Argos Card Default

PecrySugden

This is the first time I've posted anything on this forum and would appreciate any help.

This morning I received a letter from Argos. It was a trace letter asking of my whearabouts. Straight away I got on the phone and found out that I owed them £69. Stupidly I hadn't notified them of my change of address (every company but them!). I'd had a direct debit with them in the past. I had assumed that payments were being made but as I'd had a period of inactivity on my account the direct debit was now apparently dormant and therefore cancelled. When I then bought something on credit (for the sake of getting a £10  voucher) my direct debit had apparently already lapsed. Of course I settled the amount immediately and after doing so was told that my account had already defaulted on 26th July and would have adverse affects on my credit rating. I'm 40 and have never missed a payment for anything in my life. My credit rating was excellent and in a few years' time my plan was to buy a house with my new partner  and I'm now worried this will impact our chances greatly. We've a deposit which we're adding to all the time and feel like I've let my partner down over something so silly. I realise my mistakes and asked if anything could be done but they said by law they have to report the default and the onus was on me. Is there anything I can do? TIA  

Carrot007

The time to ask for something was before you paid. Making it a condition of paying, becuase the DD cancelation was not notified to you (email etc)?

However in a "few years" it will not matter much and it is a small amount. Do remember to get a broker who is familier with adverse credit though (this is not a bad thing, they will tell you if you need it and advise the best if a decent broker, I have used such before and I have only paid once and it was £125 as there was no kickback from the company).

PecrySugden

Carrot007 said:

The time to ask for something was before you paid. Making it a condition of paying, becuase the DD cancelation was not notified to you (email etc)?

I wasn't told about the default until after I'd paid. Until that point, it was missed payments. 

Carrot007

PecrySugden said:

I wasn't told about the default until after I'd paid. Until that point, it was missed payments. 

Do see my additional. However. If you recived no notification you may be able to complain. Though only if you kept them updated on the address or it was before the move than the dd was cancelled or some such.

Probably not going to happen?

PecrySugden

Thanks, I receive emails from them outling when my next payment is due and how much and stupid me thought they'd been coming out by DD. I haven't received anything by email to say I was in debt. They said they only send debt notices by post. I did ask for a note to be attached to the default outlining the whole situation. He said I can check this in 30-40 days. I don't know if this will make any difference. 

SpreadableToast

Carrot007 said:

PecrySugden said:

I wasn't told about the default until after I'd paid. Until that point, it was missed payments. 

Do see my additional. However. If you recived no notification you may be able to complain. Though only if you kept them updated on the address or it was before the move than the dd was cancelled or some such.

Probably not going to happen?

The OP doesn't have any grounds to complain about the DD, not least because it would be their bank who canceled it, not Argos.  I've never heard of notifications being sent to for DD's that have lapsed due to inactivity and don't believe banks are required to send out any such notification.

And as the OP changed their address and didn't notify them the lack of communication about the outstanding debt is a non-starter too.

OP, you'll just have to take this on the chin.  As it'll be a "few years" until you're going for a mortgage then a small settled default with a plausible explanation for it going to default is probably not going to cause you any problems, but probably best to go via a broker just in case.

MalMonroe

PecrySugden said:

This is the first time I've posted anything on this forum and would appreciate any help.

This morning I received a letter from Argos. It was a trace letter asking of my whearabouts. Straight away I got on the phone and found out that I owed them £69. Stupidly I hadn't notified them of my change of address (every company but them!). I'd had a direct debit with them in the past. I had assumed that payments were being made but as I'd had a period of inactivity on my account the direct debit was now apparently dormant and therefore cancelled. When I then bought something on credit (for the sake of getting a £10  voucher) my direct debit had apparently already lapsed. Of course I settled the amount immediately and after doing so was told that my account had already defaulted on 26th July and would have adverse affects on my credit rating. I'm 40 and have never missed a payment for anything in my life. My credit rating was excellent and in a few years' time my plan was to buy a house with my new partner  and I'm now worried this will impact our chances greatly. We've a deposit which we're adding to all the time and feel like I've let my partner down over something so silly. I realise my mistakes and asked if anything could be done but they said by law they have to report the default and the onus was on me. Is there anything I can do? TIA  

The fact that you changed address shouldn't have stopped the DD.  In my experience, you have to actually stop the DD yourself for it to not be paid. Changing address shouldn't affect payments of DDs, since payments go from bank to bank, not from your address to a company. Also DDs don't 'lapse' - they just get cancelled. Usually by the customer, so this is all very strange.

As many people advise on this forum all the time, credit scores mean nothing and are not even seen by lenders. Payment defaults, however, are. But if this is your only anomaly and there aren't any other issues, I don't see any major problems down the line. In a few years' time when you're looking to buy a house etc., this should all have dropped off your credit report anyway. I shouldn't worry about it, you're only 40!  If your partner's credit file is squeaky clean at the time you apply for loans, etc., that'll go a long way to helping too. 

I've learned the very hard way (had to have a DRO a few years ago) to check my bank account regularly, including ensuring all DDs and outgoings are up to date and correct. That's what you should do, just to ensure that this kind of thing doesn't happen again. I mean, it was only 69 squids at the end of the day, not even a small fortune. It's wrong of people to try to frighten you by telling you about adverse effects on your credit rating, etc. 

But as I say, try not to worry about it. It's not the end of the world by any means, these things do happen to many of us. Enjoy yourself while you're young, that's my motto anyway! 

SpreadableToast

MalMonroe said:

PecrySugden said:

This is the first time I've posted anything on this forum and would appreciate any help.

This morning I received a letter from Argos. It was a trace letter asking of my whearabouts. Straight away I got on the phone and found out that I owed them £69. Stupidly I hadn't notified them of my change of address (every company but them!). I'd had a direct debit with them in the past. I had assumed that payments were being made but as I'd had a period of inactivity on my account the direct debit was now apparently dormant and therefore cancelled. When I then bought something on credit (for the sake of getting a £10  voucher) my direct debit had apparently already lapsed. Of course I settled the amount immediately and after doing so was told that my account had already defaulted on 26th July and would have adverse affects on my credit rating. I'm 40 and have never missed a payment for anything in my life. My credit rating was excellent and in a few years' time my plan was to buy a house with my new partner  and I'm now worried this will impact our chances greatly. We've a deposit which we're adding to all the time and feel like I've let my partner down over something so silly. I realise my mistakes and asked if anything could be done but they said by law they have to report the default and the onus was on me. Is there anything I can do? TIA  

The fact that you changed address shouldn't have stopped the DD.  In my experience, you have to actually stop the DD yourself for it to not be paid. Changing address shouldn't affect payments of DDs, since payments go from bank to bank, not from your address to a company. Also DDs don't 'lapse' - they just get cancelled. Usually by the customer, so this is all very strange.

As many people advise on this forum all the time, credit scores mean nothing and are not even seen by lenders. Payment defaults, however, are. But if this is your only anomaly and there aren't any other issues, I don't see any major problems down the line. In a few years' time when you're looking to buy a house etc., this should all have dropped off your credit report anyway. I shouldn't worry about it, you're only 40!  If your partner's credit file is squeaky clean at the time you apply for loans, etc., that'll go a long way to helping too. 

I've learned the very hard way (had to have a DRO a few years ago) to check my bank account regularly, including ensuring all DDs and outgoings are up to date and correct. That's what you should do, just to ensure that this kind of thing doesn't happen again. I mean, it was only 69 squids at the end of the day, not even a small fortune. It's wrong of people to try to frighten you by telling you about adverse effects on your credit rating, etc. 

But as I say, try not to worry about it. It's not the end of the world by any means, these things do happen to many of us. Enjoy yourself while you're young, that's my motto anyway! 

There is nothing strange about this.  Banks cancel Direct Debits that have been inactive for 13 months.  Google "Dormancy Rule."

ddonq1412

For a default on that small scale most lenders will take you on as long as it is satisfied, the longer you leave it before applying will also help.

PecrySugden

ddonq1412 said:

For a default on that small scale most lenders will take you on as long as it is satisfied, the longer you leave it before applying will also help.

Thanks, I paid it within minutes of finding out I was in debt. I've asked this to be put on to their notes. I'm going to do an SAR to ensure that this is the case. 

adamp87

PecrySugden said:

ddonq1412 said:

For a default on that small scale most lenders will take you on as long as it is satisfied, the longer you leave it before applying will also help.

Thanks, I paid it within minutes of finding out I was in debt. I've asked this to be put on to their notes. I'm going to do an SAR to ensure that this is the case. 

Just check your file next month :-)

the damage has already been done with the default to be honest. Settling it does add a bit of a better result but the defaults the really killer.