Default Dates

jackjones01

I previously had some financial difficulties and I’m trying my best to clear them down. I never made contractual payments for 6 months then I set up a payment arrangement.

However, I wondering when account falls into arrears with no payment when actually should the account be defaulted. 

I had an account with Tesco’s however they haven’t defaulted me until 2 years later.  If anyone could offer any advice this would be much appreciated. 

Stepchange and the likes of suggest accounts should default within 3-6 months of not making the contractual payment. 

sourcrates

That is the guidance yes, you can use that in any complaint you may wish to make in future.

jackjones01

sourcrates said:

That is the guidance yes, you can use that in any complaint you may wish to make in future.

That’s great I wrote to one lender about it and they say a payment arrangement was set on the hope I’d go back to contractual payments which prevented a default being issued so I logged a complaint with the FOS yesterday. 

ThisnotThat

jackjones01 said:

sourcrates said:

That is the guidance yes, you can use that in any complaint you may wish to make in future.

That’s great I wrote to one lender about it and they say a payment arrangement was set on the hope I’d go back to contractual payments which prevented a default being issued so I logged a complaint with the FOS yesterday. 

Damned if they do, damned if they don't.

If they'd defaulted you and you'd quickly returned to regular payments you'd probably be complaining about that too.

<Insert havingcakeandeatingittoo.gif here>

adamp87

ThisnotThat said:

jackjones01 said:

sourcrates said:

That is the guidance yes, you can use that in any complaint you may wish to make in future.

That’s great I wrote to one lender about it and they say a payment arrangement was set on the hope I’d go back to contractual payments which prevented a default being issued so I logged a complaint with the FOS yesterday. 

Damned if they do, damned if they don't.

If they'd defaulted you and you'd quickly returned to regular payments you'd probably be complaining about that too.

<Insert havingcakeandeatingittoo.gif here>

If the card mentioned is similar to the Tesco card it’s fair to say 2 years is a long time and after a few months even a year it’s likely the payments will never be made back to the same level.

People are unaware of the long term financial effect a default can have so I think it’s fair enough for Op to challenge the date & see what happens. I understand what you are saying but on the flip side he/she potentially has also been punished.

A-  A customer who chooses not to make any payment will be defaulted if not straight away in 3-6 months. Default will drop in 6 years.

B- OP who agreed a payment plan to pay back the debt doing what for many is the right thing isn’t defaulted for 2 years after person in A.

jackjones01

ThisnotThat said:

jackjones01 said:

sourcrates said:

That is the guidance yes, you can use that in any complaint you may wish to make in future.

That’s great I wrote to one lender about it and they say a payment arrangement was set on the hope I’d go back to contractual payments which prevented a default being issued so I logged a complaint with the FOS yesterday. 

Damned if they do, damned if they don't.

If they'd defaulted you and you'd quickly returned to regular payments you'd probably be complaining about that too.

<Insert havingcakeandeatingittoo.gif here>

Thanks for the feedback however I was never going to be able to bring the account up-to date in a timely manner and they where aware of this. 

[Deleted User]

3-6 months of missed contractual payments is the guideline for a default, 2 years is excessive if you were defaulting. Asking them to default / backdate the default to that time period is only fair, though they don't have to do it.

jackjones01

Deleted_User said:

3-6 months of missed contractual payments is the guideline for a default, 2 years is excessive if you were defaulting. Asking them to default / backdate the default to that time period is only fair, though they don't have to do it.

Thank you they are saying it’s because a payment arrangement was set up that’s why it wasn’t defaulted. I have been paying them £1.00 for over 2 years and they’ve now sold it on recently so the default date was been recorded as March 2021, but I have been paying them £1.00 and still do. 

adamp87

For me if you’d been paying say a lot more than that it would be harder to argue but a £1…

Complain staying the reasons and see what they say. I think it’s a bit harsh to be fair.

[Deleted User]

jackjones01 said:

Deleted_User said:

3-6 months of missed contractual payments is the guideline for a default, 2 years is excessive if you were defaulting. Asking them to default / backdate the default to that time period is only fair, though they don't have to do it.

Thank you they are saying it’s because a payment arrangement was set up that’s why it wasn’t defaulted. I have been paying them £1.00 for over 2 years and they’ve now sold it on recently so the default date was been recorded as March 2021, but I have been paying them £1.00 and still do. 

A default is when you miss a contractual payment - which is what a payment arrangement is. You'd probably do better writing to them and explaining the impact on your credit file that this decision has and request they reconsider

ThisnotThat

jackjones01 said:

ThisnotThat said:

jackjones01 said:

sourcrates said:

That is the guidance yes, you can use that in any complaint you may wish to make in future.

That’s great I wrote to one lender about it and they say a payment arrangement was set on the hope I’d go back to contractual payments which prevented a default being issued so I logged a complaint with the FOS yesterday. 

Damned if they do, damned if they don't.

If they'd defaulted you and you'd quickly returned to regular payments you'd probably be complaining about that too.

<Insert havingcakeandeatingittoo.gif here>

Thanks for the feedback however I was never going to be able to bring the account up-to date in a timely manner and they where aware of this. 

Unless they had a crystal ball or a Delorean they were not aware you were not going to bring the account up to date.