Redress for data breach by Halifax for corresponding with the wrong debt management company

np1v08

Hi Forumites,
I made a formal complaint to Halifax about why they (unlike my other creditors) didn't default my credit card account in 2019 when I was 4 months in arrears and then entered into a DMP managed by PayPlan. 

Someone from the complaint team at Halifax called me this morning to discuss the complaint. She referred to my DMP with 'StepChange' so I immediately corrected her. What then ensued was a somewhat irritable back and forth with her insisting my DMP is with StepChange because "she was looking at the letters written to StepChange about my account". I insisted she was mistaken, but I could tell she thought I didn't know what I was talking about!

Then she must have found a piece of correspondence from PayPlan. Immediately her tone changed; she was far more conciliatory and said she'd need to get back to me, but she couldn't promise they would be able to apply the default because a default notice was never sent to me (apparently). 

When she called back, she confirmed the default won't be added to my account (so I'll have to complain to the FO). I mentioned the fact they had been writing to StepChange and that this was a data breach. She agreed and offered me £75, but I clearly sounded hesitant because she said that she'll raise a cheque so I've got time to think about it and I don't have to cash it if I don't want to!  She will also send me all the correspondence sent to StepChange.

When I got off the call I realised I should have asked her what that £75 was based on and why was it not xx or yy instead? I spoke to the ICO, and they advised me to make a new, separate complaint about the data breach, but I wondered if anyone else has encountered anything similar and what happened. Nb. I have never had any dealings with StepChange and there is no logical reason why Halifax might have thought my DMP was with StepChange. 

Thanks! 

fatbelly

I don't see why you should not ask FOS to consider both complaints.

It really does make Halifax look less than competent

np1v08

fatbelly said:

I don't see why you should not ask FOS to consider both complaints.

It really does make Halifax look less than competent

Thanks, yes that's a good idea.  It is baffling that they wrote to StepChange on multiple occasions (she didn't say how many letters were sent). I'm not clear whether it was also due to incompetence/oversight that I didn't get a notice of default, or whether that is standard Halifax/HBOS policy not to default accounts that are in a DMP.  

RAS

One of the things that a lot of people on this forum advise is that people do NOT start a DMP with anyone, including self managed, until defaults are issued.

It's somewhat better now but within the last few years there was a plea on another forum for help for an elderly lady who'd been making token payments for a couple of decades. 

That was still wrecking her credit record because the computers had been reporting AP markers all the time. If the accounts had defaulted, her credit record would have been clear within 6 years of the default. 

You're in a somewhat similar situation, because the computer was talking to the wrong provider and partly in consequence reporting AP markers.

Doubt a human's been near your account for years, until you complained.

np1v08

RAS said:

One of the things that a lot of people on this forum advise is that people do NOT start a DMP with anyone, including self managed, until defaults are issued.

It's somewhat better now but within the last few years there was a plea on another forum for help for an elderly lady who'd been making token payments for a couple of decades. 

That was still wrecking her credit record because the computers had been reporting AP markers all the time. If the accounts had defaulted, her credit record would have been clear within 6 years of the default. 

You're in a somewhat similar situation, because the computer was talking to the wrong provider and partly in consequence reporting AP markers.

Doubt a human's been near your account for years, until you complained.

Well, yes, I'm pretty sure that if I knew then what I know now, I would have approached things very differently! As soon as I experienced my own lightbulb moment in July 2019, I panicked and immediately sought help from PayPlan. Fortunately, the majority of my creditors did default my accounts within the first 3-6 months, so they are all dropping off my credit files now. There are just 2 or 3 I'm trying to sort out.

I'm wondering if the data breach the Halifax committed will give me some leverage and might dispose FOS to uphold my complaint about the default (lack of) as well. I hope so!

ManyWays

Normally, a data breach doesnt help win other sorts of complaints, as its irrelevant. 
The only relevance here is if you can show that the confusion at Halifax meant that they didnt register the DMP properly and if they had they would have defaulted it.  I have no idea if you can argue that.
I wouldnt pin too much hope on this line, but concentrate on saying that what Halifax has done has disadvantaged you and all your other creditors added a default correctly.

np1v08

ManyWays said:

Normally, a data breach doesnt help win other sorts of complaints, as its irrelevant. 
The only relevance here is if you can show that the confusion at Halifax meant that they didnt register the DMP properly and if they had they would have defaulted it.  I have no idea if you can argue that.
I wouldnt pin too much hope on this line, but concentrate on saying that what Halifax has done has disadvantaged you and all your other creditors added a default correctly.

Yes, I think that's where I was going with that particular train of thought! The two things are separate issues, but if there's a suggestion that Halifax didn't act competently in one aspect (communicating with the wrong company about my account), there might be a question about whether they didn't register the DMP correctly, etc. I'm not going to get my hopes up, but it's worth a shot. In my original complaint to Halifax, I stated that my other creditors had defaulted my accounts during this time period, and it is now going to disadvantage me if they don't follow suit. 

in_need_of_direction

Data breaches are a matter for the ICO not FOS.

np1v08

in_need_of_direction said:

Data breaches are a matter for the ICO not FOS.

Yes, of course you're right and  I contacted the ICO immediately after my phone call with Halifax. They advised me to make a new, separate complaint to Halifax about the data breach. I'm waiting to see the scope of the breach (how many letters to StepChange, what the letters said, etc.) before I fire that one off. However, I don't think there's any harm in mentioning the breach when I make the complaint to FOS about the default. It might help support the argument that my account when it went into a DMP was not properly managed and they were incorrect not to send me a notice of default and then default my account back in 2019. They may well disregard that altogether, of course, but I've got nothing to lose.