invaild default notice

Mojitoman

Hi

Bit of an old chestnut. I have had a default applied to my Credit File however it is invalid (ombudsman agrees!!!). The loan has been passed to the banks recoveries department but I do not believe the agreement has been terminated and passed on to a DCA.

I have read on a number of sites that if the original loan agreement has been terminated then the only debt that can now be recovered is the arrears - as the bank has terminated the account.

So my question is, before the invalid default is escalated with the bank and the default removed, should I try and get the account terminated - i.e, should I stop making repayments in an effort to get them to take further action? Might be a risky tactic, but well worthwhile if successful!!

[Deleted User]

What exactly do you mean by arrears? The full amount is payable.

Obviously if you stop paying, then you will receive a default, which is what you are trying to get removed? Seems an odd strategy.

glentoran99

why is the default invalid as a matter of interest?

Mojitoman

Glentoran - there are all sorts of mistakes and inconsistencies in the notice and nothing matches what the bank have on record. This all stems from the notice not being sent in the first place, when I challenged the bank for a copy they stated the usual 'do not have to retain copies' so I competed a SAR request. When I reviewed the information the default notice date is different to what is held with the CRA and the amounts are different as well. The bank is not able to confirm what the default sums actually were (their own records show different amounts) and they tried to claim late payment fees that had not even been raised until a few days after the notice date! Overall a bit of a muddle. The bank were not able to provide any explanation. I raised it with the. Ombudsman who at first said they were satisfied that the banks records of the notice being sent were satisfactory, but I further challenged regarding all the inconsistencies and they agreed. Still discussing where this goes from here. Hence my aspiration that if the agreement has been terminated and sold to a third party, then as the notice is invalid, there is no claim and no agreement. I will look back at some older posts for the full advice.