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Are arrears cumulative or consecutive? Defaults, CRAs etc


pappydu
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I have a loan on which I am currently up to date.

 

I have had arrears in the past and for a period of 12 months was up to 2 cumulative payments in arrears.

 

I had arrangements to clear lasting 6 months at a time each and they were back to back. At the end of the first arrange I had a terrible month at work (self employed so does get bumpy) so was still behind so came to a second arrangement.

 

After complaining about something recently the lender has defaulted me as of 13 months ago and refunded me all interest charged in between.

 

The are saying that as I was in arrears for more than 6 consecutive months I am in default. I though I couldn't be defaulted if I was less than 3 months cumulatively in arrears.

 

They are clarifying with their legal and credit team.

 

Anyone out their know the answer?

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Well this is a grey area, A default is usually issued when the company concerned believes that the relationship has broken down between a Consumer and itself, however there is guidance in place.

Whats defaulted is defaulted. Each company has separate criteria for defaults etc, So its hard to give guidance.

 

Who is the creditor?

 

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