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Default help - Capital One

Soph1988
Posts: 71 Forumite
Hi,
Basically, I did a DRO approx. 8 years ago. About 3 years whilst still in the DRO I took out some further credit cards with the plan to use them and improve credit rating, one with capital one and another with aqua.
For a variety of reasons (about to be relationship breakdown, then homeless, and then job loss) ended up putting about £2500 across three cards. Because of the order of the storm of rubbish that came at me, I ended up unable to meet the minimum monthly payments on the cards. I did manage to get another job but on a considerably lower wage and it was either rent or credit card... and so I called both Aqua and Capital One to ask what I could do (if anything) BOTH companies offered me a long term repayment plan after going through my income and expenditure and told me in no uncertain terms that no default would be issued as long as I kept up my repayment plan and I have stuck to this since (2016 to present!).
My DRO has since dropped off my credit record and after realising me and accessible credit didn't go hand in hand, I've not applied for anything since and have just left it at that and kept to my long term payment plans as agreed.
My issue now is Capital One. Aqua have stuck to the arrangement and have 'payment plan' marked on my credit record, with no default.
Capital one on the other hand have applied a default from starting the payment plan, despite them assuring me this wouldn't take place. I had no awareness of this, no correspondence from them since setting up the plan and was totally unaware.
I've tried talking with them an explaining this, they are adamant they sent a notice back in 2016 by 1st class post - I didn't get this, I've had no statements and no communication from them since other than me calling them once to give them my new address. I pay a small amount each month and I'm aware that the debt was likely still at around the £900 mark and so haven't even had the need to request a statement. Had I known default was the route they were going to go down, I wouldn't have entered the plan in the first place, it was purely that I was struggling and they OFFERED the option of the long term payment plan with seemingly no default consequences. Aqua also offered this and have stuck entirely to the agreement we had, even after selling my debt off to someone else!
They are stating that because it was applied in 2016 and they posted me a letter and default notice there is nothing they will do to remove it. I never received this letter and haven't had anything from them, despite them always having my correct address. They have advised I need to go to the financial ombudsman as a next step.
Could anyone advise on how I go about appealing this? Is there a letter template I should be sending? Is the financial ombudsman a route I go down here? Is there anything I can do?
Basically, I did a DRO approx. 8 years ago. About 3 years whilst still in the DRO I took out some further credit cards with the plan to use them and improve credit rating, one with capital one and another with aqua.
For a variety of reasons (about to be relationship breakdown, then homeless, and then job loss) ended up putting about £2500 across three cards. Because of the order of the storm of rubbish that came at me, I ended up unable to meet the minimum monthly payments on the cards. I did manage to get another job but on a considerably lower wage and it was either rent or credit card... and so I called both Aqua and Capital One to ask what I could do (if anything) BOTH companies offered me a long term repayment plan after going through my income and expenditure and told me in no uncertain terms that no default would be issued as long as I kept up my repayment plan and I have stuck to this since (2016 to present!).
My DRO has since dropped off my credit record and after realising me and accessible credit didn't go hand in hand, I've not applied for anything since and have just left it at that and kept to my long term payment plans as agreed.
My issue now is Capital One. Aqua have stuck to the arrangement and have 'payment plan' marked on my credit record, with no default.
Capital one on the other hand have applied a default from starting the payment plan, despite them assuring me this wouldn't take place. I had no awareness of this, no correspondence from them since setting up the plan and was totally unaware.
I've tried talking with them an explaining this, they are adamant they sent a notice back in 2016 by 1st class post - I didn't get this, I've had no statements and no communication from them since other than me calling them once to give them my new address. I pay a small amount each month and I'm aware that the debt was likely still at around the £900 mark and so haven't even had the need to request a statement. Had I known default was the route they were going to go down, I wouldn't have entered the plan in the first place, it was purely that I was struggling and they OFFERED the option of the long term payment plan with seemingly no default consequences. Aqua also offered this and have stuck entirely to the agreement we had, even after selling my debt off to someone else!
They are stating that because it was applied in 2016 and they posted me a letter and default notice there is nothing they will do to remove it. I never received this letter and haven't had anything from them, despite them always having my correct address. They have advised I need to go to the financial ombudsman as a next step.
Could anyone advise on how I go about appealing this? Is there a letter template I should be sending? Is the financial ombudsman a route I go down here? Is there anything I can do?
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Comments
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I would stick with the default as it only has 4 years before it drops off.
The payment plan will be visible for 6 years after it ends.
Try to get aqua to also change theirs to a default.0 -
Surely a default is worse than a payment plan? When applying for credit the usual sentence is 'do you have any defaults in x years', not have you been in a payment plan? Is it not worth arguing to get it removed entirely?0
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Surely a default is worse than a payment plan? When applying for credit the usual sentence is 'do you have any defaults in x years', not have you been in a payment plan? Is it not worth arguing to get it removed entirely?
All of the above are signs of financial weakness and even if it is not stated on the lender's website, a payment plan showing could cause them to decline, on the grounds of risk.
The OP should not be rushing to have them removed, as applying for credit in the near future is clearly not a level-headed choice. There is a reason that defaults etc. are visible to other lenders and that is to make them aware of it in their decision making and to serve the purpose of deterring borrowers from taking on even more credit that they most likely cannot afford.
Unless the default was placed in error, is not accurate or otherwise not in line with the law on the lender's part, it cannot be removed. Only the lender can alter information on your credit file, agencies cannot do this without their consent. If Capital One have declined your appeal, there may be other options to exercise.Advice provided from this account does not consist of any professional knowledge. For professional debt advice, please contact either National Debtline or StepChange. Advice may consist of personal experience, opinion and/or informational sources.0 -
Surely a default is worse than a payment plan? When applying for credit the usual sentence is 'do you have any defaults in x years', not have you been in a payment plan? Is it not worth arguing to get it removed entirely?I work within the voluntary sector, supporting vulnerable people to rebuild their lives.
I love my job0 -
I’m sorry - maybe I’m not getting this and maybe my original posts question wasn’t clear enough.
My question was how I can go about getting capital one to get rid of the default altogether given they did not actually send me anything to say it was being added and have no proof that I ever received such notices. Is this impossible?0 -
I’m sorry - maybe I’m not getting this and maybe my original posts question wasn’t clear enough.
My question was how I can go about getting capital one to get rid of the default altogether given they did not actually send me anything to say it was being added and have no proof that I ever received such notices. Is this impossible?
No, the failure to send a default notice is not grounds in itself for removal of that default.
It can be easily rectified by sending another one, there is no penalty for this under the terms of the consumer credit act.
The default remains valid.I’m a Forum Ambassador and I support the Forum Team on the Debt free wannabe, Credit file and ratings, and Bankruptcy and living with it boards. If you need any help on these boards, do let me know. Please note that Ambassadors are not moderators. Any posts you spot in breach of the Forum Rules should be reported via the report button, or by emailing forumteam@moneysavingexpert.com. All views are my own and not the official line of MoneySavingExpert.For free non-judgemental debt advice, contact either Stepchange, National Debtline, or CitizensAdviceBureaux.Link to SOA Calculator- https://www.stoozing.com/soa.php The "provit letter" is here-https://forums.moneysavingexpert.com/discussion/2607247/letter-when-you-know-nothing-about-about-the-debt-aka-prove-it-letter0 -
Yes. The missing default notice doesn't change the default.0
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