Default on credit file query

TheManOfStraw

Hi all

I had a balance with Very (shopdirect) for £82.37 whereby I had missed the payments for a couple of months and because it was linked to an old address I misses correspondence chasing the debt. I realised early last month about the debt and changed my address to the correct one with them.

On the 31 July when I got paid I paid the full balance of £82.37 to them online and the payment was taken. On 7 August I received a letter saying the account has now defaulted and has been passed to Lowell Portfolio Ltd. A couple days later I received the £82.37 payment back into my bank account.

I now have a default on my credit file. Is this acceptable to default my account after making payment? I rang them and they said I was due to make payment on the 29 July that's why they defaulted. However, I hadn't received correspondence about this and as far as I was concerned the account was settled when I made that payment.

For the record the default on the credit file is dated 24/07/2019 (which doesn't tie in with what they're saying about expecting a payment on the 29th) however that letter dated 7 August 2019 is the first correspondence I had received regarding the matter!

Any advice appreciated.

Thanks

[Deleted User]

Yes if they had already began the process of defaulting the account.

sambaird

1. Pay Lowell the outstanding amount immediately - as you have admitted that you owe the money.
2. Write a letter of complaint to Very setting out the above.
3. Let them investigate.
4. When you receive a final outcome letter from Very, if you are unhappy with the outcome raise the matter with the FOS.

Personally, I think the default is probably not going to be removed - its your responsibility to update lenders with your details, just as it is your responsibility to make payments on time.
When you finally called Very to change your address, did you ask when you needed to make a payment?

If they were expecting a payment on the 29th July, and did not get it, it's likely that it was passed to Lowell in the period before you made payment online - and therefore rightly returned to you.

However, like I say... follow steps 1-4 above and see what the outcome is.

TheManOfStraw

Thanks guys fair comments. One thing I would ask though, is, can they default my account without actually giving me notice they're going to do so ? I don't know- I just thought they would need to give you notice first. Can creditors default accounts whenever they like then, assuming there is a missed payment?

[Deleted User]

Yes they can.
Notice letters etc. are a myth; or at least the “lawful” requirement to issue one is anyway.

boo_star

!!! wrote: »

Yes they can.
Notice letters etc. are a myth; or at least the “lawful” requirement to issue one is anyway.

Not a myth.

https://www.legislation.gov.uk/ukpga/1974/39/part/VII/crossheading/default-notices

TheManOfStraw

boo_star wrote: »

Not a myth.

https://www.legislation.gov.uk/ukpga/1974/39/part/VII/crossheading/default-notices

Hey thanks boostar.

Can I challenge the default on grounds I did not receive notice of default? I have copied dialogue from your link into my complaint letter so kudos to you

boo_star

TheManOfStraw wrote: »

Hey thanks boostar.

Can I challenge the default on grounds I did not receive notice of default? I have copied dialogue from your link into my complaint letter so kudos to you

They could always claim one was sent, especially since they had an old address for some time.

TheManOfStraw

boo_star wrote: »

They could always claim one was sent, especially since they had an old address for some time.

Would the responsibility to prove one wasn't sent lie with me or would they need to prove that one was sent.

Thanks

boo_star

TheManOfStraw wrote: »

Would the responsibility to prove one wasn't sent lie with me or would they need to prove that one was sent.

Thanks

You obviously can't prove one wasn't sent. But if they have an entry on their systems saying one was sent then that's good enough.

I'd also add that default notices are only a requirement for debts regulated by the Consumer Credit Act. I don't know if your agreement with Very is.

boo_star

As a further addition they can still list your account status as "Default" without issuing a default notice. They are two seperate things.

So all you may end up with is the default notice that wasn't sent, but still have the default on your credit file.