Invalid Default - Do I have a case?

The_Offside_Rule

Hello all,

I've been working hard over the past two years to rebuild my credit standing as I got into debt and was naive in my late teens.

Anyway, I have 7 defaults on my file. The first was registered in August 2009, so that may not cause me much of an issue now.
The bulk of the defaults are from March 2011. I've been paying them all off consistently.

I set up an arrange to pay with MotorMile Finance in November 2012, and had not missed a payment with them. I started receiving letters from them saying that I am not paying. I contacted them to say that I have etc. It turns out that when they gave me the payment instructions, they gave me the wrong reference number, which actually belonged to a lady in Gateshead.

Bearing in mind that I'd set up an Arrange to Pay on November 3rd 2012, they then registered a default against me on December 1st 2012.

Surely this is out of order as I have totally lived up to my agreement?

I have contacted Experian and they gave me the standard "We are investigating line."

So I'm looking for advice here! Thanks all. :money:

Morrow1984

I have an similar issue with BT. I was billed after cancelling and only discovered it after checking my credit report and finding a default. I am in the process of disputing it with them.

My understanding is that you can only have a default removed if it was registered incorrectly. It seems obvious to me that an administrative error on the part of the creditor, which then results in a default, fits this category.

As far as i'm aware you will have to take this up with the creditor, as it is their responsibility to update you records (and records they share with third parties). You may want to remind them of their legal duties under the data protection act if they start trying to fob you off.

Good luck.

happy_bunny_2

When did you start to miss payments/pay much less?

Have a read of this:
https://forums.moneysavingexpert.com/discussion/3172602

Buzby

No - the default is correct as it reflects the original agreement, not the alternative arrangement following difficulties. So no error, or entitlement to removal.

Morrow1984

The OP clearly states that creditor error was the cause of the misses payments.

rdf1988, i presume once they discovered this issue they simply credited these payment onto your account? I don't understand why you then had to set up an Arrange to Pay? Surely you just corrected the account reference on your payments and everything was fine from that point on? Sounds like there is something missing here tbh.

The_Offside_Rule

Basically it seems that they thought I had 'defaulted' on my deal with them, after saying that I'd pay them £5 on the first day of each month.

Of course, I was making payments but to somebody elses' account as that is the one they supplied me with.

Also, I have evidence of the error on their part in the way of emails.

bengal-stripe

rdf1988 wrote: »

Basically it seems that they thought I had 'defaulted' on my deal with them, after saying that I'd pay them £5 on the first day of each month.

But the £ 5 per month was not the original deal, but a subsequent arrangement as you were not able to comply with the original terms (which was presumably more than £ 5 per month).

Then you have defaulted on the original agreement.

The_Offside_Rule

But it seems that they only defaulted the account when they thought that I broke the agreement with them.