Default Notice after one missed payment

tandydadder

sourcrates said:

tandydadder said:

sourcrates said:

tandydadder said:

sourcrates said:

Read it again, does it say "default notice", or "default sums in arrears" ?

They have sent me a Default Notice & a Notice of Default Sums

Right, what you have to understand is that a "default notice" and a "default on your credit file", are two very separate things.

Do close brothers report to your credit file ?

I honestly don’t know, they did a hard search on it though. It’s only been 4 days, credit report still good so I’m wondering will it affect my rating next month. Thank you for helping.

I don`t know of any insurance companies that report to credit files, so if they have not been reporting your payments, then no default will show, so there will be no ill effects.

On top of that, any default notice has, by law, to give you 14 days to remedy any breach to your account.

It appears the one you received is deficient, so rendering it non compliant.

All smoke and mirrors, you`ve not been hit by anything, so don`t panic.

Thank you so much. They’re not open until Monday so will have to wait. Really appreciate this.

The_Fat_Controller

@sourcrates I was under the impression that insurance paid by monthly instalments with an element of interest for doing so does count as a credit agreement, therefore late or missed payments may well be reported to CRAs.

sourcrates

The_Fat_Controller said:

@sourcrates I was under the impression that insurance paid by monthly instalments with an element of interest for doing so does count as a credit agreement, therefore late or missed payments may well be reported to CRAs.

The company either reports to your credit file, or they don`t, if they do, then there will be the OP`s payment history etc, and they may well apply the default, but as its deficient, it could be challenged.

However the OP seems unsure whether they report to his file or not, so that needs determining first, it shouldn't be difficult, the entry is either there or it isn`t.

I pay my car insurance monthly, at first it had interest added, but my policy upgrade included interest free payments, it has never appeared on my credit file, ever.

martinbainbridge1975

The_Fat_Controller said:

@sourcrates I was under the impression that insurance paid by monthly instalments with an element of interest for doing so does count as a credit agreement, therefore late or missed payments may well be reported to CRAs.

I have used close brothers previously, from memory on insurance there is a section it appears on the credit file as a credit agreement.

Most important thing for the OP is to correct the mistake and bring the agreement up to date to prevent a cancellation if it is related to an insurance policy.

I used to work for a broker and more and more are outsourcing credit to premium credit and close brothers 

Usually if a payment failed there would be a 2nd attempt within 7 days before default stage

Flat_Earther

sourcrates said:

The_Fat_Controller said:

@sourcrates I was under the impression that insurance paid by monthly instalments with an element of interest for doing so does count as a credit agreement, therefore late or missed payments may well be reported to CRAs.

The company either reports to your credit file, or they don`t, if they do, then there will be the OP`s payment history etc, and they may well apply the default, but as its deficient, it could be challenged.

However the OP seems unsure whether they report to his file or not, so that needs determining first, it shouldn't be difficult, the entry is either there or it isn`t.

I pay my car insurance monthly, at first it had interest added, but my policy upgrade included interest free payments, it has never appeared on my credit file, ever.

You are, again, confusing CRA defaults with defaults under the CCA.

A deficient default notice only means it cannot be taken to court until a compliant one is issued.  It does not mean a default cannot be registered with the CRAs.

sourcrates

Flat_Earther said:

sourcrates said:

The_Fat_Controller said:

@sourcrates I was under the impression that insurance paid by monthly instalments with an element of interest for doing so does count as a credit agreement, therefore late or missed payments may well be reported to CRAs.

The company either reports to your credit file, or they don`t, if they do, then there will be the OP`s payment history etc, and they may well apply the default, but as its deficient, it could be challenged.

However the OP seems unsure whether they report to his file or not, so that needs determining first, it shouldn't be difficult, the entry is either there or it isn`t.

I pay my car insurance monthly, at first it had interest added, but my policy upgrade included interest free payments, it has never appeared on my credit file, ever.

You are, again, confusing CRA defaults with defaults under the CCA.

A deficient default notice only means it cannot be taken to court until a compliant one is issued.  It does not mean a default cannot be registered with the CRAs.

I`m not confusing anything thank you, if the OP has signed a credit agreement for the insurance, then the CCA will apply, it`s deficient because they are supposed to allow a 14 day window in order to rectify any breach to the agreement, before a default can be registered with the CRA`s, and they, supposedly have not done so.

At present this is all speculative as the OP is unsure if the account is even reported or not, my point is issuing a default after one late payment is quite unfair, and could/should be challenged, if it appears on his credit file, whatever the circumstances.

martinbainbridge1975

default will be a terminology linked to the payment status of the insurance policy.

when i worked in insurance it would be marked as in default if the 2nd attempt for payment failed, we would then allow a period of 14 days for the payment to be made and the mandate reinstated, failing this the policy was cancelled for non payment.

premium credit / close brothers I do believe state in the CCA that missed payments can cause issues obtaining credit

tandydadder

They had not yet made a 2nd attempt; I paid in full today. It’ll be lodged as late payment. I’ll go to a different company on renewal. Thank you for your responses.