Default Removal - Strategy

DefaultRemoval101

Hi everybody.

I am going through a default process currently with American Express. I have had a previous default removed for a £3 phone bill when I moved from Orange to EE and they didn't tell me about my outstanding balance. It took a lot of persistence, but you have to push the right buttons and speak to the right people.

The one with Amex is due to loosing my job in 2016 February. I was in communication with them and was told that if no payment was made by June 2016 28th - I'd just loose card privileges.... Then come October - having received no summons of default, a default was placed on my file, a full 4 months later.

All communication with AMEX in this time was met with a stone wall of default - however, I was told I WOULDN'T go to default and likewise - I was back in work and could have paid in the intervening months.

I think a decent chunk of the responsibility lies with me, however, there is no harm in trying and there is also some responsibility for AMEX to follow as the process looks wrong to me. Likewise, if all else fails, hopefully they will fast forward the default to an earlier month as it currently sits 10 months post 'last payment'.

I have submitted a formal complaint and was met with resistance that the default was correct.... This is where most people stop, but I decided not too. So I got in contact with the head of customer services for American Express UK. I commended her staff for being excellent and gave some brief details into my case. She passed this on to senior executives for review. It is not an ongoing complaint and having spoken to their department I am awaiting a call back.

My advice so far would be.... Be polite, be articulate and thankful as I have had my issue sped up through the ranks, had the head of their customer service division thank me for writing to them to commend their staff, I've had emails at 6am from people trying to help me get my case resolved.

For timelines, I submitted a formal complaint Monday and I'm already through most of the barriers - I'm actually now with a team who can legitimately make the change. I am about 50/50 on weather I'll have a positive resolution, but based on my prior communication with Orange my strategy does work.

With Orange I was told no, over and over, so I wrote to the CEO and before you knew it, it was dealt with. You have to be smart and you have to be persistent. There is no guarantee I will get a positive result with AMEX, but I'll go hell for leather before I give up. I will write letters to CEO's and I have the direct contact details now of a head of customer service - someone I will write to in person should there not be a positive resolution.

I really would like to help anybody else who's having issues with having a default removed. I'm also happy to supply summaries of my calls/emails and letters to help others.

Likewise, my advice would be, take a deep breath and think and plan before you send/call/do anything. You only really get one shot at getting it removed and one wrong turn really can make a serious negative impact. Be careful with what you say and put the onus on them to prove that your wrong in your assertion that they have made a mistake!

Any questions at all fire away, and I'll be sure to keep the post updated for anybody interested.

[Deleted User]

Everyone’s situation is different.

You’re also advising people to get out of default when it is entirely their fault - where have morals gone?

AFAIC your default with Amex stands

DefaultRemoval101

Hi thanks for the comment.

Couple of things:

1. I'm not advising people to get out of default when it's their own fault - as you said yourself - everybody has a different situation. Rather than putting me down and stating I'm doing wrong - a constructive comment would be more appreciated.
2. As far as you are concerned - thankfully, you are not the authority or the body who makes such decisions. I don't believe my default is a representation of the handling of my account and actually the feedback I've had from those within American Express seem to side with me.
3. Do you have experience with removal of defaults, have you ever had a default? If not, I suggest you find a better use of your time than trolling default message boards looking to gloat and look down at others who have had problems in the past.

AFAIC - You should look to be constructive rather than outright derogatory. It is not a moral issue - plus if the world ran on morals it would be a horrible place. If you had a default next to your name you disagreed with, would you simply accept it or try and fight it.... I think we both know the answer to that!

Thanks

Willing2Learn

Whilst I don't agree with !!!, I do think morality is relevant to the discussion as there are many people who feel it is a matter of honour and ethics that they stick to the terms of their agreement. I do not belong to this group of people and instead believe that everyone should use the rules and guidance to their advantage...

System

Willing2Learn wrote: »

I do not belong to this group of people and instead believe that everyone should use the rules and guidance to their advantage...

You do realise that both parties can do this? No doubt you don't complain when you're on the receiving end of this belief?

sourcrates

Willing2Learn wrote: »

Whilst I don't agree with !!!, I do think morality is relevant to the discussion as there are many people who feel it is a matter of honour and ethics that they stick to the terms of their agreement. I do not belong to this group of people and instead believe that everyone should use the rules and guidance to their advantage...

Tarambor wrote: »

You do realise that both parties can do this? No doubt you don't complain when you're on the receiving end of this belief?

The words "Morality", "Ethics" and "Honour" don`t sit well with me when disgussing financial institutions, the only lenders worthy of such titles, in my humble opinion, are Credit unions, who actually do take an ethical and helpful approach to lending.

Defaults can have a very hard impact on you, especially if your looking for new borrowing, I would like to see the company concerned look at the reason for default, rather than the actual non payment, somethings are out of our control.

And its still true today, the more noise you make, the more likley you are to get a positive outcome.

DefaultRemoval101

Thanks for all comments above.

In my eyes, the following is my 'impression' - I am in no ways endorsing that I'll be successful and people have a right to an opinion that I won't be or shouldn't be - but be constructive in your criticism. Cynicism is quite unhelpful.

1. No arrangement was made to enter into any repayment plan. I was told my card would cancel if I didn't pay by 28th June 2016, 29th June I was 'issued' a summons of default. Amex made no attempt to contact me other than with a letter (which I do not recall receiving - although I've made it clear to AMEX this is not my argument and accept a letter could have been sent (providing they can prove this)). No phone calls, nothing to set up an arrangement.

2. They waited 4 months to apply a default - in this time I could have made reasonable attempt to pay the debt and having contacted them several times, I was met with firm 'we are no longer dealing with this debt - it's been passed to DCA'.

3. I was not offered a full and final settlement figure by AMEX to stop the default, nor when paid, was I offered any leverage against the default.

I was not at the registered address as I was in London for a period of time looking for work, in order to pay back this balance. AMEX were fully aware of my situation and had been kept updated throughout, so they cannot plead ignorance.

I am being incredibly polite, persistent and resourceful to try and have this removed. Some may say I deserve the default and I reserve people the right to believe that. However, the point of this was not to argue if I deserve it, it was to give others hope and provide updates for how I have managed to successfully/unsuccessfully have a default removed.

Any questions at all, please let me know, or if anybody needs any more information.

Thanks

spadoosh

I got a default through fraud, it took 6 months to remove. It meant we couldnt buy the house we wanted as it sold in that time.

I actively seek out threads to do with defaults to help those who have genuinely had them applied incorrectly.

Yours just wasnt. Your trying to get out on a technicality that was given to you by a call centre operative who you knew was mistaken.

3 should be in the letter in 1. If you didnt get the letter (you probably did) youve got grounds to have the default removed. If it didnt contain settlement information to avoid default you should be able to get it removed too.

2 doesn't really matter that much as 1 and 3 are the important things. It might help putting the date earlier as itll drop off sooner but it wont help in removal.

Willing2Learn

Tarambor wrote: »

You do realise that both parties can do this? No doubt you don't complain when you're on the receiving end of this belief?

On the contrary, I am a stickler for policies, rules, guidance and legislation being consistently adhered to. I am always satisfied when companies act correctly. I just like to ensure that companies apply their policies consistently, and with due regard to any applicable guidance and legislation.

DefaultRemoval101

Okay, so by way of an update:

American express applied the default on the 16th October.

Through searching my emails, I agreed a payment date with the collections department of the debt collection agency of the 13th of October.

Now I have emails from the 6th October and phone records (having spoken to AIC who were the debt collectors) - that confirm I requested the payment be made on the 17th as I wasn't sure I'd be paid on the 13th. All I was advised was that the DD may not cancel, but payment on the 17th would be acceptable. (This payment was made and I asked it to be the 17th due to not being 100% if I'd be paid the 13th Friday or the Monday 16th).

Now, having reviewed my old online bank statements, AIC tried to take the direct debit from my account on the 11th of October - 2 days before the agreed date.... Interestingly, my salary was paid on the 13th so any direct debit that would have been scheduled for that day WOULD have been successful.

Having contacted AIC - they told me that after the DD was unsuccessful, they reported to AMEX that I hadn't paid. At this point then, AMEX registered a default, even though payment was received on the 17th and would have been received on the 13th if AIC had correctly taken the DD from my account.

So.... now, do people think I have a strong case? I have contacted American express and they have requested these documents, which I will be sending through shortly.

Thanks for any response.

[Deleted User]

TL;DR - I got a default that I don’t want or I feel was unjust so I’m going to kick and scream and throw my toys out the pram to get it removed.