Virgin Money Ignoring CCA Request and Generally Messing Me Around

Toddy2

Hi All,

Welcome any comments or thoughts on a situation I have....

I'm currently in a DMP which started in June 2019 through Stepchange was originally £60k I'm now down to £45k.  I decided to go self managed in September 2021 where I CCA'd all my creditors and have done a couple of full and final offers on some of the smaller debts.  Part of my reasoning for going self managed was to get a credit card account with Virgin Money (formerly a Yorkshire Bank credit card defaulted) as it's continued to be marked as missed or arrangement to pay on my credit file.  I have complained to Virgin and Yorkshire Bank but they will not default the account, I'm awaiting a decision from the FCO.  Note: I have not made any payments since September 2021.

I sent my CCA request to Virgin Money on September 2021 which they responded to in October:

Please find enclosed the original or certified documents you sent us.  This has been sent back to you because we have been unable to locate your account and/or record with Virgin Money (I've double checked and I did put down the correct reference number).  

So then in November I received a letter from Yorkshire Bank terminating my agreement:

We have previously (they have not) sent you a Notice of Default under section 87 of the Consumer Credit Act 1974, which set out the ways in which you had breached your agreement and the action you needed to take to avoid termination of your agreement and other enforcement action.  
As you have not cleared the arrears on your account we are terminating your agreement with immediate effect and require repayment of the full outstanding balance.  Please note this does not affect any temporary arrangement which we may have agreed.  We may take legal action against you to recover these amounts, which could increase the amount you owe us.  Alternatively your account may be transferred to a Collection Agency who will be responsible for collecting the sum owed for the Bank.

I replied to Yorkshire Bank asking them to clarify the situation and confirm the default date date, along with whom I should send my previous CCA request to.  In response I received a letter from Virgin Money acknowledging my complaint and will respond in due course.

Subsequent to this my credit file has continued to be marked with missed payments from September, November, and December with a DMP flag added in December.  The account is reported on one credit reference agency as Yorkshire Bank and Clydesdale Bank on another.

Any thoughts please, at the moment I'm not paying and waiting a reply.

Thanks all,

sourcrates

Well your file has to be marked in some way, guidance suggests a default can be added after between 3-6 missed contractual repayments, but a creditor does not necessarily have to comply with that guidance, however it is considered unfair to the debtor not to default under those circumstances.

You say you have complained to Virgin money, have they issued a final response ? if so what was it ?

I don`t know who the FCO are, do you mean FOS (Financial ombudsman service) ?

You cannot escalate a complaint to the FOS until a final response is received from the lender.

As for the CCA request, which is a different aspect to this entirely, if they don`t respond with what they should, then the account remains unenforceable in court until such time as they do respond in the correct manner.

So your account is currently unenforceable.

Toddy2

You say you have complained to Virgin money, have they issued a final response ? if so what was it ?

I don`t know who the FCO are, do you mean FOS (Financial ombudsman service) ?

You cannot escalate a complaint to the FOS until a final response is received from the lender.

As for the CCA request, which is a different aspect to this entirely, if they don`t respond with what they should, then the account remains unenforceable in court until such time as they do respond in the correct manner.

So your account is currently unenforceable.

Thanks sourcrates

Response from Virgin:
We are unable to default an account unless it meets certain criteria in terms of days past due and a default letter having been issued, without these the account cannot default.  Also a payment arrangement will prevent an account defaulting.

Sorry Yes FOS

With regard to the CCA that's my understanding too, but it seems to have been ignored with a termination letter after my CCA request, and the continued marking of my credit file - which is my biggest concern.  Whilst I would be happy to continue to pay if they can confirm the CCA, what's concerning me is the continued marking of my credit file for the last 2.5 years I want to start rebuilding my file.  Are they allowed to continue to mark the file whilst it's unenforceable? 

sourcrates

Pretty much, yes.

All unenforceable means is they cannot obtain a judgement against you in court, they can still report to your credit file, and if the account does not meet their criteria for default, then so be it, but they could default you if they wanted too.

Only option now is the FOS.

Toddy2

Thanks again, sourcrates.  I'll await the FOS findings.