bank loan defaulted!! can they do this?

[lisamellor]

hi there,

i have been looking at my credit file recently, and to cut a long story short...

i got a bank loan with HFC a few years ago, the bank loan will be finished aug 2007. anyway i got insurance on the loan, (luckily as i can not work at the moment) so the insurance company is paying the payments i just have to send in sick notes every 3 months. well anyway on my credit file it says that i have defaulted on my payments. is this right?? the insurance is paying the money on time and maybe once or twice the sick note has been sent in late meaning the payment is a bit late.

but i recieved a letter from the bank saying that they have paid upto the 14th august ( which is when i need to send another sick note in) so why does my credit report say that i have defaulted as im in front??

is there anything i can do about this??

thanks in advance.
lisaxx

Moderated: moved from general

[elsinore]

Does the default appear on all the CRAs, lisa?

Elsinore

[martin2006]

have u had a default notice from them?
if u havent they cant place a default, legally on your file
Demand that they remove it.

[lisamellor]

i am not aware of a default.

i dont know if it is even a default its on experian and on the file it has number and mine says ( in red. when i looked at it it says that i have defaulted. have tried to get on line with experian but the system is down. maybe i should look further into it and report back.

lisaxx

[lisamellor]

hi there,

well been to credit file. its experian i have looked at.

against a hfc it says [8] at the bottome it says
the account is defaulted. you have failed to keep to your credit agreement and have not responded satisfactorily to requests to put your account into order. as a result the credit agreement has now ended.

now i always made my payments on time. i was never ever late.
when i had to stop work the first thing on my mind was my bank loan, and my doctor gave me a sick note to send in to them, which i did and have done ever since.

every letter that the bank sent me i responded quickly, i never ignored them, or tried to put it to the side.

now because i am claiming through the insurance does that mean that i have defaulted?? as i said i dont ever remember having a letter saying that i have been defaulted.

the bank did send a couple of letters which were quite harsh, so i got on to them saying that the insurance are dealing with it and that was that.

i havent had any correspondance from hfc for about 18 months and if i do get the occasional letter it is a to offer me a quick settlement at a discount. i contact them in person declining the offer as i am unable to find that amount of cash.

lisaxx

[elsinore]

Looks to me as if HFC have been receiving payments from Ins.Co. but not marrying them up with your account. If Ins.Co. did not quote the correct reference the payments might be festering in a suspense account at HFC. The HFC system would read 'no payments' to the account and that would trigger off the account default programme.
Is the date of the default soon after Ins.Co. started making payments on your behalf?
Ask Ins.Co. how they have been making payments and what reference they used, so that you can inform HFC.
I would either call HFC and ask to speak to a supervisor or manager, or write to them explaining what has happened.
This sounds like you are doing their job for them, but sometimes it's the ony way!
If you can get them to agree that they have been receiving the payments, then you should be able to persuade them to remove the default.

Elsinore

[lisamellor]

cheers !! i will contact the insurance company tomorrow and see how things stand. glad i paid for the top whack gold cover insurance now!!

lisaxx