Thread: Invalid Default Notices

I have 3 defaults on my credit reference reports. There are 2 companies involved, the Co-op Bank and CrapOne. Neither had credit agreements and both issued invalid Default Notices. What is the best way to get these defaults removed? It is not a priority, I am not going to apply for credit, but I wonder what would be the best approach to have these defaults removed.

Hi Hannah - no one has posted and I think this is quite complicated but after surfing around the site I think I now have my approach clear in my mind. They failed to provide me with copies of my credit agreements in breach of Sections 77/78 of the CCA 1974. The alleged accounts then went into dispute and that meant that under S77/78 (4) they could not take any enforcement action including but not limited to asking for payment, applying charges or interest, and communicating with any third party regarding the account, including Credit Reference Agencies. Without legal Notices of Assignment delivered in the prescribed manner the Co-op assigned the accounts to a third party, namely Frederickson, issued Default Notices and recorded defaults with the CRAs, contrary to the CCA 1974 and the Data Protection Act 1998. The CRAs are also in breach of the Data Protection Act 1998 for recording information in the public domain to my detriment whilst an account is in dispute with the recording bank. It is not enough for them to say "we didn't know" - they should check that all information given to them is in accordance with the Act before they record it. Ignoring the dispute, the Co-op compounded their breaches of law by issuing unlawful Default Notices and terminated the accounts in dispute, which is unlawful rescinding. The Default Notices were unlawful in that they were issued whilst the accounts were in dispute and were technically flawed in that they did not give sufficient time for the alleged breaches to mended. Thereafter the CO-op continued to process my data and passed it on to a DCA and the the CRAs, in breach of the CCA 1974 and the Data Protection Act 1998.

Ditto CrapOne and they continue to breach the laws by updating the information they unlawfully recorded with the CRAs.

They are getting 7 days to remove the entries on my credit reference reports or I will take legal action against them and the CRAs.

Copies of these letters will go to the Data Controllers of the companies, their CEOs, the OFT, the Information Commissioner, the Credit Reference Agencies and the fos (a complaint about the CO-op is now with the Ombudsman and this will just add to it nicely!)

I actually don't give a damn about my credit reports but I am damned if I will let banks do what they like with my information! I think I have a pretty good chance of having them removed. Is this helpful to you Hannah?

Thats It In One
Like Your Style

Just Wait For The Bovine Excrament Letters Saying No Way

I Was The Same With HBOS
Took 12 Months And Writers Cramp, But Got There In The End

Just Dont Take No For An Answer

An Online Dispute With The Cra Would Be A Good Idea

They Have To Remove Entry After 28 Days If No Reply

Hi Pinky69,
Nice one..go get em!
You probably already know, but from my own research on here it also seems that (even if they'd come up with enforceable CCA's) if the accounts were terminated on the strength of the faulty DN's then all they have a right to demand is the amount on the DN's required to remedy the breach, as opposed to the full balance. If that's correct would that be even more ammunition for your complaint?
Elsa x

Thanks Nurse- Elsa. Yes I am aware of that and under that scenario they would have got nothing from me because with both the Co-op and CrapOne the accounts were frozen whilst I was under a debt management plan and went straight from that to being unenforceable. The disputed accounts are all original capital. Shame.

Pinky,

I am subbing as I see that this will be a very useful thread.

GK

Default Notices are covered by the Consumer Credit (Enforcement, Default and Termination Notices) Regulations 1983. They must take a precise form as laid down by these regulations. A DN which doesn't is invalid. Where a DN is invalid then the account terminated, the creditor loses the legal right to the capital sum as they terminated the account without giving the debtor an opportunity to mend the breach that led to the default in the first place. All they can claim is any arrears that arose whilst the agreement was current. Where a DN is valid ie draw up properly in accordance with the Regulations, then the creditor can claim the whole balance of the account if the breach that caused the default was not remedied by the given date on the DN.

Pinky,

Thank you so much for starting this thread. I have been waiting for a number of "proper" CCAs to arrive, but have never quite understood the faulty DN situation at all. I've seen various posts but hadn't quite got it that if you get a faulty DN followed by the Termination notice they can only expect the arrears - say £300 - rather that the total outstanding balance - say £5000. I think I've got that right now?

Love this thread... subbing, but as someone previosuly questioned, is a creditor allowed to claim the full balance of an account in a DN, as opposed to just the arrears outstanding?

Good luck.

It's a long haul from what I have seen.

David

Originally Posted by Stressed150

Love this thread... subbing, but as someone previosuly questioned, is a creditor allowed to claim the full balance of an account in a DN, as opposed to just the arrears outstanding?

A DEFAULT NOTICE IS FOR THE ARREARS, IF NOT PAID WITH IN 14 DAYS THE ACCOUNT IS THEN TERMINATED AS THE ACCOUNT IS LISTED IN DEFAULT,
PROB THEN SOLD TO A SCUM BAG DCA

A DEFAULT NOTICE IS JUST FOR THE ARREARS
NOT FOR THE BALANCE OUTSTANDING

subbing

Originally Posted by postggj

A DEFAULT NOTICE IS FOR THE ARREARS, IF NOT PAID WITH IN 14 DAYS THE ACCOUNT IS THEN TERMINATED AS THE ACCOUNT IS LISTED IN DEFAULT,
PROB THEN SOLD TO A SCUM BAG DCA

A DEFAULT NOTICE IS JUST FOR THE ARREARS
NOT FOR THE BALANCE OUTSTANDING

Therefore, if an OC included the full balance as part of the sum of the DN, this renders the DN unenforceable? Sorry for highjacking this thread....

Well this is it folks- the letter I will be sending them off on Tuesday. Hope it is helpful.




The Data Controller
(Bank)


Dear Sir/Madam,

Your ref:


I write in connection with a credit card account referenced above which is in dispute. I do not acknowledge any debt to the (Bank) or to any company affiliated with the (Bank).


In December 2007 I requested a copy of the credit card agreement for the account referenced above in accordance with Section 78 of the Consumer Credit Act 1974. I received a reply dated 7 January 2008 in which the respondent (Name), Customer Relations Adviser, wrote that what was enclosed was a copy of the loan application. Later the Bank admitted they did not have a “full agreement” for the disputed account. There is no such thing as a partial agreement and what I was sent doesn’t resemble an agreement in any sense.

This application form does not fulfil the requirements for a copy of an executed agreement under the terms of the Act and is unenforceable in law. It is a purely an application form and does not conform to the requirements of the Consumer Credit (Agreements) Regulations 1983. A credit card agreement must have the prescribed terms (credit limit, interest rate, and repayment schedule) within the same 4 corners of the agreement as the signature box. This application form has no prescribed terms and no Terms and Conditions whatsoever.


This is an unenforceable application form and the (Bank) do not have any documentation containing my express written permission to process my personal data in connection with this disputed account, in clear breach of the Data Protection Act 1998. The Bank have already breached the Act in passing my personal data to third parties, namely (DCA) and the credit reference agencies.

Furthermore, in 2007 the (Bank) sent me an invalid Default Notice in connection with this disputed account. The date by which to remedy the breach of the alleged agreement is given on the Notice as 14 days from the date on the Notice when in fact under the Consumer Credit Act 1974( as ammended in 2006) the time that must be given to remedy a breach of agreement is 14 days after the date of service. The date of service in law is deemed to be 2 days after the date on the Notice if it was if sent by 1st Class post and 4 days after the date on the Notice if it was sent by 2nd class post. There then must be 14 clear days after the date of service allowed to remedy the breach. All the Bank did was set a date 14 days from the date on the Notice, rendering the Notice unlawful as it did not allow sufficient time for the alleged breach to be remedied. The Bank then terminated the alleged agreement, unlawfully rescinding the disputed account. The Bank then entered an unlawful default on my credit reports as they did not serve me with a valid Default Notice before terminating the disputed account. The Information Commisioner is clear that all entries to credit reference reports must be made in accordance with a recognised industry standard. The Bank's actions have in my case not only fallen well short of the recognised standard but have been in clear breach of the consumer credit and data protection laws.


Unless the Bank can provide me with documentation in which I gave the Bank my express written permission to process my personal data, I require them to cease all use of my personal data with immediate effect and remove all entries from my credit reference reports. It will not be good enough to assert that I must have signed it – I require clear documentary proof of written permission.

The Bank has 21 days to reply and action as necessary. Failure to do so will result in further action from me, including but not limited to, formal complaints to the Information Commissioner and the Office of Fair Trading Consumer Credit Licence Fitness Department re gross misuse of my personal data and blatant breaches of the consumer credit laws.


I look forward to hearing from you. If there is anything about this letter you do not understand I advise you to consult a solicitor.


Yours faithfully,

Cc The Chief Executive of the (Bank)

Cc Experian
Cc Equifax
Cc Call Credit

Note to the credit reference agencies : You are jointly responsible for entering an unlawful default entry into my credit report in connection with this disputed account and your actions will form part of my complaint to the regulatory bodies if such action is required.

Hi Pinky,

Have you had a response to your letter yet?

Vint

No I haven't heard anything - they have gone completely stum. I gave the letter a few tweakS before I sent it - I felt was missing a bit of sting. So, at the moment I have made court enquiries (Scotland) to see what level I want to pitch this at legally. I will also be taking legal advice. I've got SAR's and final demands going off this week. I will keep you posted.