Just fallen into trap!

[tolstoy]

I received a default notice last month for a Charge Card account which I had not made payment on since 2003. Upon receiving the default I contacted the creditor and was asked to make a 'token' payment of £20 which I did. I can hear everyone groan at my naivety! Had I not made this payment then under the terms of the Credit Agreement the creditor should have registered it as a default after 3 months without payment, and the fact that they have done nothing for 5 years would have meant that I could have taken issue with them over this. Because I have now made the token payment then they are able to register it as a default 3 months from the date of the token payment and I am stuffed! I want to cry!

[Pinky69]

I also want to cry for you because if you had not acknowledged the debt and continued doing so for another year, the debt would have been Statute Barred and they wouldn't have been able to pursue you for it ever again.

[notsoevil]

Are you in a position to offer a really low full and final? That could be your way out!

[Pinky69]

Before you offer them anything at all have you checked that they have a properly executed agreement? If they don't, they cannot pursue payment. Notsoevil works for a debt collection agency hence his advice to offer payment before checking that the paperwok pertaining to the account is in order first.

[tolstoy]

Thank you pinky. My goodness, nothing is what it seems is it! No, I shall hang on and wait to see what transpires over the next 12 days before doing ANYTHING!

[ODC]

How did you make the payment.

[tolstoy]

I made payment over the phone using Switch. Within a few days a normal statement arrived, as it has done for the last 5 years, showing exactly the same balance as ever PLUS - Payment received Thank You ---£20. So it is my guess that if I don't pay the whole amount by 23rd October THAT is when it will default, not back in 2003 when last proper payment was made. Bummer eh?

[ODC]

Personally I would get on to your bank and tell them you made the payment in error and ask them to cancel they payment.

[tolstoy]

Thanks for your help. Is that possible? Although the drawback would be that my current accounts, business and personal, together with a small loan which I took out earlier this year, (all of which are glowing green on my credit report), are all held with RBS as well as this ancient chargecard. As the small loan application and business accounts were all approved without question, it would appear that the credit card division and the personal banking division have no knowledge of each other, and until now, this chargecard account had fallen down a black hole in the system. I suppose now the two divisions will unite over this damn thing and goodness only knows what will happen then. Any suggestions?

[OnMyWayOut]

If they see the link you run the risk of them raiding the balance on your current/saving accounts under the guise of 'set-off'.

[tolstoy]

Yes, I have thought about that. I have virtually nothing in my personal accounts, but I am concerned about my business account which is only a sole trader business. Although there is nothing in it at present, obviously quite largish amounts come in from time to time when a job completes from which I need to pay the subcontractors who have done the work. If they put the snatch on that before subcontractors are paid I would be com pletely and utterly stuffed and the business, small though it is, would go straight down the pan. It's a nightmare

[tolstoy]

I expect everybody knows about this already, but I have just found out about new regulations relating to credit agreements - requests for documents, default notices etc - came into effect on 1st October 2008 http://www.oft.gov.uk/shared_oft/business_leaflets/consumer_credit/oft1002.pdf I think this explains why my creditor chose to 'default' my account last month, even though they have sent me a statement saying that payment is not due until 27th October

[OnMyWayOut]

Your business account is possibly safe if it is in the business name and not your own.

[make them aktiv runners]

If you are in Scotland it is only 5 years.

[tolstoy]

Your business account is possibly safe if it is in the business name and not your own.

 

Although the account name is that of the business, I think because it is a sole trader account, it is actually still my own account i.e. I am the account holder. So very worried!

 

Does anybody else know anything about these new regs?

[palomino]

Your business account is possibly safe if it is in the business name and not your own.

 

Not for sole traders. Accounts for sole traders are usually named as 'Joe Bloggs trading as [or T/A] Sole Trader Business Name'.