Help after debt with defaults

Clear_of_debt_but_.....

Have been a long time lurker here but this is first post. Am not sure this is in the right place because this is debt free wannabe and we are already debt free but hope you good people can offer help and advice.

We were in a massive amount of debt but managed to clear this early 2016, aided by lots of information we read here. Anyway now we are debt free and even have decent savings in the bank, have a couple of small amount credit cards which are paid off in full each month too but it really bugs us that we can't change bank account and now we have come across a problem regarding a security deposit which needs a higher limit than we have on a credit card.

Man of the house thinks we should try to get some of our defaults changed, a lot were applied very late and some companies continued to charge interest even though we had a DMP. He says he's read here that it's possible to get them backdated, sometimes even removed and in some cases, even get some interest back.

Does anyone have experience of this and if so, how did you do it? Do you have a template letter we could try etc?

Thanks for reading and hopefully responding

sourcrates

Hi,

If you have reason to believe some defaults were applied later than they should of been, write to the lender and complain.

A default would normally be applied after 2/3 missed payments, if it was any longer than that, then its likely you were treated unfairly.

I don't know of a template letter for this, but it's pretty simple to put something together from my response.

Creditors are encouraged to suspend interest, but they are under no obligation to do so.

Clear_of_debt_but_.....

Thanks for the response. Only one default was applied that fast, most were over 6 months and one or two were over 2 years. In fact, one debt was sold to a recovery agent with just 2 payments to go and then it was defaulted.

Is there legislation that states the defaults should be applied in this time scale that we can quote? In our debt days, we found lots of template letters online particularly on National Debt Line website, these were very useful but I can't find anything that would help now.

sourcrates

Clear_of_debt_but_..... wrote: »

Is there legislation that states the defaults should be applied in this time scale that we can quote? In our debt days, we found lots of template letters online particularly on National Debt Line website, these were very useful but I can't find anything that would help now.

Yes there is, I'm on my phone so can't search for you, but if you search this link you should find the info on defaults :

https://www.lendingstandardsboard.org.uk

Lending standards board replaced the lending code in July 2016.

Clear_of_debt_but_.....

Thanks again