Default

Lhtec

Hi

I’m after some advice about a default notice Link financial have added to my file.

Long story short this relates to a credit card I had with coop bank. For a variety of reasons I forgot to pay a small £70 balance off. I have no issues in paying this.

However coop loaded the account with about £40 fees for missed payments prior to transferring it to Link on 23/11/17.

Coincidentally on 29/11 I contacted them as the card didn’t work. This was the first time I had learnt about a problem with the account. It transpired the bank had not updated my address when I moved over theee years earlier. They dispute this.


I offered to pay the outstanding balance there and then but not the fees. This was refused as the account was with a debt collection agency. The bank wouldn’t tell me which.

I complained about not changing my details and was robbed off. A further complaint about not dealing with it properly was also white washed. This is now with the FOS on appeal.

Important point here is at no time did coop register a default or even mention sending a default notice or any other documentation to my old address or otherwise. Despite requests I have still not even had a statement.

By February I was in dialogue with Link. I offered them the same
Principle amount but told them I continued to dispute the fees charges. They decided to treat this as a complaint! And have me a meaningless response. I wrote back reiterating my offer which was acknowledged as another complaint. This however was not dealt with and no response to my written offer provided. Equally despite a lot of letters asking for payments there has been no formal demands or threats of action.

Link now refuse to correspond with me hiding behind their complaint outcome letter. This is also subject of complaint to the FOS.

Having read the ICO guidelines it seems the motivation behind link not accepting any payment is to preserve their ability to register a default as if they accepted the principle all that would remain is the fees which the ICO discourages the use of default for.

What is clear is that no default was registered or contemplated by the coop. I understand that once the debt is sold it becomes the property of link. It seems logical that they also inherit any responsibilities ie the issuing of default notices and registration Therof.

As I have said other than the basic chasing letters I have received no relevant correspondence from them.

It seems plain that it is Link who have made the decision to register the default given the 10 months between their ourchase of the debt and their registering the debt.


My view is that they should have had to issue a default notice in these circumstances particularly as non receipt of documents is
At the heart of it.

This has the feel of the disproportionate use (6 years sanctions for a disputed £40) of a default as a means of blackmailing me to pay fees that are disputed and should,in my view anyway, be to determined by the small claims court?

As I say I do not and never have disputed owing something but my main concern now is getting this default removed.

Thoughts and advice gratefully accepted.

[Deleted User]

No one is blackmailing you.

Do you have proof you changed your address with the bank?

They are not obliged to issue a default notice and if they did it would have gone to your old address since it wasn’t updated.

The same with the DCA - they would use the address provided by the bank as correspondence.

To me the default seems fair, regardless of how “little” the amount owed.

PixelPound

You could wait until they issue you with a claims form, the costs and fees are fixed but in relation to how small the debt is will increase it a while, then their is interest at 8% from the date of the default until the date the claim issued. Then have your day in court.

The fees are not blackmail, many companies will use DCA to try and recover debt initially before they decide to sell it on, these costs are added to the balance.

You could contact link and make a settlement offer of the original debt minus the fees, they may accept, they may not.

If they have sold it on, then coop no longer own it and would simply pass on any payments you made

Lhtec

Gary

Thank you

No direct evidence - however I only had 4 credit account at the time and experienced no issues with them which leans towards them not doing their job as opposed to me not telling them.

So in your opinion it’s acceptable not to send important documents again once move of address and non receiptn is an issue?

Link were fully aware and corresponding with me at my address 8 months before they registered the default without notice and whilst it was still under appeal to the FOS.

Lhtec

Nic

Sorry if it wasn’t clear. The fees were added by the coop before the debt was sold. My issue is with the coop adding them.

I have made several offers to repay the principle amount from the moment I learnt of it. But I’ve been clear I won’t pay fees arising from the banks error. Link have ignored all these offers. No rejection or negotiation. Just ignored.

I take what you say about the court papers but in reality are they going to try and go that far for £40. I doubt it. From a business perspective it would be far more sensible to accept the £70 as this this would be set out to a court as having already being made.

This is why I say the use of the default is blackmail not the fees. At the very least the effect of a default in relation to £40 is totally disproportionate particularly if I can’t get this removed and it hampers me for 6 years.

[Deleted User]

Could they go for a CCJ for the sake of £40? Yes of course they can

is the default and fees unfair? No as it would be in the T's and C's for the bank when you signed up with them

Is it blackmail? Again, no.

If you don't want it "hampering you" for 6 years, just pay it and be done with it

Lhtec

Gary

So what benefit is there in paying it and move on as you so righteously suggest?

From what I read this default remains on file for 6 years whether I pay it or not?

Suggest you look up the definition of blackmail.

Unwarranted demand - fees your not entitled to
With menaces - well put a false marker on your account even though the issue is still to be decided
With a view to causing a loss to another - you won’t get credit until you pay us fees a court wouldn’t award us. Loss = future pecuniary advantage and material loss of fees.

Still think it isn’t blackmail?

[Deleted User]

It's not blackmail. Stop calling it that because you feel hard done-by.

Does your contract the Co-Op state that if you miss any payments etc. then charges will apply?

Yes it will remain for 6 years, but a cleared/settled default, whatever the value, looks better than one that's unpaid.