Credit card default

kat2050

Hello, advise please for my daughter, she is married they own their home,  she changed banks accounts and the DD for her credit card defaulted without her realising, she has the money to pay so it is not that she dosent, she got a letter which first bought to her attention, she acted quickly contacted the card company to pay, they said they had sent her 2 other letters, but she didnt get them, she has paid off the card in full, but they wont remove the default, she will need another mortgage and is so worried about it, she has had Cancer and is living with many health issues , she works 4 days a week as her health wont allow her to do more, the card company has not been helpful at all , all they say is we can proove we sent you letters, you should have checked, but with so much going on in her life you just forget to do so, I dont check all mine lack of time, any help is welcome, as a Mum I cannot leave her to sort this all out, it is getting too much for her. Just to add never defaulted on her Mortgage household bills etc, it dosent seem fair no one will help. Thank you 

la531983

Its an accurate reflection of payment history, so they have no obligation to change it.

Brie

Well the obvious thing is that she should have noticed that all her bills weren't being paid, even if she didn't get any letters.  But that's a lesson for the future as we're way past that stage now.

OK so - has the card been cancelled or simply showing a few missed payments?  What specifically is showing on her credit record?  

And given her health issues has she discussed this payment problems with the card's vulnerable customer team?  That might be worth a try.

Yes, if not resolved, this may affect remortgaging but when she gets to that stage she might find that using a mortgage broker might help.  Alternatively she may find that she can stay with her current mortgage provider but simply not at a rate/term she wants.  Possibly she will need to go to a variable interest rate.  

The good news is that time heals most debt issues - if she doesn't need to remortgage for a couple of years yet and everything else is shiny and bright on her credit record then this will make less impact than if she needs to remortgage this year.  

Emmia

If she is on a fixed rate mortgage she can take out another fix at the end of the term, without needing lots of extra checks - she doesn't necessarily need to fully remortgage... Unless she's moving or wants to borrow more. 

sgthammer

Shouldn't her Direct Debit have been caught by the switching process when she changed banks?

MyRealNameToo

kat2050 said:

Hello, advise please for my daughter, she is married they own their home,  she changed banks accounts and the DD for her credit card defaulted without her realising, she has the money to pay so it is not that she dosent, she got a letter which first bought to her attention, she acted quickly contacted the card company to pay, they said they had sent her 2 other letters, but she didnt get them, she has paid off the card in full, but they wont remove the default, she will need another mortgage and is so worried about it, she has had Cancer and is living with many health issues , she works 4 days a week as her health wont allow her to do more, the card company has not been helpful at all , all they say is we can proove we sent you letters, you should have checked, but with so much going on in her life you just forget to do so, I dont check all mine lack of time, any help is welcome, as a Mum I cannot leave her to sort this all out, it is getting too much for her. Just to add never defaulted on her Mortgage household bills etc, it dosent seem fair no one will help. Thank you 

Did she use the switching service for the bank account change? If so she should be contacting her new bank and asking why they didnt switch the DD for the card. 

To get a default she must have missed two payments, if not more, which means she isnt being good at checking her accounts even if it's just once a month. Ultimately it's factually correct that she has defaulted and so there are no grounds to argue it should be removed unless it was a failure of the switching service. 

sourcrates

Are you sure its a default?

Did they send an actual default notice under sec 87(1) CCA, because that would give her 14 days to remedy the breach and stop the account from defaulting, a default notice is a statutory requirement. 

What timescale are we talking here, as a default would require at least 3/6 missed payments, over at least a 3/6 month period, is the default registered on her credit file?

Are you sure its not just a missed payment marker and she received a "default sums in arrears" notice, which is only a notification of a £12 late payment charge?

Lots of people only see the word "default" and think they have been defaulted.