Hi, I had a general query I was hoping somebody could help me with.

On CheckMyFile .com it states:

Notice Of Default

Definition of 'Notice Of Default'

A formal letter from a lender sent when you fall in arrears.

The notice sets out the arrears and what you have to do to put things right, within 14 days.

Failure to respond to a notice of default results in a default,

which appears on your credit file for six years,

irrespective of whether you subsequently pay the account in part or in full.

The notice is required before creditor (lender) can take any of the following five actions:

terminate the agreement, repossess goods or land, demand earlier payment of sums due

under the agreement, treat as restricted, terminated or deferred any of the debtor’s rights under the agreement and enforce a security.

It applies to all types of breach of a regulated agreement, not just default in payment and is only applicable where the creditor intends to take one of the five types of action. A simple reminder not threatening one of these actions is not a Default Notice and not governed by Consumer Credit Act 1974.

Is this an actual rule?

Must a lender issue a default notice 14 days before issuing a default?

tell us about the debt please

dx

The is debt is Indigo Michael - Safety Net Credit - Clear account when I set it up. £392.00

Date opened 28/01/2014.

I changed my online banking passwords in May 2014

so it has showed on noddle as late payment for a year and a half.

A default was applied 31/01/2016 and the account was closed.

I have definitely defaulted and had I received notice I cannot afford to pay in full,

I was just surprised I didn't receive any notice.

I have not actually had any correspondence from them at all which is odd.

They have the right address.

I am a full time student.

What is the amount they're claiming you owe now?

Are the still adding interest?

No interest is being added, the debt is at £392 and has been at £392 since July 2014.

Since they had not chased me and in hadn't changed it was a low priority.

I would have liked to avoid a default if I could but that was just added.

I can still log in and view the statements.

moved to the PDL forum and retitled

I have received an email today from safety net credit, they are prepared to write off the entire outstanding balance.

I am going to try and get them to remove the entry from my credit file as well and recover fees etc

Well if they're going to 'write off' the debt, then surely the fees they have levied will be written off along with it?

Sounds like they know they have acted irresponsibly and don't want dragging over the coals for it.

What did the email say?

They say they have carried out a full investigation and that carried out all required checks and saw nothing of concern on my call credit, credit report.

"As already alluded to, we performed a credit search at the credit reference agency Callcredit and there was nothing to suggest we shouldn’t extend credit."

My very low rating, £5000+ debts and 11+ defaults didn't concern them.

They go on to say -

"Having reviewed your complaint and understanding the situation that you now find yourself in, as gesture of goodwill, we are willing to write off the remaining balance owed of £392.00 in its entirety. This means that repaying the outstanding balance will be waived and the account closed, drawing a conclusion to the matter."

As long as they remove the entire entry from my credit report, I will accept this resolution.

I'd accept it regardless, one more default isn't going to harm your CRF, not if you have 11 previous markers on there.

I will, the only reason I'm attempting to get this one off is that they applied it January 31st so it wouldn't be off until 2022. The other were already on there and will come off much earlier. It's going to be a long time before I have anything resembling a decent score though.

Yeah, I figured it was something like that after I hit 'post'.

Plus I would 'think' that they would remove it in its entirety as there is no account to 'service' so they would have no reason to be reporting how the account is run to the CRA's, so I would think that they will remove it anyway?

I will apparently have a response within 24 hours from my email I sent yesterday. So within the next 4 hours if that automatic message is to be believed

Well I have received the final response from safety net credit:

£392.00 outstanding will be written off, and the record will be removed from my credit file.

They will also refund £237.29 which is the amount I had repaid plus interest.

Very pleased with that, and only possible because of all the information that is on this forum, so big thanks

I changed my online banking passwords in May 2014

so it has showed on noddle as late payment for a year and a half.

Could you just expand a bit on this please, what has your bank password got to do with it ??

Saftey Net credit almost acts like an automatic payday loan.

In order to use their service you must give your online banking ID and password. They automatically add money if you balance gets low and take it back when it get higher.

This might work for somebody who has their finances in order to help avoid unauthorised overdraft fees. Sadly, I borrowed the full amount and then it would repay when I got paid and I do it again, so it was just a rolling loan facility for me.

In order to use their service you must give your online banking ID and password. They automatically add money if you balance gets low and take it back when it get higher.

Are you serious?

Even my bank doesn't ask for that information? That is an extremely dangerous, and I would like to think, totally unlawful method of borrowing?

This might warrant further investigation by the ICO, this is clearly not right.

Yes, totally serious, I took the loan around 3 years ago but they still operate in the same way, the only difference is they were called clear account when I first used their services. The can automatically withdraw and make deposits. I changed my passwords as I was scared they would automatically take any payments I put into my account.

I was desperate for the money so gave the information.

Yes. I've just been on their website to have a look see, and it seems they have the full backing of the FSA to ask vulnerable people for their bank details!

Truly criminal IMO, exploiting the vulnerable, what a vile industry.

Saftey Net credit almost acts like an automatic payday loan.

 

In order to use their service you must give your online banking ID and password. They automatically add money if you balance gets low and take it back when it get higher.

 

This might work for somebody who has their finances in order to help avoid unauthorised overdraft fees. Sadly, I borrowed the full amount and then it would repay when I got paid and I do it again, so it was just a rolling loan facility for me.

Are you serious?

 

Even my bank doesn't ask for that information? That is an extremely dangerous, and I would like to think, totally unlawful method of borrowing?

 

This might warrant further investigation by the ICO, this is clearly not right.

I have never ever heard of such a thing and as said above, exceedingly dangerous. You have no idea who these people are. If you haven't already, I suggest you log off CAG and go and change your password now and make it a strong one.

Never ever give your password to anyone. Even your own bank will never ask for that.

In future, payments by direct debit or standing order only.

Yes. I've just been on their website to have a look see, and it seems they have the full backing of the FSA to ask vulnerable people for their bank details!

 

Truly criminal IMO, exploiting the vulnerable, what a vile industry.

Does it actually say that as having a license isn't the same as backing their methods ?

Does it actually say that as having a license isn't the same as backing their methods ?

No not in so many words, I just saw that they are 'approved' by the FSA, so you're probably right in that they do not know this practice is going on.

I just find it incredible that they can even think of asking for this information???? Truly dumbfounded!

SafetyNet Credit’s service requires us to have read only access to your internet banking. You need to disclose your online banking log-in details to be considered for a facility. If you are given a facility we review your balance and transactions on a daily basis and monitor any changes in your financial status.

https://www.safetynetcredit.com/how-it-works-linking-to-your-bank#howitworksLinkingAccount

Although they say it is "read only" access - the refund I have now received was for money they withdrew from my account. I never had a direct debit or standing order, and made them no payment by cheque or card. The only way they got the money was with their access to my online account.

That is why I changed all of my passwords.

I also had a loan from Safety Net Credit, a limit of £140, got in to difficulty after 6 months or so, changed passwords and changed banks, they never added extra fees or extra interest, amount outstanding was £184 so £44 worth of interest charges in 6 months, I am now paying off by standing order at £10 per month. Interestingly this came up on my credit report as a 'credit card' which I thought was odd.

It appeared in the credit card section on my report as well.

They collect data on their customers (victims) spending habits as well using the "read only" access they have to the accounts - they display stats about that on their website - seems very dodgy to me. I wish I had never been as desperate as I was when I signed up to their service.