Bank Default Notice

luats333

Will keep it succinct and not go over many other mistakes. I am severely disabled because of all these mistakes.
Edited to make it easier to understand,

I thought I was going to miss one payment so contacted nationwide to discuss as I did not want to damage my credit rating.
Nationwide told me that it was no problem and I did nt have to pay anything for the next 6 months.
I then received a default notice.
I complained and they said agreed they had not told me about the default notice. I thought they would revert it but they never did.
6 months later they put a default on my credit file I had no idea about and would have paid the card off had I known about the default.
They then admitted that they also should have informed me of the default they put on 6 months later.


Any help greatly appreciated need some advice!

meer53

Did Stepchange negotiate a repayment plan for you or did you just decide to start paying £1 per month ? A default is automatically applied once you default on the terms of repayment, by paying £1 per month you have defaulted, thats standard procedure at any bank or card issuer.
Terms of payment and default details are usually in your T & C's so you can't really plead ignorance of them. There is no chance your credit file will not be affected by this, whatever you discussed with them.

sourcrates

Hi,

Welcome to MSE.

That's a lot of writing to read.

So if I have read this right, you are complaining about your bank issuing a default notice, is that the gist of it ?

If for whatever reason, you cannot make your contracted payment, then you risk a default notice been issued.
Does not matter if you have contacted said bank to make seperate arrangements or not, if they receive less than the contracted repayment, then after a period of time of such payments, a default is EXTREAMLY likley.

It will state that in your original agreement, but you are correct in that a default notice should of been sent to you.

From what you've said the bank has done nothing wrong here, they may of handled the case sloppily, but essentially I don't think you had cause to complain about a default been issued.

Please tell me if I have missed something here.

patman99

Welcome to MSE.
The intention to issue a default on your credit file is usually buried deep within the notice of arrears letters they send out.

Unfortuanately, there is not a lot you can do as most Banks/Building Societies issue defaults after 6 months of missed payments. Tyhese defaults will stay on your file for 6 years from the date of the last default. So even if you had cleared the outstanding bill, you would still have the original default showing.

luats333

Yes you have missed something but it's a bit complicated.

"If for whatever reason, you cannot make your contracted payment, then you risk a default notice been issued."

I fully agree. The point is they never informed me of the default notice. They admit to never informing me of the default notice. Had they informed me of the potential for a default notice, I would have just paid the payment. However instead they told me I don't have to make any payments for 6 months WITH NO effects at all on my credit rating, no default notice, nothing.

That is the main point.

So it's clear. I contacted them to avoid any damage to my credit rating.
Nationwide stated I did not have to pay anything for 6 months. They did not mention anything about a default notice.
I get a default notice I had no idea about. They then admit it was wrong, I expect everything to be reversed and then have another look at payment options. It never happened, they didn't reverse anything or do anything about it and then just ignored my communications for the next 2 months.

I would not have a default if I had known about a default. I would have paid off the credit card if I had known about the potential default. Nationwide neither informed of a default or potential default and have fully admitted to not informing me of either. They only informed me I did not have to pay anything for 6 months, without any effect on my credit rating.

I would have made the contracted payment. I would have cleared the balance (or most of it) but I had no idea about the default as they never told me about it. (and have admitted not telling me about it)

I know that usually they would tell you about the default, that's the point. Does that make more sense now?

Dobbibill

luats333 wrote: »

[*]21 Dec 2014 - Receive Nationwide complaint response letter - Nationwide agree they did not inform me of default notice and did not contact me to discuss it, give £100 compensation. I accept that they did not tell me about a potential default notice and think the issue is resolved. I think they will remove the default, we have a new discussion and start again. They state someone will contact me. No-one does. They don’t do anything. Everything should have been reset and gone back to before any conversation about the default notice.

The point is they never informed me of the default notice. They admit to never informing me of the default notice.

Is this what the initial £100 compensation was for?
ie wrong information/no default notice.

-taff

luats333 wrote: »

However instead they told me I don't have to make any payments for 6 months WITH NO effects at all on my credit rating, no default notice, nothing.

As far as I can tell from your post, this is exactly what they did. They left it for 6 months, then issued a default notice 6 months later in May 2016.

meer53

OP, you seen to be missing the point, this statement is notifying you of the default :

If for whatever reason, you cannot make your contracted payment, then you risk a default notice been issued.

If you could have paid it off why did you only pay £1 per month ? There's nowhere to go with this, you have a legitimately applied default, you've been compensated for incorrect information, what else are you looking for, because if it's for the default to be removed, thats not going to happen.

luats333

The wording for the initial compensation is a bit odd and i think intentionally misleading. It is for not advising me of a potential default and not contacting me.I thought they admitted to not advising me of the default notice so would remove the default notice and we would then discuss repayments etc. That is what was supposed to happen. However no-one contacted me and they ignore me. I had no idea they had not removed the default notice. They then issued a default 6 months later and then did not tell me about that either. They also offered more compensation because of this as they have damaged my credit rating.

I am not missing the point,

I would have made the contracted payment, had I known there was going to be a default. They admitted to not telling me about the default notice and default. They also admitted to not telling me about the future potential default and offered more compensation. I only paid £1 per month as I was waiting for them to discuss with me a new repayment plan, they did not contact me and made many more mistakes. The default notice/default could have been avoided had they told me about it and discussed it. Even in the complaint letter it is very misleading and they also admit to the letter not being clear.

Had I known about the default notice, and the potential default I would have made the payments. This is the central point people seem to be missing. They told me I did not have to pay anything for 6 months. So I did not pay anything for 6 months, except £1. I was going to pay off the card but was just waiting for them to contact me, as they said they would but they never did. They also admit, in a later letter, to not contacting me and telling me about any of this and therefore are offering more compensation.

They then stated the default should have been applied immediately, ie as soon as 1 payment was missed, and then backdated the default to BEFORE i ever received the default notice.

I understand now, what the correct sequence of events should be. I also understand that you know the correct sequence of events. The correct sequence of events did not happen. However at no point did they tell me about the default notice, or the potential default. They also admit to not telling me about the default notice, and then much later upon further investigation admitting that they should have told me about the default notice and the actual default. I could have made the payments, I didn't because they told me I did not have to make the payments for 6 months without any consequences.

I also understand it can be confusing.

So to re-iterate.

I don't know if I can make a payment. I miss one payment.
I am told I don't have to pay anything for 6 months. Nothing about a default notice.
I complain when I receive a default notice.
They do not investigate properly. They finally do investigate and admit they should have told me about the default notice. They then state they will contact me again to discuss new repayments.
They never contact me to discuss new repayments.
I am waiting for them to contact me as I want to pay off the whole credit card but I think I have time to do it as they will contact me.
They then still do not contact me and then state they will contact me 6 months later and there will be no more contact until then. ( I have no idea why)
6 months later I get a default on my credit file I have no idea about.
Much later they I make more complaints and they realize they are very wrong and admit they should have contacted me about the default as well and should have advised me of the default. They then backdate the default to before I ever received the default notice.
They admit their complaint letters are also unclear and that I should have been advised in the very beginning that I could have made a payment to avoid the default notice and are offering more compensation which I have not accepted.

The issues here are the timing of the default, the legality of the initial default notice.

I think this is going to be too confusing to explain. Thank you for the help anyway.

sourcrates

To be honest, its like the plumber not telling you your kitchen will flood if you dont turn off the taps, the same principle applies to missed credit agreement payments, if you dont make your contracted payment, you will eventually get defaulted.

Any form of debt management, involving lower payments, can lead to further action by the creditor.

The information is freely available on the internet, in copies of the lending code, even letters about missed payments from your bank would of warned of "further action", and it would be clearly stated on your credit agreement.

Unfortunately ignorance of the law is no defense, any court will tell you that.

I sympathize with your situation, the bank did mess up by not following correct procedure, but as previously said, thats why they offered you the compensation.

However, they seemed to be unsure of when the default should of been applied, and the contradictory statements made to you did not help, the initial 6 month payment break should of been honored, giving you a chance to catch up, but its always at the creditors discretion to default an account or not.

Have you received a Final response from your bank about this ?

luats333

Sorry but I disagree. Many legal mistakes have been made which no-one picked up on but it is very complicated to explain.

I was also told to IGNORE the letters about arrears by the bank. Again this is very complicated.

To anyone reading this. Check the default notice, the timing of the default and talk to a solicitor.

it's ok thank you for trying to help anyway.