Removal of default notices on credit record?

robbieg · 4th June 2006, 05:32

http://www.fool.co.uk/news/foolseyev...fev060504c.htm

hi, having read the article above on how to reclaim your bank and card charges
I was surprised to see that this person thinks its possible to have default notices removed from his credit rating as well! is this possible? is it worth including in my letter to the bank?
quote "The reason why you ask for default notices to be removed is if you defaulted on a charge. It's not fair that your credit record looks bad because of an unfair charge." does this guy have a case?

thanks for reading, rob

Janet-M · 4th June 2006, 10:08

Hi and Welcome
People are getting default notices removed but it depends on the circumstances of how you got the default.Please use the search facility of the site and it is important you read the FAQ's and around peoples threads it will give you a much clearer idea and will answer any questions you have.

jonni2bad · 4th June 2006, 12:44

Just to add to the above, although this is not an exhaustive reply to the question - if you were defaulted for an amount that was very close to, or less than, the amount of charges that had been imposed by that date, you would have a good case.

In my case, defaulted for around £700 - charges total at that time £2024

So I feel I have a case

Robertxc · 4th June 2006, 13:41

In my case, I refused point blank to even discuss settlement unless it included removal of the default. Important to make the distinction between 'removed' and 'settled'.

whistleblowing fairy · 14th June 2006, 23:15

I know we'll remove the default if the only balance was charges.

If you didn't pay before the default notice was issued and the balance was your transactions and charges, we wont remove it.

This is because we're bound by our credit licence to report a true and accurate picture of the way you've managed your account. If your balance included your transactions, you're obliged to pay for them. even if you're disputing part of the balance, you still have a part that you're not disputing that you have to pay for and didn't.

I don't know whats happening with those who've gone to court. I can only say what I've been told and that's if any part of the bal was genuine and no payments made the default is correct.

Also there is a hugh difference between settling a default and removing it. If you can't get the default removed because of a genuine balance and definately go for the next best option of gettingit showed as settled.

jonni2bad · 15th June 2006, 00:20

I think the point of law that we are following is base upon the total level of charges that had already been imposed at the time the default was issued. In such a case, it would be very unlikely that you could show an account that had never been overdrawn without charges, so I don't quite follow your point above, w_fairy.

If an account, for example, had incurred charges totalling very close to the amount it defaulted on, and we accept that the charges are unlawful, then surely it leads to the point of view that had those charges not been imposed, the account would not have defaulted?

whistleblowing fairy · 5th July 2006, 22:32

ok, i'll give you an example which might help.

Say your balance was £200 and you paid this in full but it was a few days late so a late payment charge and interest would be added (say £25). This would give you a balance of £25 (because you cleared the previous balance in full).

If you then didn't pay and the account eventuallt defaulted six months later for £150. We'd be able to remove the default because the balance was just charges as the £200 payment had cleared your transactions.

If your balance was £200 and you only paid £10 but paid it late, getting charges. you then refused to pay because of the charge you received, causing more charges and the account eventually defaults for £365. We'd be unable to remove the default because even if all the fees were refundedm you'd still have your original £200 that you've not paid for.

As I said before, i don't deal with those going through court claims. The amounts I deal with, the refunds still don't clear the balance. So I can't tell you what would happen to the default if the refunds cleared the balance.

:Boy: · 31st July 2006, 17:28

I have had my default on my Credit file removed from HSBC (credit card), as they could not supply me with a 'true and signed copy of the original default notice'.

Best regards

Robertxc · 31st July 2006, 17:52

Quote:

Originally Posted by D5Tweddle

I have had my default on my Credit file removed from HSBC (credit card), as they could not supply me with a 'true and signed copy of the original default notice'.

Best regards

Interesting. How much arm twisting did you have to do?

:Boy: · 31st July 2006, 19:15

No arm twisting, honest.

I used a template that I got off this forum, and hey presto, I recieved a letter from HSBC, stating that 'due to the age of the account, we are unable to provide copy (of) documentation as required. A request has been made today to remove this record from your credit file'.

I checked last week and the default has been removed from Experian & Equifax. The debt was for £1300 (roughly) and not made up of charges.

God honest truth it took 15 days!

If you want a copy of the letter I sent, I will be happy to oblige.

Best regards

David

ninekey · 31st July 2006, 23:56

Wow, well done. This puts you in the category of the elite few! Would you mind zipping me the letter that you used? I'm soon to try to persuade the Mighty Egg to remove a default entry on my file. Not such an easy road ahead, I fear!

sammy115 · 1st August 2006, 07:38

I am with the Abbey. When my OH got made redundant and then I got made redundant too (and consequently going to employment tribunal) Abbey threatened to withdraw our Overdraft. On the promise that both our salaries got paid into the bank they would not withdraw the overdraft. However, before our salaries were paid in they wrote to us to tell us that they were taking the overdraft off us. This meant I had no choice but to put my money somewhere else otherwise we could not have eaten! I then made proposals to pay by email - was ignored. I then sent a recorded delivery letter with my proposals - which they ignored. I then telephoned them to be told that they were awaiting the outcome of my court case for reclaiming charges and they would put the account on hold for two weeks. NOW they are threatening to default me in the next week. I have managed to get a stay of execution for a month but this means me trying to find £3,000 by the end of the month - no mean feat. I feel like I am being threatened due to my claim for bank charges.

Ferru · 1st August 2006, 18:21

Could you post a copy of your letter please?

Regards

Jeff

Quote:

Originally Posted by D5Tweddle

No arm twisting, honest.

I used a template that I got off this forum, and hey presto, I recieved a letter from HSBC, stating that 'due to the age of the account, we are unable to provide copy (of) documentation as required. A request has been made today to remove this record from your credit file'.

I checked last week and the default has been removed from Experian & Equifax. The debt was for £1300 (roughly) and not made up of charges.

God honest truth it took 15 days!

If you want a copy of the letter I sent, I will be happy to oblige.

Best regards

David

:Boy: · 2nd August 2006, 18:25

Hello, below is a copy of the letter that I sent.

Best regards

20th June 2006

Dear Sir/Madam
Account number – 5434 XXXXXXXXXX

After recently obtaining a copy of my credit file from Equifax I was concerned to note that your company has placed a "Default" notice against an account in my name.
Further to this I have no recollection of ever receiving such a notice, and I therefore require you to substantiate this data at your earliest convenience.
1. You must supply me with a true copy of the alleged agreement you refer to. This is my right under your obligation to supply a copy of the agreement under the legislation contained within s.78 (1) Consumer Credit Act 1974 (s.77 (1) for fixed sum credit). Your obligation also extends to providing a statement of account. I enclose a £1 cheque in payment of the statutory fee, Cheque number 100171.
2. You must supply me with a signed true and certified copy of the original default notice
I would request that this data is provided to me within the next 14 days, if you are unable to provide this data then I must insist that it is removed from my files as unsubstantiated.

Yours faithfully

David

Hope this helps.

moony · 2nd September 2006, 23:04

here is a link to a website with template letters for removing defaults
Remove Default Notices on a Credit File - We show you how

bp · 3rd September 2006, 13:57

Sorry if this sounds silly but is receiving a default notice the same as being warned that if you don't pay up you may be defaulted against?

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