DMP Virgin Money not defaulting me

Toddy2

Hi All,

After a bit of advice please, I started a Debt Management Plan with StepChange in 2019 with 6 years remaining, all going well.  

I have 7 creditors all have defaulted the accounts around the time I commenced the DMP, with the exception of 1, namely Clydesdale now Virgin Money.  They have continued to mark my credit file as missed payments since 2019, with a 6 month gap in 2020 when nothing was reported, then continuing again to report as missed payments.  I raised a complaint with them asking for them to default my account, the complaint is over 8 weeks old, they have sent a letter saying they 4 further weeks to respond as they are awaiting further information?!

In hindsight I should have waited until my account was defaulted before entering in to a DMP.

Any suggestions greatly appreciated.

[Deleted User]

ICO guidance is to default after 3-6 missed contractual payments, if you started missing payments in 2019, it should have been defaulted after no more than 6 missed payments though this is a guideline not a law. I would allow their complaint to finish and then complain to the FOS if they reject it as it does seem unfair to not default given all the others did

ItsComingRome

Deleted_User said:

ICO guidance is to default after 3-6 missed contractual payments, if you started missing payments in 2019, it should have been defaulted after no more than 6 missed payments though this is a guideline not a law. I would allow their complaint to finish and then complain to the FOS if they reject it as it does seem unfair to not default given all the others did

6 months worth of missed payments mind.

[Deleted User]

ItsComingRome said:

Deleted_User said:

ICO guidance is to default after 3-6 missed contractual payments, if you started missing payments in 2019, it should have been defaulted after no more than 6 missed payments though this is a guideline not a law. I would allow their complaint to finish and then complain to the FOS if they reject it as it does seem unfair to not default given all the others did

6 months worth of missed payments mind.

No

It's 3-6 contractually missed payments not 6 months worth of missed payments. You can make a payment but one that is less than agreed and that is sufficient and it should be defaulted

ICO guidance states:

4. If you fall into arrears on your account, or you do not keep to the revised terms of an arrangement, a default may be recorded to
show that the relationship has broken down.
As a general guide, this may occur when you are 3 months in arrears, and normally by the time you are 6 months in arrears.

[source]

Toddy2

Update, received in the post today their decision.  Which is not to accept my complaint and to continue reporting as missed payments whilst I continue with my StepChange payments.
I will now refer to the FOS as this will have a negative impact on my file for 14 years!  Which must be unreasonable.

ItsComingRome

Deleted_User said:

ItsComingRome said:

Deleted_User said:

ICO guidance is to default after 3-6 missed contractual payments, if you started missing payments in 2019, it should have been defaulted after no more than 6 missed payments though this is a guideline not a law. I would allow their complaint to finish and then complain to the FOS if they reject it as it does seem unfair to not default given all the others did

6 months worth of missed payments mind.

No

It's 3-6 contractually missed payments not 6 months worth of missed payments. You can make a payment but one that is less than agreed and that is sufficient and it should be defaulted

ICO guidance states:

4. If you fall into arrears on your account, or you do not keep to the revised terms of an arrangement, a default may be recorded to
show that the relationship has broken down.
As a general guide, this may occur when you are 3 months in arrears, and normally by the time you are 6 months in arrears.

[source]

No, it's 3-6 months worth of payments. The FOS has repeatedly ruled this is the correct interpretation of the guidance.

ItsComingRome

Deleted_User said:

ItsComingRome said:

Deleted_User said:

ItsComingRome said:

Deleted_User said:

ICO guidance is to default after 3-6 missed contractual payments, if you started missing payments in 2019, it should have been defaulted after no more than 6 missed payments though this is a guideline not a law. I would allow their complaint to finish and then complain to the FOS if they reject it as it does seem unfair to not default given all the others did

6 months worth of missed payments mind.

No

It's 3-6 contractually missed payments not 6 months worth of missed payments. You can make a payment but one that is less than agreed and that is sufficient and it should be defaulted

ICO guidance states:

4. If you fall into arrears on your account, or you do not keep to the revised terms of an arrangement, a default may be recorded to
show that the relationship has broken down.
As a general guide, this may occur when you are 3 months in arrears, and normally by the time you are 6 months in arrears.

[source]

No, it's 3-6 months worth of payments. The FOS has repeatedly ruled this is the correct interpretation of the guidance.

You stated 6 months, WRONG. It is three to six contractually missed payments

I searched the FOS case studies for "default" and cannot see a single example, let alone multiple cases which would suggest they rule that "repeatedly". Their newsletter references 117/12 where they "note the ICO guidance of "three months or more in arrears" and 117/13 again three months after the client was unable to meet their contractually agreed obligations

You want to argue the semantics of "missed payments" vs "worth of payments" you can do so to your hearts content, I don't care. Consider yourself blocked

https://www.financial-ombudsman.org.uk/files/213818/DRN9023439.pdf

Not difficult.