Default Notices

karen_newcastle

Are companies you owe money to supposed to warn you before they issue a default notice and give you time to pay?

I was paying for a sofa (3 years interest free credit) and the finance company cancelled the Direct Debit 2 months before it was due to end and then sent me a bill for the final payment of £75.12 on 16 August.

On 19 Sept I paid this but at the end of Sept they 'sold' this debt to another company. They conveniently forgot to tell this new company I had paid in full and it's taken until now to sort it out!

Anyway, Ive now found out that the finance company have put a default notice on my account on 18 Sept (the day before I paid grrrrrrrrrrrrr :mad: ). But the only request for payment I had was on the 16 Aug!!

Obviously I want to get this default notice off my account but not sure what to do.

Beerworshipper

Hi Karen,

I can understand that this situation must be so frustrating for you.

I'm not sure if Finance companys are obliged to warn you before issuing a default notice. Although legally I suspect not because under normal circumsatnces if the person that owes them money doesn't pay then its the payer and not the company that have failed to honour the terms of the credit agreement.

However, your case seems a little more complicated than this.

You say it was the finance company that cancelled the direct debit, or to put it another way failed to take the money from your account?

When did they take the last payment by direct debit from your account? By this I mean you said you were paying monthly without problems and they suddenly stopped - when was this? Also, if it had gone full term when would the last payment have been due to leave your account?

My hunch is that if it was them that failed to take the money from your account then you may possibly have a slight chance of getting them to remove the default as its actually them that changed the status quo.

terryw

Beerworshipper wrote: »

Hi Karen,

I can understand that this situation must be so frustrating for you.

I'm not sure if Finance companys are obliged to warn you before issuing a default notice. Although legally I suspect not because under normal circumsatnces if the person that owes them money doesn't pay then its the payer and not the company that have failed to honour the terms of the credit agreement.

However, your case seems a little more complicated than this.

You say it was the finance company that cancelled the direct debit, or to put it another way failed to take the money from your account?

When did they take the last payment by direct debit from your account? By this I mean you said you were paying monthly without problems and they suddenly stopped - when was this? Also, if it had gone full term when would the last payment have been due to leave your account?

My hunch is that if it was them that failed to take the money from your account then you may possibly have a slight chance of getting them to remove the default as its actually them that changed the status quo.

You can make a note of correction/comment on your file with the credit reference agency. I would guess if you did this the firm would remove the default on your file as there is only a day between payment and the default notice.

terryw

karen_newcastle

Beerworshipper wrote: »

Hi Karen,

I can understand that this situation must be so frustrating for you.

I'm not sure if Finance companys are obliged to warn you before issuing a default notice. Although legally I suspect not because under normal circumsatnces if the person that owes them money doesn't pay then its the payer and not the company that have failed to honour the terms of the credit agreement.

However, your case seems a little more complicated than this.

You say it was the finance company that cancelled the direct debit, or to put it another way failed to take the money from your account?

When did they take the last payment by direct debit from your account? By this I mean you said you were paying monthly without problems and they suddenly stopped - when was this? Also, if it had gone full term when would the last payment have been due to leave your account?

My hunch is that if it was them that failed to take the money from your account then you may possibly have a slight chance of getting them to remove the default as its actually them that changed the status quo.

The last payment they took was June. So July and August would have been the last two payments. I didn't notice that they hadn't been taken and then got a bill for £75.15 on 16 Aug (2 weeks after the final payment would have been due)

This bill was just a bog-standard request for payment - no timescales for payment or warnings of what would happen if I didn't pay. I should have paid it earlier but was planning my wedding on 21 Sept and it slipped my mind. As soon as I remembered I paid it on 19 Sept.

I rang Activ Kapital yesterday who was 'sold' this debt to ask who I complain to about the Default. They said they would contact the finance company and find out why the DD was cancelled. I know it was the finance company - certainly wasn't me but I am not sure what they plan to do with this information.

Terry -I will try to do as you say and make a note of correction/comment on my file with the credit reference agency. It's already shown as satisfied but I want it removed!! I've never been in debt before and never has these problems. It's very stressful and I can understand the anxiety it causes now.

terryw

karen_newcastle wrote: »

<snip>

Terry -I will try to do as you say and make a note of correction/comment on my file with the credit reference agency. It's already shown as satisfied but I want it removed!! I've never been in debt before and never has these problems. It's very stressful and I can understand the anxiety it causes now.

Agree with you.......My guess is that they will remove it rather that put up with negative comment about them. It is annoying though.

terryw (who is delighted to help a fellow geordie!)

karen_newcastle

terryw wrote: »

Agree with you.......My guess is that they will remove it rather that put up with negative comment about them. It is annoying though.

terryw (who is delighted to help a fellow geordie!)

Hope you are enjoying the nice evening here in Geordieland!

:beer:

fermi

Have a read through the section "Notices of intention to file a default" of this.;)

Technical Guidance Note - Filing defaults with credit reference agencies

Pages 13-15, sections 32-37.

terryw

karen_newcastle wrote: »

Hope you are enjoying the nice evening here in Geordieland!

:beer:

Thanks Karen. Just off to the Westfield WM Club for a pint.

terryw

karen_newcastle

fermi wrote: »

Have a read through the section "Notices of intention to file a default" of this.;)

Technical Guidance Note - Filing defaults with credit reference agencies

Pages 13-15, sections 32-37.

Fermi - that's VERY informative!! Thank you.....most helpful indeed :T