Default Notice 7 years into a payment arrangement

DebtHurricane

D3xt3r5L4b said:

DebtHurricane said:

I’m fighting them at the moment myself. I set up a payment arrangement after some missed payments and then realised it’s better for accounts to be defaulted. I cancelled the payment (had only made one payment) and have missed over 7 months of payments yet they still refuse to default. 

They say they’re reporting an accurate reflection, but it’s so unfair. I’m taking them to the ombudsman 

Why? To make yourself look better? You were in debt and on a payment arrangement and they are therefore accurately reporting the account status.

Alright Gary how’s it going  

it’s not accurate if they’re saying I’m making payments under a payment arrangement when I haven’t made ANY payment for 7 months. 

D3xt3r5L4b

So ask Lowell to remove the default and continue with the payment arrangement 

SpreadableToast

Malkytheheed said:

SpreadableToast said:

They also don't need to send a default notice to sell a debt on, who told you that? Creditors are free to sell a debt on to anyone at any time.

Nonsense. By that reasoning anyone not paying the full amount on their credit card but still keeping their account in perfect standing and never missing a payment could suddenly have the amount randomly sold to another company. Not true. 

Of course it's true.  So companies aren't allowed to sell on their assets now?  (a debt is an asset you know)

There have been examples in the past of companies who have just decided a particular market isn't for them and have sold their loan book onto someone else, all perfectly legal. Others have gone bust and their customer base was bought by another company.  Lloyds bought MBNA, which is in practice no different to the debts being sold to them.  And who buys it is irrelevant, so a DCA could, in theory, buy up a companies credit card accounts if they wanted to.  It's unlikely to happen as it isn't remotely their area of expertise but there is nothing to stop it happening.

kaMelo

Robyn45 said:

kaMelo said:

Surely the default date is almost irrelevant, the AP marker will be present until the final payment is made + 6 more years.

No it’s 6 years from default even if unpaid or still in an arrangement. The entire record gets deleted from date of default. 

An arrangement to pay is an active account and continues to be reported as such until it's either paid off or you stop paying in accordance with the arrangement. Then and only then does the six year countdown begin. 
You're worrying about a possibly unjust default but the real damage is being done by the AP and as long as you continue to keep up payments in accordance with the arrangement to pay, the AP marker will be present long after the default.
To default you actually have to stop paying.

Robyn45 said:

D3xt3r5L4b said:

They have to reason to default the account since you entered a payment arrangement.
If you then stopped making payments on that arrangement they would have defaulted you.

I didn’t stop making payments. I made every agreed payment and still do - over 10 years now. They had no fair reason to default 7 years later. Lowell who bought the debt had already agreed to continue with the payment arrangement as it stood and 3 years on, still accept the £20pm. 

As you have stated, you've kept up your end of the bargain and made every payment in accordance with the agreement you made. This would appear to make the default unjust but as I said, it's not the default that should worry you it's the AP.  
As nic_c said earlier, even though it's counter intuitive to do so, the best course of action is to default first and then make an arrangement to pay.

Trying to get a potentially dodgy default  removed whilst keeping up an arrangement to pay is a bit like being concerned about how the deck chairs were arranged on the Titanic.

JamoLew

I suspect someone got fed up with receiving their £4500 at £20 a month over 10 years - it doesn't seem conceivable that you haven't been  able to afford an increase in payment over this long