IDEM Servicing Default Notices - Advice Please

Bosniavet96

Hello
I have a DMP with Stepchange, & have about 4 1/2 years left at my current payments, & have never failed to make any payments.
One of my debts was a MBNA credit card, which in common with others, has been transferred to IDEM Servicing, & this is where my problem started.
When the debt was transferred, MBNA were receiving £64.00pcm, which was considerably more than the "required" minimum payment shown on the statements I received, but was the amount calculated by my DMP as what should be paid. At the same time, my DMP underwent it's annual review, & as a consequence my overall payment was reduced, meaning that the amount paid to MBNA/IDEM was adjusted downward as were all other payments. I must add that at no point did I sign any agreement with MBNA or IDEM to make fixed payments of £64.00pcm, or any other amount.
IDEM took it upon themselves to state that as my payments had reduced from £64.00, I was in default for the difference, & have issued a Default Notice every month since, whilst happily accepting my payment. When this initially happened, I wrote to IDEM, explaining the situation, & expressing concern that they would make a demand for full payment, which would have sent me straight to the Bankruptcy Court meaning that all my efforts to clear my debts, with the associated austerity lifestyle would have been for nothing. Whilst they stated that I should not worry & they would continue to accept my payment without taking further action, they continue to issue a default notice every month.
My understanding is that each Default Notice remains on rrecord for 6 years, meaning that IDEM's actions will blight my financial record for 6 years after I finish my DMP (taking me well into my mid-50s), & I feel this is unfair. Basically, do I have any grounds to appeal to both IDEM & maybe the FOS in order to have these defaults stop, especially as there was never any agreement that I pay a particular amount?
I know that this situation pales into insignificance when compared to what some other forumites are going through, but this is really affecting me, making me think I would be better to just put a stop to my DMP, go bankrupt, lose my employment & spend the next 5 years or so unemployed - as I live in social housing & have no spare rooms, I would probably be no worse off as regards my bills & grocery spending as I am now.
Thanks in advance.

ValHaller

Just to be totally clear, are you saying

• that you have always paid minimums according to T&C's and that up to present there has been no reason to default you?
• That you are currently paying at least the minimum on statements

Can you please clarify what is the minimum from the statement and how much are you paying now?

It seems to me that if you have complied with T&C's there is no reason to pass the debt to a DCA???

happy_bunny_2

The default notice will stay on for 6 years from when its issued, not from when you finish DMP.

Section in here on this and DMPs:
https://forums.moneysavingexpert.com/discussion/3172602

fermi

What do you mean by issued a default every month?

You are defaulted only once. That shows on your credit file with a "default date".

Then every month until settled the monthly status codes will show an 8 or D for default, but that is not a new default each month. It's just a status update on the original default.

The account, default, status history, everything regarding the account is removed from your credit report 6 years from the original default, no matter anything else.

Bosniavet96

Thank you for you replies.
Having looked at my last MBNA stement (dated 7th February 2012), the minimum payment required at that time was £64.00 & I was then paying £69.70. The minmum amount shown varied from month to month as my balance reduced, I believe it was approximately 1.5% of the balance. As a result of the review of my DMP, the MBNA/IDEM payment was reduced, & later increased slightly following this year's review, now standing at £55.26pcm, which would be just over £9.00 than the 1.5% pcm according to my latest balance.
IDEM send a monthly statement clearing stating each month that I am in arrears & that a Default Notice has been issued, enclosing an information each time which informs me that such a notice has been issued. This leads me to believe that they are issuing a new Default Notice every month.
I am aware that Default Notices are valid for 6 years, & as a result most if not all of my other defaults have expired, but given that I believe IDEM are issuing a new notice each month, this means it will not expire until 6 years after my final payment has been made.
As I say, at no point did I ever sign any agreement with MBNA or IDEM to make a fixed payment of £64.00pcm, meaning I feel that IDEM are unfair to issue a Default Notice in respect of that amount.
Sorry for any confusion caused....

fermi

Leads you to believe? What do your credit files actually show? That is the only thing that matters, not what they write in a letter.

Should be an original default, updated with a D or 8 every month. Everything is removed 6 years from the original.

ValHaller

Bosniavet96 wrote: »

Thank you for you replies.
Having looked at my last MBNA stement (dated 7th February 2012), the minimum payment required at that time was £64.00 & I was then paying £69.70. The minmum amount shown varied from month to month as my balance reduced, I believe it was approximately 1.5% of the balance. As a result of the review of my DMP, the MBNA/IDEM payment was reduced, & later increased slightly following this year's review, now standing at £55.26pcm, which would be just over £9.00 {more? less?} than the 1.5% pcm according to my latest balance.
IDEM send a monthly statement clearing stating each month that I am in arrears & that a Default Notice has been issued, enclosing an information each time which informs me that such a notice has been issued. This leads me to believe that they are issuing a new Default Notice every month.
I am aware that Default Notices are valid for 6 years, & as a result most if not all of my other defaults have expired, but given that I believe IDEM are issuing a new notice each month, this means it will not expire until 6 years after my final payment has been made.
As I say, at no point did I ever sign any agreement with MBNA or IDEM to make a fixed payment of £64.00pcm, meaning I feel that IDEM are unfair to issue a Default Notice in respect of that amount.
Sorry for any confusion caused....

Well the confusion remains - there appears to be a missing word.

Now, let's be clear about this. Did you at any point pay less than the contractual amount? You don't seem to be giving a clear answer ....

If you have at some point paid less, people can look at it and see whether it amounts to a default and if it isn't can also help you get it lifted. But if you have defaulted, you'll have to take the default. You'll get more sympathy for having a default than for making out you have been unjustly defaulted if the default is actually fair.

Bosniavet96

fermi wrote: »

Leads you to believe? What do your credit files actually show? That is the only thing that matters, not what they write in a letter.

Should be an original default, updated with a D or 8 every month. Everything is removed 6 years from the original.

I have never looked at my credit file, maybe I should.

Many Thanks

fermi

I think so, as we can only judge how long the info on it will stay based on what is actually on there. Plus if it is inaccurate, wrongly dated etc, then we suggest how to tackle getting it corrected.

sourcrates

OP states he`s in a DMP, so that means all his accounts will be defaulted, MBNA have sold on his debt, which companies often do just to throw a spanner in the works, as previous posters have stated the "default" will only be registered once, and will stay on your file for 60 months, then drop off, you should check your file if you think they are issuing a new default every month, but I doubt that is the case, If, for some reason, they are doing that, then yes, complain to them first in writing, and if no joy go to FOS, but you need to check your file first and see what's been recorded.

ValHaller

sourcrates wrote: »

OP states he`s in a DMP, so that means all his accounts will be defaulted,

It seems to me that if most of the debt is loans, then credit cards could still be in the DMP and paid over minimum - given that the DMP apportions the monthly payment according to the amount outstanding. Credit card debt always requires a monthly repayment which is lower in proportion to the debt compared to loans. In which case credit card debt would not default until and unless payment is reduced below the minimum. Which seems to have happened in OP's case.