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    • cplmadison
    • By cplmadison 9th Oct 19, 12:45 PM
    • 13Posts
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    cplmadison
    Default without credit agreement
    • #1
    • 9th Oct 19, 12:45 PM
    Default without credit agreement 9th Oct 19 at 12:45 PM
    Hi

    Just after a bit of advice

    last year (sept 2018) i purchased home contents insurance for the princely sum of £120 this "expired" sept 2019. It seems the insurer as renewed the cover without me knowing and Premium Credit who deal with the monthly repayments have been spamming me for 2 or 3 weeks telling me I have to sign the credit agreement or face default charges etc

    Now as I didnt ask for my contents insurance to be renewed I was initally reluctant to sign.

    On October 2nd 2019 (yes 7 days ago) I decided hey maybe I should carry on with the insurance it isnt much, so I signed the Credit Agreement. On October 4th (2 days later) I was issued with a Default Notice as the payments for September 2019 werent made (as we had no valid credit agreement).

    My question is, is the Default registered on my credit file legal since I only had only signed the agreement 2 days previously and can I / Should I cancel the agreement within my 14 days. Would cancelling within my 14 day period automatically void and remove the default?

    Ive spent 5 years slowly building up my credit score after a period of bad debts in order to get a mortgage in March 2020 and was almost there but now these guys seem to have screwed it all up for me again

    Seriously regretting signing the agreement but can they really enforce septembers payments on me when I only signed in October? Doesnt the credit agreement start from the date of my signature?

    Appreciate any help!
Page 1
    • cplmadison
    • By cplmadison 9th Oct 19, 1:21 PM
    • 13 Posts
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    cplmadison
    • #2
    • 9th Oct 19, 1:21 PM
    • #2
    • 9th Oct 19, 1:21 PM
    update -

    A Default Notice has been served apparently because i cancelled a direct debit on the 4th and no payment could be taken from my account

    I signed the agreement on the 2nd, no direct debit was setup by them, the dd from 2018-2019 is still valid on my account ....how can they say i cancelled my DD when they didnt set one up?

    this company have seriously screwed up their admin and im paying for it !
    • Willing2Learn
    • By Willing2Learn 9th Oct 19, 1:22 PM
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    Willing2Learn
    • #3
    • 9th Oct 19, 1:22 PM
    • #3
    • 9th Oct 19, 1:22 PM
    I thought you could not have an account defaulted until it was three months in arrears. In fact, three months is what the official guidance says (as I just checked).

    Besides a Default Notice gives you at least 14 days to bring the account back up to date. The account has not defaulted.
    Last edited by Willing2Learn; 09-10-2019 at 1:24 PM.
    I work within the voluntary sector, supporting vulnerable people to rebuild their lives.

    I love my job

    • cplmadison
    • By cplmadison 9th Oct 19, 1:37 PM
    • 13 Posts
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    cplmadison
    • #4
    • 9th Oct 19, 1:37 PM
    • #4
    • 9th Oct 19, 1:37 PM
    IMPORTANT YOU SHOULD READ THIS CAREFULLY
    This is a default notice served under Section 87 (1) of the Consumer Credit Act 1974. The credit provider is:
    Premium Credit Limited, Ermyn House, Ermyn Way, Leatherhead, Surrey, KT22 8UX


    so this wont go on my credit file?

    they claim i cancelled a direct debit just because within 2 days of signing they failed themselves to get one setup with my bank !
    • Willing2Learn
    • By Willing2Learn 9th Oct 19, 1:46 PM
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    Willing2Learn
    • #5
    • 9th Oct 19, 1:46 PM
    • #5
    • 9th Oct 19, 1:46 PM
    ...so this wont go on my credit file?...
    Originally posted by cplmadison
    No. It is a default notice and not a default. You have 14 days from the date of the Default Notice to clear any arrears. To be honest, I am not even sure insurance companies report to the three Credit Reference Agencies. I pay annually, so I wouldn't really know if that was the case...
    I work within the voluntary sector, supporting vulnerable people to rebuild their lives.

    I love my job

    • cplmadison
    • By cplmadison 9th Oct 19, 1:53 PM
    • 13 Posts
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    cplmadison
    • #6
    • 9th Oct 19, 1:53 PM
    • #6
    • 9th Oct 19, 1:53 PM
    premium credit are on my Credit Karma file (Transunion) and i think equifax too

    I will have ot monitor the situation

    either way i made a formal complaint in writing and cancelled the credit agreement with in my 14 day period, i will give them 8 weeks and then pass it onto the ombudsman to look at
    • Willing2Learn
    • By Willing2Learn 9th Oct 19, 1:59 PM
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    Willing2Learn
    • #7
    • 9th Oct 19, 1:59 PM
    • #7
    • 9th Oct 19, 1:59 PM
    Don't forget to purchase some home contents insurance with some provider or other. Don't try going uninsured, as that is a recipe for disaster...
    I work within the voluntary sector, supporting vulnerable people to rebuild their lives.

    I love my job

    • fwor
    • By fwor 9th Oct 19, 1:59 PM
    • 6,228 Posts
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    fwor
    • #8
    • 9th Oct 19, 1:59 PM
    • #8
    • 9th Oct 19, 1:59 PM
    It seems the insurer as renewed the cover without me knowing
    Originally posted by cplmadison
    When you take out insurance, one of the things you need to check is whether "auto-renewal" is part of the terms and conditions. Many insurers do not offer the option to decline this when you take the insurance, and say that you have to contact them to cancel the feature.

    So you need to be sure that the insurance did not have that term when you signed up last year.

    If it did, then they were within their rights to renew your policy if you did not make contact when it became due.

    The issue of a Credit Agreement is a completely separate one. Even if you fail to sort out a new credit agreement, payment for the months of insurance that you have already had will be due (because they have provided you with a service). Whether you pay for it via a Credit Agreement or all at once in cash is up to you - but it still has to be paid.

    Conversely, if you did not sign up to auto-renewal then the insurance company had no right to renew your policy. That's why you need to be sure about what you signed up to last year!
    • cplmadison
    • By cplmadison 9th Oct 19, 3:17 PM
    • 13 Posts
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    cplmadison
    • #9
    • 9th Oct 19, 3:17 PM
    • #9
    • 9th Oct 19, 3:17 PM
    tbh i cant remember where i initially purchased the insurance from but i will check

    my main concern is receiving a default notice 2 days after signing the credit agreement
    • cplmadison
    • By cplmadison 9th Oct 19, 3:47 PM
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    cplmadison
    well finally managed to have a phone call

    Yes i do have a default on my credit file

    The reason for the default is the company tried to take a payment against a closed account

    something went wrong their end not mine, but this is going to screw with my mortgage app
    • Willing2Learn
    • By Willing2Learn 9th Oct 19, 4:03 PM
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    Willing2Learn
    What was the date of the default notice?

    The default notice has to give you 14 days to rectify the problem.

    You said that Premium Credit are on your credit files. Is that as an active credit account or only a search of your files? Premium Credit are not allowed to record inaccurate data on your credit file.

    You said you have made a written complaint. I recommend refraining from making any more telephone calls. This situation needs to be resolved in writing. With a paper trail. If there is inaccurate information on your credit file then you would need to escalate to the ICO as well as the Ombudsman should your complaint not be upheld.

    Have you checked the snapshots of your credit files? Are they showing a default on your file?
    I work within the voluntary sector, supporting vulnerable people to rebuild their lives.

    I love my job

    • Ben8282
    • By Ben8282 9th Oct 19, 4:59 PM
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    Ben8282
    Hi

    Just after a bit of advice

    last year (sept 2018) i purchased home contents insurance for the princely sum of £120 this "expired" sept 2019. It seems the insurer as renewed the cover without me knowing It is not uncommon for insurers to auto-renew a policy although they should have written to you and should also have advised you of the cost of the new policy and provided full details of the new monthy payment and the date of the first direct debit and Premium Credit who deal with the monthly repayments have been spamming me for 2 or 3 weeks This is not SPAM! telling me I have to sign the credit agreement or face default charges etc Very odd. Why should they be saying this? Sign a credit agreement or face default charges? Really?

    Now as I didnt ask for my contents insurance to be renewed I was initally reluctant to sign.Strange comment. Did you or did you not want to renew the contents insurance. You have subsequently implied that you do not want to be without contents insurance but you had not made alternative arrangements elsewhere, so what exactly did you want? Had the credit agreement that they wanted you to sign already been sent to you by post? If not, how did these so-called spam e-mails suggest that you sign something that you did not have?

    On October 2nd 2019 (yes 7 days ago) I decided hey maybe I should carry on with the insurance it isnt much, so I signed the Credit Agreement. As asked above. How and when did you receive this credit agreement? On October 4th (2 days later) I was issued with a Default Notice as the payments for September 2019 werent made (as we had no valid credit agreement). This is very odd and makes no sense to me.The non-existance of a signed agreement should not have prevented the direct debit being taken unless they took this as a desire on your part not to renew and they chose not to take the direct debit in which case there would have been no default.This is however highly unlikely. Furthermore an account does not default after one missed payment. THe insurance company would like to retain your business not trash your credit file.
    My question is, is the Default registered on my credit file legal since I only had only signed the agreement 2 days previously and can I / Should I cancel the agreement within my 14 days. Would cancelling within my 14 day period automatically void and remove the default?

    Ive spent 5 years slowly building up my credit score after a period of bad debts in order to get a mortgage in March 2020 and was almost there but now these guys seem to have screwed it all up for me again Your credit score is meaningless and I feel sorry that you have spent 5 years building up a meaningless number

    Seriously regretting signing the agreement but can they really enforce septembers payments on me when I only signed in October? Doesnt the credit agreement start from the date of my signature?

    Appreciate any help!
    Originally posted by cplmadison
    Se comments above.

    tbh i cant remember where i initially purchased the insurance from but i will check

    my main concern is receiving a default notice 2 days after signing the credit agreement
    Originally posted by cplmadison
    That is an easy one to answer. The default notice would have been printed and made ready to be posted more than 2 days before you received it.

    they claim i cancelled a direct debit just because within 2 days of signing they failed themselves to get one setup with my bank !
    Originally posted by cplmadison
    What? This makes absolutely no sense. A direct debit cannot be set up and taken in two days! But why would they need to set up a new direct debit? The old one would just have continued automatically. Did you cancel it???
    well finally managed to have a phone call

    Yes i do have a default on my credit file

    The reason for the default is the company tried to take a payment against a closed account

    something went wrong their end not mine, but this is going to screw with my mortgage app
    Originally posted by cplmadison
    Now you appear to be saying that the bank acount on which the direct debit was set up has been closed? Has it?
    When you say you have a default on your credit file have you verified this or is that what they said to you?
    They really do appear have been VERY QUICK to inform the CRA's of this 'default'. Is it REALLY a default or a late payment marker?
    You also confirm in this post that you do have a default on your credit file as if you had just confirmed that fact yet in your OP you also mention having a default registered on your credit file
    Last edited by Ben8282; 09-10-2019 at 5:31 PM.
    • The Mould
    • By The Mould 9th Oct 19, 5:17 PM
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    The Mould
    As you were provided with credit, the creditor owes a duty of care to you, that duty includes his duty to not act against your financial interests.

    His duty also includes his duty to undertake a proper investigation into this matter and to put it right. See - Durkin v DSG Retail Ltd & Anor [2014] UKSC 21.

    The reporting to credit reference agencies that you have defaulted is factually incorrect and untrue and defamatory and amounts to a fraudulent misrepresentation.

    You should set out the facts of this matter in writing to the creditor, remind him of his duty of care owed to you (cite the Durkin case in your letter), and tell him if he does not remove the incorrect default from your credit files within 14 days, you will bring a civil action against him for the sum of £8,000.00 on the above grounds.

    Stop speaking to the robots on the telephone! Keep all communications in writing only!

    Kind regards

    The Mould
    • The Mould
    • By The Mould 9th Oct 19, 5:19 PM
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    The Mould
    If you signed the agreement on the 2 October 2019 and thereby entered into it, you cannot possibly be held liable for a payment said to be due in September!

    Kind regards

    The Mould
    • cplmadison
    • By cplmadison 9th Oct 19, 8:27 PM
    • 13 Posts
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    cplmadison
    Thanks for all of your replies and advice lots to read through...

    To answer some of the questions

    The 2018 to 2019 direct debit is still on my bank account and hasn't been claimed since August 2019.

    The credit agreement arrived by email early September but I didn't sign it or agree at the time because i wasn't sure I wanted it as I have other insurance too

    Premium. Credit failed to setup a new direct debit on my bank account in this time, I assume because they had no credit agreement.

    This resulted in me missing my September payment as there was currently no valid agreement or dd

    When I did decide to sign the agreement In October it was 2 days before the next payment was due which didn't go through.

    Premium. Credits response was they tried to take the money from a closed account which they said was an error and they would investigate what happened. I don't know what they mean as my account is open, no dd was ever setup for the new agreement. In the default notice it says they tried to collect a payment by dd but I had cancelled the dd with my bank. This is untrue one was never set up and my bank can confirm this.

    I will check the date on the default notice too and post that up in a moment
    • cplmadison
    • By cplmadison 9th Oct 19, 8:33 PM
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    cplmadison
    The default notice is dated 8th October

    So 6 days after I signed the agreement and 3 days after my 1st payment wasn't collected
    • cplmadison
    • By cplmadison 9th Oct 19, 8:35 PM
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    cplmadison
    Oh and the default question I was told on my phone the default will be registered but they report to equifax at the end of each month

    So currently it isn't on my file but will be by the 30th

    So are you of the opinion court proceedings for 8000 should happen instead of ombudsman/ico or happen in conjuction with both?
    • Thrugelmir
    • By Thrugelmir 9th Oct 19, 9:07 PM
    • 64,982 Posts
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    Thrugelmir
    The default notice is dated 8th October

    So 6 days after I signed the agreement and 3 days after my 1st payment wasn't collected
    Originally posted by cplmadison
    Takes 10 days minimum to set up a new direct debit. You've been sitting on the paperwork far too long.
    Last edited by Thrugelmir; 09-10-2019 at 9:10 PM.
    “If the financial system has a defect, it is that it reflects and magnifies what we human beings are like. Money amplifies our tendency to overreact, to swing from exuberance when things are going well to deep depression when they go wrong. Booms and busts are products, at root, of our emotional volatility.”
    ― Niall Ferguson
    • The Mould
    • By The Mould 9th Oct 19, 10:25 PM
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    • 7 Thanks
    The Mould
    So, at the time they claim you missed a payment - Sept, there wasn't an agreement in place and the default notice is asking you to pay arrears that they claim were due in Sept, is that correct?

    I am of the opinion that you should send a letter to Premium Credit setting out the facts you have posted here.

    Your grounds of complaint/causes of action are fraudulent misrepresentation, data protection breach, damage to your economic position and breach of duty of care.

    The ICO is not going to help you remove the disputed default.

    Your letter should be addressed as Executive Complaint to the Director Mr Christopher Stephen Burke.

    Give them 14 days to acknowledge service of your letter, and another 14 days to give their reply.

    Put them on notice that in the event of them failing to engage in pre-action conduct, and in the event of them failing to put this matter right, you will institute proceedings without any further reference to them.

    Your letter will act as your Letter Before Claim for the purposes of pre-action conduct and you should send it by Special Delivery or Recorded Delivery for proof of service.

    It would be a good idea to also send a copy of your letter to the credit references agencies so as to make them aware of the disputed default.

    If no satisfactory resolution is reached, you can issue your Claim by Money Claim on Line the fee for an £8,000 Claim is £410.

    Kind regards

    The Mould
    • The Mould
    • By The Mould 9th Oct 19, 10:31 PM
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    The Mould
    Ok, just re-read your first post.

    As the agreement wasn't in place in Sept, there is no legal obligation on you in Sept to make any payment, so you have not defaulted because there was no agreement for you to breach.

    Kind regards

    The Mould
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