Anatomy of a Default Notice

[Guest]

the dates do seem ok.

one minor non compliance is that the underlined text should be 'yet more prominent' then the rest of the text in that paragraph (para 5b of the Regs) ie should also be in bold or italics for eg.

also, there seems to be a poss issue of whether the account mentioned is correct or not?

imo

[hatesdebt]

Thanks all.

 

Yes, as I mentioned, they call it an o/d, whereas it's definitely not - it's a credit card.

Would that make a difference?

[Guest]

have you previously done a request for documentation on this? if so, what was their response?

[hatesdebt]

Thanks Ford,

 

No, I'm about to do battle, so will be requesting a CCA shortly.

When I do, I'll start a new thread, as to not clutter this one.

 

It should be interesting!!

 

From what I know, they refer to it as an od, so they say cca1974 does not apply, but they send a dn in accordance with the cca1974? It's registered as a credit card, so DOES come under the act.....My brain hurts - LOL

[Guest]

OOI. does your dn state what the o/d limit is (top right)?

do you recognise it as an o/d account or a credit card account?

[FCC]

Found this on the banana site. Hope it's not been posted before and it helps the discussions. Dated march 2011

Section 3

 

 

: Credit reference agencies

36.

 

When customers apply for a credit product, subscribers should tell them if checks (searches) will be made at credit reference agencies (CRAs) and if a record of the search is kept at the CRA and, if so, that this could impact the customer’s ability to obtain credit elsewhere within a short period of time.

37.

 

At the same time, subscribers should also tell customers if details of the account, if opened, will be passed to CRAs and that that information will be accessed and used by others. This will include information about the running of the account such as the limit and balances as well as payment performance. The Information Commissioner accepts that such permission may be made a condition of borrowing.

38.

 

See also the Information Commissioner’s Guidance on the Data Protection Act 1998 which sets out the conditions under which data may be collected, shared or processed. (Useful information can be found at www.ico.gov.uk)

39.

 

The requirement to share data does not apply in specialist customer segments such as private banking where sharing CRA data is not always appropriate.

40.

 

Subscribers can give CRAs default information about a customer’s debts if:

1. the customer has fallen behind with their payments;
   

1. as industry best practice, provide an indicative quotation, in respect of which any credit search undertaken is not registered as a full application search at CRAs i.e. it is not used by lenders in their risk assessment; or

    

   inform the customer that it does not offer an indicative quotation facility and ensure that the customer is aware that, if they proceed, an application search will be registered at the CRA(s).3

    

   3. is operational from July 2011

    

   http://www.lendingstandardsboard.org.uk/docs/lendingcode.pdf

   
   
2. 
   the amount owed is not being disputed by the customer; and
   the customer has not made a proposal that satisfies the subscriber for repaying the debt following the subscriber’s formal demand.
   41.
   But, in all cases, the customer must be given further notice of the intention to disclose the information at least 28 days before the disclosure is made (for example, when a default notice or formal demand is given). At the same time, customers must be given an explanation about how default information registered against them may affect their ability to obtain credit in the future. This notice will mean that customers have 28 days to try to repay or come to some arrangement with the subscriber before default information is passed to the CRA.
   42.
   For the purposes of the second bullet in paragraph 40, a customer dispute is relevant if it refers to the amount of money owed by the customer and is genuine, reasonable and unresolved. Further detail is provided in the ICO guidance referenced below.
   43.
   Subscribers should refer to the Information Commissioner’s Data Protection Technical Guidance on Filing Defaults with CRAs (www.ico.gov.uk).
   44.
   If a customer asks, subscribers should tell them which CRAs they use and how to get a copy of the information CRAs hold about them, or give the customer a copy of the Guide to the Lending Code and/or one of their leaflets that explain how credit referencing works.
   45.
   If an application for credit is declined, subscribers should advise the customer if information from CRAs made a contribution to the decision and advise the customer to obtain a copy of the information that CRAs hold about them, preferably before making any further applications.
   46.
   If a subscriber offers an indicative quotation facility for a risk-priced credit product, it should be transparent about the availability of this facility.
   47.
   If asked by a customer for an indication of the likely interest rate for a risk-priced product, subscribers should either:
   
   
3. 
   
4. 
   

Edited October 10, 2011 by FCC
more info

[hatesdebt]

OOI. does your dn state what the o/d limit is (top right)?

do you recognise it as an o/d account or a credit card account?

 

Hiya,

 

Yes it does state an od limit, but without doubt this works as a credit card and is registered as such with the cra's.

They try to describe it as a bank account, with an overdraught on which you can draw down. However, there is no facility to pay wages in or make dd's / so's etc - so it's NOT a bank account.

 

They have really screwed up on these accounts....

[hatesdebt]

Thanks for that FCC..

[FCC]

I posted the above because para.41 seems to have increased the 14 days to 28 which is a great difference from what is stated in post 1 of this thread. ( ? )

[MandM]

I posted the above because para.41 seems to have increased the 14 days to 28 which is a great difference from what is stated in post 1 of this thread. ( ? )

 

Hi FCC.

 

Para 41 only relates to the time period before information is shared with the CRAs. The 14 days in post 1 is the time given to remedy the default/satisfy the DN.

 

Mike

[means2anend]

Here is the BRANDON APPEAL

 

http://www.bailii.org/cgi-bin/markup.cgi?doc=/ew/cases/EWCA/Civ/2011/1187.html&query=title+(+brandon+)+and+title+(+v+)+and+title+(+american+)+and+title+(+express+)&method=boolean

 

rgds

m2ae

[means2anend]

It would appear that the DE-MINIMUS rule has been BUSTED!!!

 

And also..

 

It appears that alternative pleadings of Default and Non-Default terminations are allowed provided it is done so early enough and NOT as late as it was in this case on APPEALS....

 

I have only skimmed read but if I am wrong I am sure that Iwill be humbly corrected!!!

 

 

nm2ae

Edited October 30, 2011 by means2anend

[means2anend]

The only thing absent...the issue appeared not to be raised .... unless anyone else can point it out...is HOW MANY GOES can they have to 'correct a defective DN'..before termination of a default or non-defaulted account

 

m2ae

[means2anend]

And WELL DUN MR BRANDON..for taking the time ...risk and GUTS ..thanks again!!!:whoo:

 

m2ae

[basa48]

It would appear that the DE-MINIMUS rule has been BUSTED!!!

 

And also..

 

It appears that alternative pleadings of Default and Non-Default terminations are allowed provided it is done so early enough and NOT as late as it was in this case on APPEALS....

 

I have only skimmed read but if I am wrong I am sure that Iwill be humbly corrected!!!

 

 

nm2ae

 

Agreed - the issue of contractual v default termination is important. I would, from reading the judgement, assume that once a creditor has issued a default notice and terminated on the strength of it cannot later change its mind and rely on contractual termination.

[means2anend]

Hi Basa..good to hear from you!

 

Yes!

 

Statutory requirements take precedence over private agreements....otherwise it would be possible for us to over-ride the will of Parliament...and all sorts of nasty consequences could happen...That is why The Lord Justice saw that somwhere in clause 10 (think...in the terms and conditions . AMEX may have also breached Unfair Terms etc... Regs 5(1) in the event that 'all things were equal'

 

rgds

m2ae

[dadofholly]

Hiya,

 

Yes it does state an od limit, but without doubt this works as a credit card and is registered as such with the cra's.

They try to describe it as a bank account, with an overdraught on which you can draw down. However, there is no facility to pay wages in or make dd's / so's etc - so it's NOT a bank account.

 

They have really screwed up on these accounts....

 

What was it called when you applied for it - did you have to fill out a form in application?