Rules for defaults?

Chronos7

My partner has asked me to do some digging today, for evidence to support a phonecall she will make later. The issue we have is that she has a default on her credit file for a credit card, which she is routinely paying a certain amount back each month. The balance was initally 1500 and it's now down to about 800 left so far. She has just discovered that they have recently defaulted her, despite the fact that monthly payments are being made and she has not missed any. Are they "allowed" to do this? I was under the impression that if an repayment agreement was in place and stuck to, prior to the default, then they would not be able to apply the default? Also, there was no notification of intention to default.. no letters, no calls, nothing. This is really bad news for us as we are getting married in July and hoping to get a mortgage in the next 2 years, could really do without a default on there!

Do you guys think there is any wiggle room for negotiation with them to remove the default? i.e offer to settle the full balance if they remove it etc? To be honest, we're that frustrated by it that if they dont have any intention of removing the default, we're inclined to tell them to shove their repayments... I'm sure i've read somewhere that a "Settled" default is just as bad as a "Default" on your credit file so either way, your in pain for 6 years.

Any advice / links would be appreciated.

Thanks

[Deleted User]

Just to clarify - although you say she is making regular payments, did she default on the contractual payments? If so, then a default can be applied.

A settled default will look much better than an unsettled one. One says you had problems and then fixed them, the other says you had problems and couldn't/wouldn't.

If you do decide to tell them to shove their repayments, watch out for a CCJ coming through the door. At least make sure you keep them informed of your current address so you don't miss it. You'll want to settled that within a month of judgement, or you'll have another 6 years with it on your file. That will be much worse than the default.

ashp_2

So there are no late payments markers? Just a default? Comparing statements and payments to to the info held on CRA's will be a good start if this all adds up there has clearly been a mistake.

robber2

"Also, there was no notification of intention to default.. no letters, no calls, nothing."

Unfortunately you will find that they have notified you, it will have been stated in the Ts &Cs she was given when she first signed up for the card.