Can I remove a default and claim compensation?

I ended a car finance (HP) in Dec 2022 as I took out another loan with lower interest. As part of the loan the lender sent payment directly to the creditor. 
The creditor chased me on January 23 for non payment. I followed up with evidence of payment (after asking the loan company to send to me). 
The creditor stated the payment did not clear and eventually sent me a default notice for non payment. There was various back and forth in this time trying to evidence payment being made. 
All went quiet until a summons for a CCJ was sent to me. I disputed the CCJ claim and provided evidence of all emails and confirmation from the loan company that the payment had been made. I heard nothing further so assumed the issue had been rectified. 
Fast forward to yesterday I recieve another default notice from the creditor for £3. I emailed to ask what it was and it was stated it was a land registry search as they are pursuing a CCJ against me. 
So I've gone back around in a circle disputing, providing evidence, going back again to the loan company to ask that they provide more evidence of payment. 
In the meantime I have a default against me and pursual for a CCJ. If I can finally get the confirmation either way that the payment was or wasn't made in my mind I am not at fault here and stuck between 2 companies. 
Is it possible in these circumstances to get a default removed? 
And is it possible to seek some form of compensation from the loan company if it is proven that they have not cleared the payment for some reason? I've been paying interest on the loan for over a year and I'm starting to think due to some error somewhere perhaps they didn't clear the payment. 

Advice welcomed 

Comments

  • adamp87
    adamp87 Posts: 852
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    edited 25 January at 11:32AM
    I’m confused I’ve need heard of a loan company paying a creditor on your behalf, usually isn’t it they’ll give you the money and you pay? So really this is a tough one for you to prove anything without their help.

    You already have proof from the company they paid it so there’s evidence 1. 

    I’d request a SAR from the loan company you expected to make the payment asap. They’ll then send you all the information docs they have on you this should include accounting in some form see if you can see it

    Could also log a formal complaint with the loan company that they aren’t responding to you and giving you this evidence that they’ve made a payment. Might escalate matters 
     
    I don’t understand this second default notice you don’t get a default notice for a search of your file can you explain more?

    Why is there a new default notice for £3?

     Final query - if the funds weren’t sent correctly surely they’d have bounced back and been reapplied to your loan amount that you are paying off? Or they’ve paid someone completely different?
  • Lilsycamore
    Lilsycamore Posts: 10
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    The loan was agreed on the basis the money was sent directly to the creditor as it was taken out to combine debts. I assume it was due to affordability in that unless they could be certain I would use the money to pay off other debt I was unaffordable to lend to. 

    Could you explain what a SAR is please? 

    The £3- I received an email from the creditor with a default notice attached and in the letter it states the following 
    'This notice is being sent in accordance with Government legislation which requires us to keep
    you informed of fees or charges that are incurred on your account. Your account has been
    debited with the amounts below, which are called Default Sums and represent additional
    costs we have incurred in the management of your agreement with us.
    Default Sum Notice
    This notice is issued in accordance with section 86E of the Consumer Credit Act 1974, to
    notify you of sums that have been charged under the terms and conditions of your above
    numbered agreement.
    Date Reference Amount
    21/12/2023 Collections Charge (OS1) £3.00
    Total £3.00' 

    When I queried with the creditor they replied with ' The £3 charge noted is for a Land registry search that we have conducted with the possible intent on applying for a charging order on your property'.

    When I further queried what that meant I had this 'There still remains a balance of £1,316.00 outstanding in regards to the car finance you have with us.
    Due to no payments made we are in the process of applying for a County Court Judgement.'

    And that has instigated another round of back and forth with me showing the previous evidence of payment the loan company sent me and chasing the loan company back up for further evidence as the creditor is adamant they haven't received payment. 

    I've tried calling the loan company today and unsuccessful in speaking to the manager who has previously handled the account and sent proof of payment. I've since emailed them again today and cc'd in the credit so they can see in real time my efforts to resolve this. 

    I am going to pursue formal complaint route now as well. 

    Thanks for your response, appreciate it


  • molerat
    molerat Posts: 31,568
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    Could you explain what a SAR is please?

    Subject Access Request

    You ask the concerned organisations to send you a record of all the information they hold on you.  In this case I think you would need to do it to both lenders as there may be bank codes / account numbers which will show where any money went.

    https://ico.org.uk/for-the-public/your-right-to-get-copies-of-your-data/



  • Nebulous2
    Nebulous2 Posts: 5,065
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    How much was the loan for? Is it possible that the payment from the other lender didn't pay enough to clear the loan?

    Lenders are allowed to add two months interest if you settle early. A formal settlement figure provided from the lender is only valid for a certain period - maybe 30 days. 
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