Natwest Default

GB4DEA

Hi everyone hope I can contribute to your community and vica versa hope you can help me out

I have two seperate issues with a default from Natwest, first being I didn't receive any default warning and second one is the default was registered four months after they had passed to the DCA

The debt is related to my Natwest current account and was passed onto an external DCA "Moorcroft"

Received exit letter from Natwest Sept 2016 giving 60 days notice to close account and pay any debt associated with account, in my case it was my overdraft facilty

Contacted Natwest Oct 2016 to arrange payment and was asked if I was paying in full or instalments, to which I replied I would rather set up a payment plan, I was then asked to contact them again after the 60 days had expired to arrange!

After 60 days had expired contacted Natwest again and was given the contact details for the DCA "Moorcroft"
Started monthly payment plan Jan 2017 until last payment was made Nov 2017

Nov 2017 received discharge letter from Natwest saying all debt satisfied and account now closed

Applied for a morgage in March 2018 and was declined
Checked credit file on Equifax and Experian, default registered end of April 2017 by Natwest

Raised first complaint March 2018 and stated that I unfairly received default with no warning and if I had been informed I would have made alternive arrangments to pay in full within 60 days notice

They replied " I have spoke to our recoveries department who have confirmed that your account defaulted correctly in Dec 2016, also we are not oblidged to send you a Default notice or formal demand, therefore there has been no bank error"

Unfortunately I was unware of the 6 month rule and contacted the financial obursman in Oct 2017, he informed me he could investigate but only with their permission as 6 months had passed since final response, he suggested it may be more benefical to set up a new complaint

Nov 2018, contacted Natwest and complained they had unlawfully sold my debt on four months before registering the default, Natwest apogised and promised they would contact the credit reference agencies and amend default date, they also offered me £100 compensation which I have so far declined

Contacted financial obursman this week and they have asked Natwest for permission to investigate the first complaint, but will definately investigate the second more recent complaint

I've also received my SAR from natwest and checked it word for word, no mention at any stage via any correspondence of default warning

Does anyone think its worth going down the legal route and taking them to court ?



!

[Deleted User]

No. FOS are more consumer oriented that the courts, and NatWest don't appear to have done anything wrong.

GB4DEA

How have they not done anything wrong ?

Under the Consumer Credit Act 1974
Is it not against the law to sell a debt on before registering a default ?
Also surely any credit agency has to issue a default warning before they register one, not an expert in this field, but im sure this is in the Consumer Credit Act as well ?

[Deleted User]

No, it's not against any law to sell a debt on, whether defaulted or not.

They can rectify it by sending you a default notice now, but that would give the default a more recent date. You want it as old as possible.

crispy99

I actually successfully removed my default from Natwest by arguing the notice said “I may get a default” rather than “a default being placed”. Honestly I just called them up, think I spoke to the department that deals with closed accounts

crispy99

My Investigation

My understanding of your complaint is:

• You are unhappy that the initial resolution letter did not address why you were not sent a Default Notice.

• You are unhappy that the closure letter did not mention that your account would become defaulted.

Having reviewed the information held by the Bank in connection with these issues, I can confirm that the initial resolution letter did comment about the issuance of Default Notice because in scenarios where the Bank makes a commercial decision not to offer a customer banking facilities, we do not issue Default Notices. I am sorry if this was not explained to you initially.

With regards to your second issue, in the course of my investigation, I can see that the closure letter issued to you in March 2015 mentioned that if your debt at the time was not repaid within the time scale advised in that letter, the Credit Referencing Agencies would be notified, however it did not mention anything about a Default being registered on your Credit File.

I have raised this matter with our service improvement team and have been advised that at the time the 60 day letter was issued, that information was not on it, however it has now been revised. In light of the above, I am agreeing with this issue.

As a result, I have requested that the Default registered on your credit file be removed and replaced with unpaid data. Please allow up to 21 days for this request to be completed across all 3 main Credit Referencing Agencies.

System

Nice post crispy99 however just for confirmation that is an internal company process, not from the FOS?

crispy99

Yes this is internal from Natwest

sourcrates

GB4DEA wrote: »

Nov 2018, contacted Natwest and complained they had unlawfully sold my debt on four months before registering the default, Natwest apogised and promised they would contact the credit reference agencies and amend default date, they also offered me £100 compensation which I have so far declined

Hi,


Which law is it that you are basing that assuption on ?


Well i`ll tell you, there isnt one, i`m afraid banks can sell debts as and when they please, defaulted or not, its all written into the agreement you consented too.


You may have grounds to get the default date changed, as it should of been earlier in the process.


I would snap there hand off at £100 as its about as much as will be offered.

GB4DEA

Thanks for all your feedback everyone

so reading the comments, am I right in assuming this debt is not regulated under the Consumer Credit Act ?

What I'm struggling to get my head round, is the fact that I was not informed in the closure letter that I would receive a default if payment was not made in full within 60 days, how was I to know if nobody informed me ?

Also nothing in my terms and conditions for my Natwest Select account in relation to this matter

[Deleted User]

The question is have you paid the debt that you know you owe?