How to go about having default potentially removed

wm2860

Hi all,

I have a default from May 2018 for several thousands on a Barclaycard. I basically ignored everything associated with the account until last year as I had no money, but when I got a new well paid job last March, I was able to start paying it back.

Now the debt, which has been sold to Hoist is 2/3 paid back.

I have since been advised to challenge the default. Basically, I took the Barclaycard out when I was a student in about 2013, and it had about a £500 limit, which was raised to £650 a few months later. In my later years at university, I was struggling to pay the bills and requested an increase to my card of several thousands, which was instantly auto-approved. Given I'm posting on here, I don't really need to finish how that story ended.

I have written a letter to Barclaycard using the debt camel template, with reasons why I think there is an issue. But the debt has been sold to a 1/3 party, and I'm only 6 months away now from finishing payments to clearing it.

Obviously, Barclaycard enacted the default, but it's now in Hoist's name. Does this affect anything. Do any correspondance only go to Barclaycard. If by some chance an appeal for refund or default removal is successful, who would remove the default. 

Thanks for any advice.

[Deleted User]

What are your reasons for a refund or the default being removed?

You say you're still paying the debt off, so it seems unlikely you'll have overpaid.

If you believe the debt to be incorrect, write to the current owner of the debt.

eskbanker

Unless there's something massively significant that you're not sharing, there's no reason to believe that the default would be revoked so I think that the actual mechanics of doing so will remain hypothetical....

GeordieGeorge

Your credit file is supposed to be a factual record of how you have managed your accounts, and it seems that you did default, so it’s not clear why the default should be removed.

It’s going to have less effect as it ages, and will drop off your file completely after six years.

adamp87

If you were successful it would be Barclaycard. They would contact hoist. Barclaycard are horrendous at times when you read comments elsewhere and on the debtcamel page you refer too. So i wouldn’t hold out much.

After 6 years from the date it will leave your file, paying it off and settling will look better for some lenders but the major damage has been done already.

I don’t think you are jumping on a bandwagon, increasing a students account by thousands when the creditor should be making checks on the account history, income , debts and credit file before doing so and have a duty not to lend to someone who evidently can’t afford it.

You would need to probable source old bank statements and such for evidence in case you have to go to the FCA/ombudsman if you don’t agree with their findings. They’ll ask for things like that to see what your situation was actually like. 

However there’s also the other side, whilst they should do these checks and stuff, at the same time if you weren’t informing them of any problems there’s also onus on yourself here and the default for now is correct.

If they find in your favour of irresponsible lending normally they’ll remove the entry on your credit file outright. But again it’s a big ask.

good luck!

sourcrates

OP, lenders have a responsibility to make sure you can afford repayments, your situation as you described it, may not have been compatible with that analysis.

You are free to make that complaint, however, don`t expect default removal to be a part of any redress, you can of course ask for this, but it only happens in certain specific circumstances.

Your complaint should be addressed to Barclaycard, as they issued the default, make sure you remind them that as the original creditor it is down to them to investigate this complaint, and they have usually, an 8 week time frame in which to provide you with a final response.

Make certain they know you are aware of this, otherwise they will just refer you to Hoist.

Also make your complaint in writing, it carries more clout, and gets to the right department.

A quick message to Hoist informing them of this dispute, should hold collection activity for the time being.

And for everyone`s information.........these forums are consumer based, and driven, and are designed to be of help to people that find themselves in difficult situations, any advice given should be of a helpful nature, and not be designed to be derogatory, or judgemental, basically if you can`t post anything helpful, then don`t post at all, it just puts people off using forums, thank you.

[Deleted User]

sourcrates said:

OP, lenders have a responsibility to make sure you can afford repayments, your situation as you described it, may not have been compatible with that analysis.

You are free to make that complaint, however, don`t expect default removal to be a part of any redress, you can of course ask for this, but it only happens in certain specific circumstances.

Your complaint should be addressed to Barclaycard, as they issued the default, make sure you remind them that as the original creditor it is down to them to investigate this complaint, and they have usually, an 8 week time frame in which to provide you with a final response.

Make certain they know you are aware of this, otherwise they will just refer you to Hoist.

Also make your complaint in writing, it carries more clout, and gets to the right department.

A quick message to Hoist informing them of this dispute, should hold collection activity for the time being.

And for everyone`s information.........these forums are consumer based, and driven, and are designed to be of help to people that find themselves in difficult situations, any advice given should be of a helpful nature, and not be designed to be derogatory, or judgemental, basically if you can`t post anything helpful, then don`t post at all, it just puts people off using forums, thank you.

Thing is, it's not a loan. It's a card. Them increasing the limit didn't force the OP to spend on it and not pay it back, OP could simply have declined the limit or not used it. Responsible lending rules now aren't retospective and there is nothing to indicate any wrong doing by the lender - if OP had a limit of £650 and was managing it, them increasing the limit at the OP's request is not irresponsible.

Things like payday loan sharks and such are a legitimate problem and deserve to have to pay back as a result of predatory lending. Someone choosing to spend more than they could afford rather than addressing the issue (e.g. not asking for the well publicised financial hardship help) is irresponsible borrowing, not lending.

Moreover, the default is a factual statement of record, the OP did default on his account, there is no reason to remove the default

sourcrates

Deleted_User said:

sourcrates said:

OP, lenders have a responsibility to make sure you can afford repayments, your situation as you described it, may not have been compatible with that analysis.

You are free to make that complaint, however, don`t expect default removal to be a part of any redress, you can of course ask for this, but it only happens in certain specific circumstances.

Your complaint should be addressed to Barclaycard, as they issued the default, make sure you remind them that as the original creditor it is down to them to investigate this complaint, and they have usually, an 8 week time frame in which to provide you with a final response.

Make certain they know you are aware of this, otherwise they will just refer you to Hoist.

Also make your complaint in writing, it carries more clout, and gets to the right department.

A quick message to Hoist informing them of this dispute, should hold collection activity for the time being.

And for everyone`s information.........these forums are consumer based, and driven, and are designed to be of help to people that find themselves in difficult situations, any advice given should be of a helpful nature, and not be designed to be derogatory, or judgemental, basically if you can`t post anything helpful, then don`t post at all, it just puts people off using forums, thank you.

Thing is, it's not a loan. It's a card. Them increasing the limit didn't force the OP to spend on it and not pay it back, OP could simply have declined the limit or not used it. Responsible lending rules now aren't retospective and there is nothing to indicate any wrong doing by the lender - if OP had a limit of £650 and was managing it, them increasing the limit at the OP's request is not irresponsible.

Things like payday loan sharks and such are a legitimate problem and deserve to have to pay back as a result of predatory lending. Someone choosing to spend more than they could afford rather than addressing the issue (e.g. not asking for the well publicised financial hardship help) is irresponsible borrowing, not lending.

Moreover, the default is a factual statement of record, the OP did default on his account, there is no reason to remove the default

Understand all you have said, 100%.

My point is, the OP has the right to complain about an issue he thinks may affect him.

Myself, and MSE believe they should be able to do this without been vilified by others.