.

Banks also do not have to keep copies of those notices, even if they were sent.

You best bet is probably disputing the cause of the default. In so much that they should have closed the account when requested. taking it to the FOS if required.

happy_bunny_2

Maybe send them a subject access request. Should list any letters sent, although you are very unlikely to get any content.

Also give you a definitive history of the account including any statements they hold.

Tixy

The ICO guidelines registering defaults and on sending out a notice of intention to file a default (and they are just guidelines) are detailed on this thread - ICO Guidance - Filing defaults with credit reference agencies (sections 32 to 37)

As rizla says bank account / overdraft isn't covered by the consumer credit act so whilst the guidelines are relevant the requirements of the consumer credit act in relation to filing a default are not.

Did you move address at just the same time you wrote to ask for the account to be closed? So never received any later statements or letters from them after thinking you had closed the account and before you moved?

A subject access request sounds like it could be a good starting point.