Default status after misleading information

DefaultQuestion

Hi All,

As I understand banks and loan providers can put a default status on your credit file right away if you breach the contract, like you are not paying in and on time even if you arrange a payment plan with them, however what is the case if they sending you an email that nope, they wont do that if you setup an arrangement with them, and still they put a default status on your credit record?

Please find the quote:

""*Thank you for contacting Quick Quid, as this time your account is late meaning on your credit it will be reported as a late payment. If the loan is not setup under an arrangement soon, then it will fall into default status and you will receive a collection letter via post advising of possible actions that could take place.”


I asked them to remove the default status since it has been paid of as we have agreed in 3 installments (the original loan was to pay in 3 installments as well, but I asked them If I could pay it off right away in the first month end, they said yes, but I could not so I asked to do the 3 payments rather than the 1.. but in this point they handled it as a new contract which was about 1 installments and not 3..even if we did not sign a new contract...and they handled it as I breach the contract since I did not pay it off right at the end of the first month.. so we agreed I will pay it off in 3 installments ... I saw in their template email that if they do an AP that means they will put default on my file...so I sent them an email if it was true... and they anwsered that it will only be defaulted if we wont do an agreement (as you can see above)

SO we agreed since I was like: Ok, if it wont be reported as default I'm in... and I paid it off in and on time... and I realized that they reported it as a defaulted loan a credit agency

What Can I do? They have mislead me, I would not have had an AP if I would have known it will cause a default status... I would have been able to get enough money to pay it off, rather then having that record on my file... SO my decision based on their answer....

Can I do anything?

Sorry if its not easy to understand what Ive just written. Feel free to ask

So in numbers lets say the loan was £900 and we agreed on 1st September that I will pay it off in 3 installments

30th Sept 400
31 Oct 400
30 Nov 400

But I asked them after couple of days that I want to pay off at the end of the month... so would pay £1000 on 30th Sept...

I was not able to do that so I asked them to do an AP

they agreed I can do that like:

31 Oct 400
30 November 400
31 Dec 400

I said OK, since they said it will be ok. I paid the loan off on and in time.

And they say: Since the original end date would have been 30th Sept... I breach the contract so it is a defaulted account..

Original end date would have been 30th November... so I paid off 31 days later than the original one which I have signed... the 30th Sept was just a try to pay it off quicker but I did not do that...


I hope it is more understandable now

Hanky_Panky

Not sure if I understand your post but simply an AP - Arrangement to Pay is not a Default but equally it's not much better.

Apples2

Why do you think you should not have a Default anyway?

You agreed to pay a sum from the start but you failed to honour it.

Achieving an acceptance from them that you will drip feed a couple of quid at your convenience should be reported to every other lender, which is what a credit file is for.

SnowTiger

DefaultQuestion wrote: »

Hi All,

As I understand banks and loan providers can put a default status on your credit file right away if you breach the contract, like you are not paying in and on time even if you arrange a payment plan with them, however what is the case if they sending you an email that nope, they wont do that if you setup an arrangement with them, and still they put a default status on your credit record?

Please find the quote:

""*Thank you for contacting Quick Quid, as this time your account is late meaning on your credit it will be reported as a late payment. If the loan is not setup under an arrangement soon, then it will fall into default status and you will receive a collection letter via post advising of possible actions that could take place.”


I asked them to remove the default status since it has been paid of as we have agreed in 3 installments (the original loan was to pay in 3 installments as well, but I asked them If I could pay it off right away in the first month end, they said yes, but I could not so I asked to do the 3 payments rather than the 1.. but in this point they handled it as a new contract which was about 1 installments and not 3..even if we did not sign a new contract...and they handled it as I breach the contract since I did not pay it off right at the end of the first month.. so we agreed I will pay it off in 3 installments ... I saw in their template email that if they do an AP that means they will put default on my file...so I sent them an email if it was true... and they anwsered that it will only be defaulted if we wont do an agreement (as you can see above)

SO we agreed since I was like: Ok, if it wont be reported as default I'm in... and I paid it off in and on time... and I realized that they reported it as a defaulted loan a credit agency

What Can I do? They have mislead me, I would not have had an AP if I would have known it will cause a default status... I would have been able to get enough money to pay it off, rather then having that record on my file... SO my decision based on their answer....

Can I do anything?

Sorry if its not easy to understand what Ive just written. Feel free to ask

So in numbers lets say the loan was £900 and we agreed on 1st September that I will pay it off in 3 installments

30th Sept 400
31 Oct 400
30 Nov 400

But I asked them after couple of days that I want to pay off at the end of the month... so would pay £1000 on 30th Sept...

I was not able to do that so I asked them to do an AP

they agreed I can do that like:

31 Oct 400
30 November 400
31 Dec 400

I said OK, since they said it will be ok. I paid the loan off on and in time.

And they say: Since the original end date would have been 30th Sept... I breach the contract so it is a defaulted account..

Original end date would have been 30th November... so I paid off 31 days later than the original one which I have signed... the 30th Sept was just a try to pay it off quicker but I did not do that...


I hope it is more understandable now

Are you sure it's really a Default and not an Arrangement To Pay?

Did you receive a Default Notice through the post?

If it's marked as Arrangement To Pay on your credit file, that would seem correct to me, although a little harsh. You missed the first payment took an extra month to pay it off.

Converting the three month loan to a one month loan, then back to a three month loan has probably muddied the water a bit.

DefaultQuestion

Hanky_Panky wrote: »

Not sure if I understand your post but simply an AP - Arrangement to Pay is not a Default but equally it's not much better.

It is a Default on the file and AP is not there at all... SAtisfied byt defaulted

DefaultQuestion

If it's marked as Arrangement To Pay on your credit file, that would seem correct to me, although a little harsh. You missed the first payment took an extra month to pay it off.

Converting the three month loan to a one month loan, then back to a three month loan has probably muddied the water a bit.[/QUOTE]


It was not a converting, it was just a request for early repayment... I did not sign any new loan... But anyway it is defaulted and not AP... AP would be correct... Btw Default is worse than AP since Default means I did not want to pay it back and did not do it ... AP means I did want to pay it back and I did it... (I paid the sum back 37 days later than the original final date....)

DefaultQuestion

Apples2 wrote: »

Why do you think you should not have a Default anyway?

You agreed to pay a sum from the start but you failed to honour it.

Achieving an acceptance from them that you will drip feed a couple of quid at your convenience should be reported to every other lender, which is what a credit file is for.

Easy to answer : Because they told me so... They told me it wont be marked as default if we arrange quickly an AP...Its in my first post..quoted

nomoneytoday

DefaultQuestion wrote: »

So in numbers lets say the loan was £900 and we agreed on 1st September that I will pay it off in 3 installments

30th Sept 400
31 Oct 400
30 Nov 400

they agreed I can do that like:

31 Oct 400
30 November 400
31 Dec 400

That's one month late, hence the marker.

[Deleted User]

Easy. Formal complaint time. Have you not considered the Financial Ombudsman Service then, if you have it in writing - I am under the impression their getting rid of the 8 week final response wait time for "payday loan" issues shall we say they'll look at anything, hey it may go in your favour! It may even be a CRA problem but don't let that stop you!

Incidentally did you pay any extra for your lateness? (that may be worth considering) as part of the argument... as once upon a time people were charged to have a repayment plan I think you'll find...

DefaultQuestion

nomoneytoday wrote: »

That's one month late, hence the marker.

Yes, a marker for late payment, or marker for AP and not for the default as they advised me so... Dont forget that they sent me in written format, that it will only be a late payment if I agree the AP...

Btw what is happening, that I made a formal complain against the marker and they are investigating it, they let me know that it will take about 5-7 working days

DefaultQuestion

Deleted%20User wrote: »

Easy. Formal complaint time. Have you not considered the Financial Ombudsman Service then, if you have it in writing - I am under the impression their getting rid of the 8 week final response wait time for "payday loan" issues shall we say they'll look at anything, hey it may go in your favour! It may even be a CRA problem but don't let that stop you!

Incidentally did you pay any extra for your lateness? (that may be worth considering) as part of the argument... as once upon a time people were charged to have a repayment plan I think you'll find...

Huhh, I've been here in the UK just for 3 years so I should admit I lost in translation now So what is your advise?

I paid £12 late payment fee