Payday loan default query

jonova82

In 2012 I foolishly took out a £500 payday loan in order to help a relative. Suffice it to say, as the payment date loomed it became clear that the necessary funds would not be available, and I immediately contacted the company to arrange a repayment plan. The company agreed to the sum being paid in five monthly installments.

Around 2 months after making the arrangement I requested a copy of my credit report, which revealed that while the company had registered my payments, it had also issued a default. While pretty disappointing, I put this down to experience and tried to forget about it - until earlier this week, when an acquaintance received from the company an email titled 'Notice of Our Intention to Register a Default' which states:

"If you have already agreed a repayment arrangement
If you have agreed a repayment arrangement directly with us or through a third party such as a debt management company and you stick to it, we will not file a default on your credit file.

However, if you do not pay the instalments under your repayment arrangement on the agreed date(s), we may file a default 120 days from your original loan repayment date."

This interested me as it seems quite contradictory to my own experience with the company, where a default was issued despite strict adherence to a payment plan (which was arranged up in advance of the original payment date). Additionally, I'm quite certain I never received any notification of an impending default.

Is it likely the company has simply changed its default practices, or is this something that might be worth me pursuing?

Thanks in advance,
J

thebritishbloke

It's probably an administrative error. A quick phone call and a quote of the letter should fix it (provided you have kept to the payment plan).