Date of default or last date acknowledged? 25 January 2022 at 4:36PM in Debt-free wannabe 5 replies 147 views

Chuffysrevenge

Hi all. Apologies if this is in the wrong place

My daughter has been receiving letters from a collection agency about a credit card from a while back and I have a question regarding her credit report.  On her report, the date of default is listed as Jan' 2017. Yet the last payment (Confirmed by her bank) and therefore the last time she acknowedged the debt was in June 2016. Surely then the date of default should be no later than July 2016? Also, which one takes precedence when it comes to the debt being statute barred? Date of dafult or last date acknowledged?

Many thanks.

sourcrates

Cause of action date can be either.

I would go with the last payment date if it were me.

peteuk

A company will go through a debt recovery process before defaulting an account.  This usually can take up to 6 months or more. So even thought she last paid June 16, its not uncommon to find the default Jan 17. 

It will therefore drop off her credit score after 6 years so Jan 22, however depending on which credit score provider you view it may take a month to be visible. 

As sourcrates has said  statue barred can be either.  

fatbelly

Unfortunately Doyle v PRA group 2019 has established the default date as the 'cause of action'

https://www.bailii.org/cgi-bin/format.cgi?doc=/ew/cases/EWCA/Civ/2019/12.html&query=(B2/2018/0006)

An acknowledgement would only make a difference after this date

A default after 5 missed payments is acceptable

sourcrates

fatbelly said:

Unfortunately Doyle v PRA group 2019 has established the default date as the 'cause of action'

https://www.bailii.org/cgi-bin/format.cgi?doc=/ew/cases/EWCA/Civ/2019/12.html&query=(B2/2018/0006)

An acknowledgement would only make a difference after this date

A default after 5 missed payments is acceptable

I was aware of Doyle v PRA Group, however, if claimants used this case as an example, then its not beyond the realms of possibility that, should a default notice not be served, said account can never become statute barred. 

What would happen under those circumstances ?

fatbelly

I think that was pointed out in the original case, and the judge muttered something about the unfair relationships provisions in the Consumer Credit Act.

I'd try arguing that there should have been a default after 3-6 missed payments. I don't know of any case that helps us in that.

I feel the Doyle case was wrong but we're stuck with it.