Default date right or wrong?

Hannah893

Hi

I’m currently doing research into my credit file as will soon be applying for a mortgage but in 2018, I defaulted on a loan. I question the date as I have had written confirmation that the default on my account occurred in December 2018, however the “date of default” on my credit report states March 2019. 

As I understand, there is a window but surely if the date I defaulted on the loan was in December 2018, that should be the date shown on my credit file, regardless of when they report it to the reference agencies?

I fully hold my hands up to the default and have no discrepancies about the decision (I wont go into details), however the internet is plastered with information saying that defaults last for 6 years. So surely my default should end December 2024 and not from the date they reported it as this add an extra 3 months on to those 6 years.

I’ve searched high and low for this answer and seems I cant get a definite answer whether this is correct or not?

Thanks in advance

fatbelly

Can you state exactly what you received in writing in December 2018?

Nasqueron

Defaults should (but note, should, not must) be placed after 3-6 contractual payments are missed - typically this is 3 months of arrears but depends on lender. If you stopped paying in say September 2018 but they defaulted in March 2019 then you could try and ask them to back date it especially given the letter you talk about - assuming you still have it and it definitely says that, as opposed to it being a warning that they can default you, but they don't have to.

Do you know for certain the dates e.g. last paid in say September 2018, letter of default issued after third missed in December 2018 etc?

Separately, is it the original default date from the lender or did they sell it on and the debt buyer has set the default? If so, do the dates match?

MrSilk

I had this issue with AmEx, I fell behind with payments in 2019 but they didn't place the account in default until 2021!.

When I raised this with them directly their final response was that the dates where correct, I knew it wasn't so I submitted a complaint through the ombudsman, AmEx then replied saying they will remove the account completely from my report (Which they did instantly) and offer a 70% discount to the outstanding balance.

It always pays to complain if something isn't right. 

Nasqueron

MrSilk said:

I had this issue with AmEx, I fell behind with payments in 2019 but they didn't place the account in default until 2021!.

When I raised this with them directly their final response was that the dates where correct, I knew it wasn't so I submitted a complaint through the ombudsman, AmEx then replied saying they will remove the account completely from my report (Which they did instantly) and offer a 70% discount to the outstanding balance.

It always pays to complain if something isn't right. 

Just to keep in mind that the ICO guidelines are just that - guidelines - not requirements. A default should be done after 3-6 missed contractual payments (so typically 3-6 months) but does not have to be. I am surprised they gave in that easily but a good result

Hannah893

fatbelly said:

Can you state exactly what you received in writing in December 2018?

I received 2 letters. Both of which I requested copies of recently. On the 2nd Dec 2018, I was issued a “notice of default” and given until the 21st Dec to make payment. Which I didn’t (no judgement please). On the 21st Dec 2018, I received “Formal Demand Pursuant to Default Notice”.

i have also spoken to the lending company recently via their online chat and asked the exact date the loans defaulted, which they replied “21st Dec 2018”. However, they have reported to Experian that the date of default is 29th March 2019. They keep going on about a 180 window in which they can report it but surely the date has to still be the same date it defaulted. Not the date they decided to report it?

Hannah893

Nasqueron said:

Defaults should (but note, should, not must) be placed after 3-6 contractual payments are missed - typically this is 3 months of arrears but depends on lender. If you stopped paying in say September 2018 but they defaulted in March 2019 then you could try and ask them to back date it especially given the letter you talk about - assuming you still have it and it definitely says that, as opposed to it being a warning that they can default you, but they don't have to.

Do you know for certain the dates e.g. last paid in say September 2018, letter of default issued after third missed in December 2018 etc?

Separately, is it the original default date from the lender or did they sell it on and the debt buyer has set the default? If so, do the dates match?

Hello.

No they didn’t sell the debt. Yes so on the 2nd December 2018, the letter I received stated that i had missed 4 payments. First one missed was Sept 2018

Hannah893

MrSilk said:

I had this issue with AmEx, I fell behind with payments in 2019 but they didn't place the account in default until 2021!.

When I raised this with them directly their final response was that the dates where correct, I knew it wasn't so I submitted a complaint through the ombudsman, AmEx then replied saying they will remove the account completely from my report (Which they did instantly) and offer a 70% discount to the outstanding balance.

It always pays to complain if something isn't right. 

Excellent result!!! 👍

it definitely does. In the grand scheme of things, even if the March 2019 is correct, then ive nearly done my 6 years but its the principle more than anything! 

MrSilk

Hannah893 said:

MrSilk said:

I had this issue with AmEx, I fell behind with payments in 2019 but they didn't place the account in default until 2021!.

When I raised this with them directly their final response was that the dates where correct, I knew it wasn't so I submitted a complaint through the ombudsman, AmEx then replied saying they will remove the account completely from my report (Which they did instantly) and offer a 70% discount to the outstanding balance.

It always pays to complain if something isn't right. 

Excellent result!!! 👍

it definitely does. In the grand scheme of things, even if the March 2019 is correct, then ive nearly done my 6 years but its the principle more than anything! 

At least it's not as bad as my 2 year delay default! Just bad that these lenders can lie and say it's correct then when you raise with the ombudsman they acknowledge they are wrong. The ombudsman did say they've never known of any lender to offer to completely remove the account from a credit file (like it comply disappeared, even from the 'closed account' section), let alone offer a 70% discount!