First Direct not issuing Default

Debtdunce

2 years ago I lost my job. Shortly after I was diagnosed with severe depression and anxiety. During this time I stopped paying both my First Direct credit card (c.£1,600) and First Direct loan (c.£24,000). I also stopped paying a number of other outstanding debts, all of which were put into default 3-6 months after the last payment. I'm getting back on track now and have settled almost everything I owe, except for First Direct. Even after two years First Direct haven't issued defaults on either account, they just show as 6+ months overdue. Had a default been issued then these two accounts would have fallen off my credit report in 2024, however, as they just show as late they'll continue to be on there for years after that. Has anyone else ever experienced this before? How do I get the accounts defaulted so that I can have a chance at settling and getting a mortgage in four years time?

fatbelly

All you can do is ask.

Guidance says they should issue a default after 3-6 months of below contractual payments

I finally found the document I wanted:

https://secureservercdn.net/160.153.137.210/mb9.87b.myftpupload.com/wp-content/uploads/2021/05/Principles-for-the-Reporting-of-Arrears-Arrangements-and-Defaults-at-Credit-Reference-Agencies-version-2a-final-updated-to-refer-to-GDPR-and-DPA-2018.pdf

Carrot007

If you are crrently paying then they will not do anything.

However send a proper compaint and they may well. I did this to the HSBC side years ago and they did change it (which meant no defauly as I was doing clean up after 6 years). They also sent me around £100 at the start of the year for being so bad in handling it at the time.

Debtdunce

Thank you both. No, I'm not currently paying. I'll submit a formal complaint. 

jools1985

I complained to Marks and Spencer credit card for the same issue. Every month they wrote to me telling me I was behind with my payments and threatening to default me. I always wrote back to them asking them to default me then complaining that they hadn't issued a default but were reporting late payments for 24 months (I was and still am in a DMP). After 2 years they did issue a default. I asked them to backdate it to 6 months after it should have defaulted. They wrote back and said they were following their own guidelines and they wouldn't backdate. I complained to the Ombudsman who agreed with me. M&S then backed down and said they would backdate after all. They also sent me a cheque for £50 as compensation (I didn't ask for compensation). My credit report is not showing any backdating of the default yet but iy has only been a month or so. I'll give it another month to update then I'll write to M&S bank again. 

It may take you a while but stick at it.

JamesyMac

jools1985 said:

I complained to Marks and Spencer credit card for the same issue. Every month they wrote to me telling me I was behind with my payments and threatening to default me. I always wrote back to them asking them to default me then complaining that they hadn't issued a default but were reporting late payments for 24 months (I was and still am in a DMP). After 2 years they did issue a default. I asked them to backdate it to 6 months after it should have defaulted. They wrote back and said they were following their own guidelines and they wouldn't backdate. I complained to the Ombudsman who agreed with me. M&S then backed down and said they would backdate after all. They also sent me a cheque for £50 as compensation (I didn't ask for compensation). My credit report is not showing any backdating of the default yet but iy has only been a month or so. I'll give it another month to update then I'll write to M&S bank again. 

It may take you a while but stick at it.

Jools. Did they ever backdate this for you?