Defaulted on F & F Settlements as a victim in accident

silburbas

Hello all,

I have read lots of threads about defaults on F & F settlements, but most are situations where the borrower was in debt.

I don't know if my situation is any different, to cut the story short, I was a victim in a bike accident where I was knocked down by a car, resulting me in being off work for 9 months.This happened in October 2013

Early when I knew I will be off for a long time and that my work sick pay was coming to an end in July 2014, I had arranged through my solicitor to arrange interim payments from the car's insurer in which they agreed.

But then it came to a time where the insurer was stopping interim payment in order to try and accept an settlement which was very low. However in the end we did come to an agreement a lot higher, which Ii did not get until December 2015.

Meanwhile in September with funds running low because of no interim payments, I was advised to contact StepChange to deal with the money problem I was forced to have, so we discussed the situation to the creditors in which they all agreed a token plan.

Some of the creditors after a couple months sent a default notice, which I didn't have a clue about, and Step Change advised this was normal practice and ignore them.

Once I got the lump sum from the insurance, StepChange arranged to pay off all creditors with Full and Final settlements of between 40 to 50% and also I was having problems with returning to work due to the effects of the accident (tinnitus) it was unknown if I was able to go back to full time.

Some of the creditor were being slow in accepting the offer, and by March 2015 all of the creditors were paid, which eased my burden and can shift my focus to recovering.

Recently I was trying to arrange a boiler plan, and they rejected me because of credit rating. Having a look at the CRA report, I have found that some of my debts have been marked as partially settled, and some of them have default marked, some of them 1-2 months after settlement have been made.

What I don't understand is why was I defaulted if I was in a token payment in agreement with the creditor and that we agreed a F & F settlement thought StepChange, who has told me to ignore those default notices, which are now having a large impact on my credit file that I was not aware off. I am deaf so communication was an issue to understand all the complex jargon, and I relied on the advise of StepChange.

Do you think as a victim in an accident, and the result of the insurer not paying interim payment in an attempt to get me to reduce lower settlements, and then with F&F settlements made in agreement with the creditor, should be enforced to have default marked?

I have been spotless in the last 10-15 years with repayments and had the highest credit rating score, and it gone rock bottom, and how was I suppose to avoid that?

Any advice would be appreciated.

boo_star

silburbas wrote: »

What I don't understand is why was I defaulted if I was in a token payment in agreement with the creditor and that we agreed a F & F settlement thought StepChange, who has told me to ignore those default notices, which are now having a large impact on my credit file that I was not aware off. I am deaf so communication was an issue to understand all the complex jargon, and I relied on the advise of StepChange.

They have defaulted the account because you failed to meet the contractual payments for several months. Accepting reduced monthly repayments does not override the contractual terms and if you fail to meet them you will be in default. Stepchange were not wrong, you had no option other than reduced repayments which would eventually lead to a default.

Do you think as a victim in an accident, and the result of the insurer not paying interim payment in an attempt to get me to reduce lower settlements, and then with F&F settlements made in agreement with the creditor, should be enforced to have default marked?

Your relationship with your creditors and your relationship with the insurers are entirely seperate. You could arguably make a complaint to the FOS about the insurer but it doesn't sound like a winner, they will argue that they need time to do things, time a bank might not be willing to put up with.

I have been spotless in the last 10-15 years with repayments and had the highest credit rating score, and it gone rock bottom, and how was I suppose to avoid that?

You can't avoid unforeseen circumstances, nobody can. You can mitigate them if you have an emergency fund but ultimately, although you did nothing wrong, the banks didn't either.

"Stuff happens, as they say.

silburbas

Thanks boo-star,

I can understand your point but surely I should have been better explained the consequences otherwise I would have kept some of the lump sum and paid off higher % debts and concentrate paying off the lower ones. It the worse came ie couldn't work then I would have accepted that.

But instead I am left with a damaged credit file, not being able to do small loans and suffer for 6 years. I expect it means I can't buy a car as need to do soon when old one goes.

I understand credit report is based on risk, but with me being better now there is no risk and I do have some money affordable for any loans, so I can't see where the risk I have compared to when u say stuff happens in unforeseen circumstances.

I expect I can't do anything and the lenders aren't going to be understanding and that's unfair.

YorkshireBoy

You may wish to consider adding a notice of correction to each of your 3 CRA files. Heads you win...tails you can't lose!

boo_star

I can understand your point but surely I should have been better explained the consequences otherwise I would have kept some of the lump sum and paid off higher % debts and concentrate paying off the lower ones. It the worse came ie couldn't work then I would have accepted that.

That's an issue with Stepchange, they're still right thought, a default was unavoidable so the best thing to do was follow their plan.

I understand credit report is based on risk, but with me being better now there is no risk and I do have some money affordable for any loans, so I can't see where the risk I have compared to when u say stuff happens in unforeseen circumstances.

Lenders are quite twitchy over defaults. If it was your money, would you be happy to lend to you?

I expect I can't do anything and the lenders aren't going to be understanding and that's unfair.

It's not unfair, please stop using that term.

silburbas

YorkshireBoy wrote: »

You may wish to consider adding a notice of correction to each of your 3 CRA files. Heads you win...tails you can't lose!

What would a notice of correction do and how do lender view on this?

What would it be for ie removing default or just explain situation why became default?

Cheers

silburbas

boo_star wrote: »

That's an issue with Stepchange, they're still right thought, a default was unavoidable so the best thing to do was follow their plan.



Lenders are quite twitchy over defaults. If it was your money, would you be happy to lend to you?



It's not unfair, please stop using that term.

Actually if I look at the bigger picture and look at my clean previous and the situation where became default was unforeseen and that is the same risk with anybody, and that I have disposable income and back in full time work with no medical problem now, I would lend to me!

It just in a couple year we were considering a move too, as we can afford bigger mortgage, but it seems I can't do that for 6 years because of an accident and insurer's greed. Had they kept paying interim payment instead of playing games with the venerable, then I wouldn't be in tis situation which I actually was not aware that I was to be defaulted.

I would accept if partially settled as that has a lighter view than a default.

And hit me while I'm down saying "stop using that term" - it is my view and I'm asking for advice not an argument ;-)

glentoran99

silburbas wrote: »

Actually if I look at the bigger picture and look at my clean previous and the situation where became default was unforeseen and that is the same risk with anybody, and that I have disposable income and back in full time work with no medical problem now, I would lend to me!

It just in a couple year we were considering a move too, as we can afford bigger mortgage, but it seems I can't do that for 6 years because of an accident and insurer's greed. Had they kept paying interim payment instead of playing games with the venerable, then I wouldn't be in tis situation which I actually was not aware that I was to be defaulted.

I would accept if partially settled as that has a lighter view than a default.

And hit me while I'm down saying "stop using that term" - it is my view and I'm asking for advice not an argument ;-)

its still a default though, just a partially settled one, the other ones you mention should partially settled too if you've paid them so contact the companies involved and get that fixed

elsien

[QUOTE/]
I have been spotless in the last 10-15 years with repayments and had the highest credit rating score, and it gone rock bottom, and how was I suppose to avoid that?

Any advice would be appreciated.[/QUOTE]

You can't help having an accident, but the bottom line is still that you weren't able to pay off your debts in full and that was always likely to have an impact on your credit rating through the partially settled status.

A notice of correction is a short statement explaining the background to the situation - I don't know how much difference it would make, that would depend on individual lenders.

glentoran99

What it means is it goes to a human rather than "computer says no"

silburbas

You can't help having an accident, but the bottom line is still that you weren't able to pay off your debts in full and that was always likely to have an impact on your credit rating through the partially settled status.

I agree, but had I know that I would be defaulted, and was explained of the consequenses then I would have done this differently i.e. pay off the higher debts in full and continue paying the remaining until if I cant get to the point if I cannot work anymore. Fortunately I was able to return to full time work after treatment. That's why I feel unjustified, as it is having a knock on effect that could have be avoided.

A notice of correction is a short statement explaining the background to the situation - I don't know how much difference it would make, that would depend on individual lenders.

Ok, I will see if I can do that, as it seems a default is cemented, even if I think it is wrong, i.e. was not explained that will get it or sent default notice.