I'm in the process of cleaning up my credit report and have realised that the way defaults are reported are not particularly helpful!
I had a new car on HP in 2010.
Ran into difficulty quite soon into the agreement but worked with them to keep it fairly up to date.
During the course of an 18 month period I fluctuated between one and two payments late, never more than two.
Then my finances got worse and I ended up 3 payments behind.
I made an arrangement with them and brought the account back up to date fairly quickly.
I then missed a single payment and they defaulted my agreement.
I did bring the account back up to date fairly quickly and since then have been on time.
I am still up to date with the agreement which ends in 2 months time.
My history with them goes : 0 1 0 1 1 2 2 1 1 2 2 1 1 1 2 2 3 2 0 0 1 D (then 3 years worth of Ds)
Since the default I've been up to date with payments, with one slight slip into 1 behind for about 3 months in 2013.
But the recent credit report history just shows DDDDDDDDDD etc...
even though I've been on time most of the way through the agreement.
This doesn't seem very fair to me, and
since they defaulted me on a single payment behind I've been trying to argue (unsuccessfully so far)
with them that the account shouldn't have defaulted.
interestingly one of their staff agreed with me on the phone that the default was an error and should be removed.
Unfortunately when I checked on this they denied that was ever said!
My question is :
Since interest should not be charged on defaulted accounts, and since the interest was front-loaded, should I be able to claim a rebate of the interest?
The effect of this would be that I've now overpaid on the agreement and would be entitled to a rebate.
IF indeed it was correctly defaulted.
Obviously if the default was a mistake then they can simply correct my credit record and I'll complete the payments as agreed.
If a rebate should be due how do I calculate the correct amount of interest on the loan?
I wonder if it would also be better to record defaults as D0, D1, D2 etc..
. reflecting the payment status of any payment plan in place to clear the default
- Just a thought!