Default notice

[palomino]

The following is a letter from Alliance & Leicester received by my wife. It relates to her current (cheque) account which is overdrawn -

 

 

In the last paragraph they say that the 'default status' of the account will be referred to a credit reference bureau (if the balance is not cleared).

My wife has had several letters recently from A & L - this being the most recent - but none of them mention anything about default.

 

Is a default notice required for overdrafts on current accounts?

 

Does the above letter constitute a default notice?

 

Can they report the matter to the credit reference agencies without a default notice?

 

 

 

Thanks for your help.

Edited July 3, 2008 by palomino
Clarity

[Tartan Barty]

There is a specific layout required for default notices with certain prescribed terms. I thought there was a sub-forum just for default notices but can't seem to find it. The letter may constitute a default notice but it sounds unlikely. You should maybe scan it and put it up on here (minus ALL personal details) so everyone can comment.

 

An overdraft is credit (running account) so they can default you and put it on your credit file. You may find that they will report it to the credit agencies without a default notice but it would be unlawful and people here could help you start your battle!

 

You would be best of getting your wife to get hold of a copy of her credit file from the 3 agencies to see what's on there.

 

Hope this helps

[loislanehere]

Sounds just like a threatening letter to me. Someone will be here soon who can give you some legal advice...from experience most people are on in the afternoon or evening.

 

In the mean time, here are some letter templates that can help you to respond.

http://www.consumeractiongroup.co.uk/forum/general-debt-issues/20758-creditors-dcas-letter-templates.html

Have you asked them for a S.A.R (subject access request?) or a CCA?

 

These will buy you some time and also let you know only what you legally have to pay.

 

Never talk to them on the phone. And if they call you or your wife only accept communication in the form as writing and hang up.

[AndyOrch]

Hi Palomino

 

 

Is a default notice required for overdrafts on current accounts? Yes

 

Does the above letter constitute a default notice? No

 

Can they report the matter to the credit reference agencies without a default notice? NO

 

I trust the above clarifies your concerns

 

 

Regards

Andy:)

[loislanehere]

clicked your scales andy-top advice!

[palomino]

Hi Palomino

 

 

Is a default notice required for overdrafts on current accounts? Yes

 

Does the above letter constitute a default notice? No

 

Can they report the matter to the credit reference agencies without a default notice? NO

 

I trust the above clarifies your concerns

 

 

Regards

Andy:)

 

 

Andy, Many thanks for your comments. Much appreciated.

I shall tell my wife to challenge A & L on the issue.

[AndyOrch]

Also for anyone else with any doubts about a DN if recieved

 

 

What might constitute an unenforceable default notice will include any of the following:-

 

Wrong name of debtor, incorrect spelling, no name.

No name of creditor, incorrect spelling.

Wrong address of debtor, incorrect spelling, no address.

Wrong address of creditor, incorrect spelling, no address.

Wrong a/c number, no a/c number.

No date and or the wrong or no prescribed time for compliance with the DN.

An incorrect amount stated to remedy the contractual breach, which for example would include an amount that includes penalty charges.

The specific details of the breach are not explained.

It is not clearly stated that it is a default notice.

 

These are just some examples, there are others concerning layout and content, just as with credit agreements, so everyone should scrutinise DN's very carefully indeed! I don't think I have seen one DN that has been valid and I have seen plenty. They have all been faulty in some way. Given the serious consequences of being defaulted it is vital that the DN is examined for defects.

 

In any Court claim as part of a c/c, damages should be sought for unlawful termination of the contract, where it is found to be faulty in some way.

 

I hope this is useful.

 

Regards

Andy;)

Edited July 3, 2008 by Andyorch

[loislanehere]

Andy, Many thanks for your comments. Much appreciated.

I shall tell my wife to challenge A & L on the issue.

 

 

Just make sure she doesn't ACKNOWLEDGE any debt or charges..

 

Send a CCA, the template can be found at this link Consumer Credit Act template - Consumer Wiki

 

Just insert your details in there...it will buy you some time and enforce the 'legal' side of things on there behalf.

[palomino]

Just make sure she doesn't ACKNOWLEDGE any debt or charges..

 

Send a CCA, the template can be found at this link Consumer Credit Act template - Consumer Wiki

 

Just insert your details in there...it will buy you some time and enforce the 'legal' side of things on there behalf.

 

I'm afraid that the CCA doesn't cover current accounts so this letter is irrelevant in the circumstances.

 

Instead I've drafted a letter for my wife basically saying that any attempt to refer the matter to the credit reference agencies without a default notice will result in a complaint to the Financial Ombudsman Service. We'll see what that flushes out of the woodwork.