Wrong date on default?

JubilantDoor972

Hi, usually this would be clear cut but I've been reading and have found out it's a little bit tricky with defaults and current accounts / overdrafts.

I have a default from Halifax dated 02/2016 which I believe is wrong.

I got into trouble with them and an overdraft in 2013 to 2014. I struggled to make any progress on this and numerous other debts so I entered into a DMP with StepChange in May 2014. I had around 10 debts total being consolidated. 2 of these debts show default dated of 05 14 which I believe to be correct as that is when it was decided I couldn't meet the agreed repayments and was put on a DMP. These were payday loan and a store card if that is of any relevance.

The account with Halifax was settled and terminated 02 2016. I believe the default date should be 05 14 like my other debts.? I have contacted Halifax via phone and they have advised me that the default date is when a date is settled. I advised him of the info I had found and he told me I was wrong.

Of course I'd like this changing to 05 14 if there is any possibility. Can anyone advise please?

Candyapple

Was it a bank account, loan or credit card with Halifax?

Was it not entered into the DMP along with your other debts?

National_Debtline

Hi JubilantDoor972

A default date is not registered when an account is settled. A default is usually registered when arrears have built to between 3 to 6 months, and it is an indication that the relationship between the creditor and debtor has broken down. However it’s a little different with an overdraft because there aren’t monthly payments due and that means a default could be registered at a later date than you might initially think.

Even when a DMP starts, some creditors won’t register a default and may be happy to show that there is an arrangement in place. But that’s not always beneficial for you as it means the debt is only going to be removed from your credit file 6 years after the account is settled. Had a default been registered the debt would drop off the 6 years after the date of the default.

In your case you could try complaining that the start of the DMP (which I assume Halifax were part of) clearly indicated you had defaulted. Write to Halifax asking them to do this. If they won’t agree you can take your complaint to the Information Commissioner’s Office (ICO). If they do agree, bear in mind the debt and default are going to remain on your credit file for 6 years from the date it has been registered. For example they register the default in 2014, it’s going to drop off in 2020.

Susie
@natdebtline

JubilantDoor972

@Candyapple - Yes, this was also placed on my DMP which makes me think the default date isn't very fair.

@Susie - Thankyou for your response. I will prepare a letter to Halifax to complain about this. Any advice for this letter?

Thanks in advance

National_Debtline

Hi there again

Your complaint letter should give a concise outline of what has happened, what you’re unhappy about and why, and what you would like them to do to fix it. You can mention that you intend to contact the ICO if you are not satisfied with their response. Good luck with it all.

Susie
@natdebtline