Default on file - possiblity of getting it removed?

SpreadableToast

sambaird said:

Above poster is absolutely spot on... your definition of reasonable will always be what actions TalkTalk didn’t take.

One thing to also bear in mind is that telecoms providers like TalkTalk can place a default without issuing a “Default Notice”. Phone/Broadband contracts are not financial products and don’t follow the same rules as loans/credit cards. All they need to do is mention in their terms and conditions, or any letters they may have sent chasing non payment of bills, that failure to pay may effect your credit file - this is enough of a warning from them. And whilst you say that you gave them updated contact details... you didn’t give them an updated postal address.

To be fair, financial services companies don't need to send default notices to register a default with the CRAs either.  A common misconception.

sambaird

To be fair, financial services companies don't need to send default notices to register a default with the CRAs either.  A common misconception.

Yes they do - moving a financial account into a defaulted status legally requires a default notice to be issued. This is your misconception.

post edited to include a linked source to confirm the above:

https://www.stepchange.org/debt-info/debt-collection/default-notices-and-missed-payments.aspx

SpreadableToast

sambaird said:

To be fair, financial services companies don't need to send default notices to register a default with the CRAs either.  A common misconception.

Yes they do - moving a financial account into a defaulted status legally requires a default notice to be issued. This is your misconception.

A default in law and a default on your credit file are not the same thing.

https://debtcamel.co.uk/debt-default-date/
Specifically at the bottom "Don’t get confused with “Default Notices”"

sambaird

SpreadableToast said:

A default in law and a default on your credit file are not the same thing.

No... they aren’t... but did you miss the section on the step change page linked to above which states:

“If the debt is regulated by the Consumer Credit Act, you must be sent a default notice warning letter and have time to act on it before the default is recorded on your credit file.”

So... financial service providers can only place default markers with a CRA after a default notice has been served and time has elapsed.

MinuteNoodles

Talktalk and other creditors are not required to phone or email you. When it comes to things like debt it is usually done in writing because it provides them the ability to prove that a letter was sent to the named person at the correct address they had on file, something which can't be done with emails.

icecream20

So, good news actually - I managed to get the default removed!

It turned out I didn't cancel the direct debit afterall, and Talk Talk were at fault for not taking the money from my account as they initially said they would. Bank have backed me up and provided evidence of this, the debt has been written off and defaults removed (or in the process, will take some weeks to show).

Hopefully this information might provide helpful to someone else in a similar situation, thanks for all the input!

cymruchris

That’s good to hear you’ve had a positive outcome. If you leave the country again - double triple and quadruple check everything 😁

SpreadableToast

sambaird said:

SpreadableToast said:

A default in law and a default on your credit file are not the same thing.

No... they aren’t... but did you miss the section on the step change page linked to above which states:

“If the debt is regulated by the Consumer Credit Act, you must be sent a default notice warning letter and have time to act on it before the default is recorded on your credit file.”

So... financial service providers can only place default markers with a CRA after a default notice has been served and time has elapsed.

https://ico.org.uk/your-data-matters/credit/

The bank didn’t send me a default notice under the Consumer Credit Act 2006; can they still list a default on my credit file?

In most cases, the answer is likely to be yes, provided that the default recorded is an accurate reflection of events and that when you opened the account you were told (probably in the terms and conditions of the credit agreement) that this may happen. It is unlikely that recording the default, even if you don’t recall receiving a default notice, would breach data protection law.

A ’default‘ on your credit file simply means that the lender considers that the relationship between you has broken down. Therefore, while it may be a requirement of the Consumer Credit Act to issue a default notice, there is no data protection obligation on a lender to issue a default notice to individuals before marking an account as being in default on their credit file.

Further information on filing defaults with the CRAs can be found in the Principles for the reporting of arrears, arrangements and defaults at credit reference agencies. The principles in this document have been drawn up by the credit industry in collaboration with the ICO.

sambaird

Look, I’m not saying what you’ve found is inaccurate - these are all trusted sources... debtcamel, the ICO, Stepchange... however there does seem to be a lot of contradictory information around the subject... this is from Page 6 of the guidance that you linked to:

“The lender must have notified you of their intention to register a default against you at least 28 days before doing so, in order to give you time to make an acceptable payment or reach an agreement with them on an arrangement. This also applies in cases 1 - 3 above. However, in 4 - 5 the lender or provider does not need to provide a notice and can file a default as soon as they become aware of the situation.“

(for anyone not reading the document (4/5 are fraud and bankruptcy)

Look, I’m not a lawyer, so can’t quote the actual law surrounding it... but even the ICO seem to contradict what they say on their website, and what is in the guidance.