Account Defaulted with CRA's before DN - DEBT SOLD within days to DLC!

[meerkatsmimm]

Hi all,

 

Have very, VERY poor internet connection so apologies for not being around!

 

Catching up on some paperwork and hey-ho discovered my hubby's account was terminated at the end of July 2009 - the DN didn't arrive until 18th August 2009 and we were given til 29th August to remedy - although they were asking for full balance and not just arrears!

 

Account was sold on to a company called DLC on 17th August - just a few days after the DN was dated!

 

What is the legal standpoint here?

 

The account has been in dispute since March/April due to not supplying a valid agreement - still haven't, in fact, they have stated that they cannot locate one!

 

Would appreciate your assistance ladies and gents,

 

Thanks,

 

meerkat xx

[cerberusalert]

Send them the 'Bemused' letter http://www.consumerforums.com/resources/templates-library/86-debt-collectors/574-letter-when-account-has-been-passed-on-whilst-agreement-request-is-in-dispute

 

If they've asked for the full amount on the DN then that's defective too.

[meerkatsmimm]

Just about managing to get logged on - dial up speed mobile broadband with no reception = never getting anything downloaded!

 

Thanks for the link cerber - will get a look as soon as my internet is back to a 'normal', usable speed!

 

have sent off a CCA request to DLC.

 

if the debt was defaulted before a DN was issued what would then be owed to the creditor? Is this also a case of just the arrears as the account was terminated before giving notice to rectify the issue?

 

the DN asks for full payment - so i'm assuming that if the account had not already been defaulted we would only be due to pay the arrears, or the sum needed to bring the account up to date?

 

Also received some documents in response to a SAR from OC - which strangely enough included a hand-written letter form a guy in Liverpool - got his address, account number and signature!

 

Anyway - hope to get back online properly soon - take care.

 

meerkat xx

Edited August 30, 2009 by meerkatsmimm

[cerberusalert]

Also received some documents in response to a Subject Access Request from OC - which strangely enough included a hand-written letter form a guy in Liverpool - got his address, account number and signature!

Complain to the ico https://www.ico.gov.uk/Global/contact_us.aspx because they've breached the data protection act & also contact the guy who's details you've got so he can make a complaint too......& invite him to join CAG.

[postggj]

Just Jumping In

Where Did The Default Come From, Not From Dlc I Hope

Check The Envelopoe

Was It Posted In Brackley

[meerkatsmimm]

Right - had a good look again.

 

the DN states that the account has already been defaulted - can this be done??

 

Can the OC place a default on your credit file before sending a DN?

meerkat xx

[postggj]

no is the answer

 

a default notice is a legal document giving the debtor 14 days to rectify the default

 

can you post up the dn

[meerkatsmimm]

postggj,

 

i've been cut off by bt so i'm using a really poor mobile broadband connection and even attempting to upload the scan would create meltdown!

 

i'm hoping to be up and running again by the weekend and will get the paperwork uploaded for this and a few other things i have issues with.

 

I should be able to input the content below:

 

Important - You should read this carefully

DEFAULT NOTICE

Served under Section 87(1) of the Consumer Credit Act 1974

 

Dear Mr Meerkat,

 

Credit Card Agreement: 1234567812345678

 

We refer to the above agreement which you have entered into with us. You have repeatedly broken your agreement with us by failing to make your minimum payments. Paragraph 8f of your credit agreement provides that, subject to sending you any notice required, you must immediately pay your whole balance if you repeatedly break your agreement and fail to sort the matter out. A stop has been placed on your card and a default has now been registered against this account at the credit reference agencies.

 

This statutory notice is to tell you that, in order to rememdy this breach, you must pay the full amount of your outstanding balance which is £5555.55 by 29th August 2009.

 

IF THE ACTION REQUIRED BY THIS NOTICE IS TAKEN BEFORE THE DATE SHOWN NO FURTHER ENFORCEMENT ACTION WILL BE TAKEN IN RESPECT OF THE BREACH.

 

IF YOU DO NOT TAKE THE ACTION REQUIRED BY THIS NOTICE BEFORE THE DATE SHOWN THEN THE FURTHER ACTION SET OUT BELOW MAY BE TAKEN AGAINST YOU.

 

On or after the date shown, your account will be closed and your credit agreement will be terminated. We may also take court proceedings to recover the whole amount owed by you.....

 

Yours Sincerely,

 

Head of Recovery

 

 

i've left out the bit at the end which just included the reference to the OFT leaflet included etc etc.

 

the Date on the DN is 13th August 2009 now looking at it and they have given until 30th August for remedy. the debt was sold on 17th August I think. The account was defaulted with the CRA's on 30th July 2009.

 

The thing is the agreement that the OC sent seems to contain all the prescribed terms - but no section 8f.

 

What is the situation now - can the new DCA still pursue me for the full amount or is this a case of unlawful recission due the DN not being served correctly?

 

Have sent the DCA a CCA req, let them know that the account was in dispute with the OC and that they should really send it back to them. Also asked them to supply a copy of the Assignment.

 

What do i need to do now?

 

Would appreciate all advice.

 

meerkat xx

[42man]

If you can prove that they sold the debt on, then your thoughts are spot on.....did they send you a letter of termination (even though they obvioulsy terminated the day they sold it on !!) i'd say that it was an unlawful recission of contract.....

[meerkatsmimm]

If you can prove that they sold the debt on, then your thoughts are spot on.....did they send you a letter of termination (even though they obvioulsy terminated the day they sold it on !!) i'd say that it was an unlawful recission of contract.....

 

Hi 42man,

 

i have the original default notice, then a letter dated 4-5 days from OC telling us that the debt has been sold to direct legal and giving us their name & number for future enquiries.i then have a letter dated 25th august fro dlc telling us that hillesden securities ltd (trading as dlc) have been assigned the debt.

 

what does this mean in terms of enforcing the debt - as i said the application form seems good but the default seems wrong.

 

meerkat xx

[42man]

You could possibly write to them disputing the fact that they had sold the debt whilst the 14 days was still active....and therefore an unlawful recission of contract and how do they going to compensate you.....!!...as long as you have proof of the debt being sold then they have ignored their duties in relation to the CCA1974....however it would be even better if you had a termination letter....but you have the assignment from DLC....!! hmm a tricky one....and not one I have come across MKS...

[meerkatsmimm]

Thanks again 42Man,

 

In the original creditors letter, they do state that on or after the date they allow for remedy of the breach, they will cancel the account and terminate our agreement.

 

Where does that leave us with the documents we have at present? Do we make them aware of the unlawful recession?

 

We arent intending to pay the DCA anything and have told them as much. We were making a token payment to the OC, but this has not been transferred on with the sale/assignment.

 

It seems a strange one, but have they made enough mistakes now that we can pull the rug out from under them and if so, what is the best move?

 

We had thought of using a solictor to send a firm letter, as the OC has never listened to our disputes in the past and I doubt this DCA will either.

 

Thanks,

 

meerkat x

[landy_alert]

Hi meerkatsmimm:)

 

Subbing with interest if that's ok as we have a similar, but not identical situation with MBNA on an account held by Mr Landy.

 

He received a DN on 6th Feb with a remedy date of 23rd Feb - unfortunately this was before we realised the importance of keeping envelopes, but we marked it as received on 10th Feb.

 

The account was assigned to Apex on 18th Feb, although as it didn't become active with Apex until 25th Feb I wasn't sure whether this counted as unlawful recsission.........I'm still trying to learn about all this I'm afraid:(

 

We didn't check with the CRAs so don't know when the default was registered.

 

Although Mr L's account wasn't terminated before the default, I hope to learn something regarding the unlawful recsission aspect by following your progress if you don't mind?

 

Regards,

 

Landy x

[meerkatsmimm]

hi landy,

 

if you do an online check of your credit report the system will tell you the date the account was defaulted.

 

hope that this helps.

 

meerkat xx

[landy_alert]

Hi meerkat:)

 

Thank you - will do!

 

Regards,

 

Landy x

[Undercover-Elsa]

Hi Meerkat

I can't believe how they think they can ride roughshod over not only your OH but the Consumer Credit Act.

The whole point of a DN is to provide a remedy for a breach, in that if you carry out the remedy then the account continues as normal. ie with the ability to pay it off over the agreed period.

That incompetent effort is a mongrel of a combined DN and TN, in that they've already demanded the full balance in advance of termination, and given you a remedy which does NOT reinstate the account to it's former status. Sheesh!!

The wording is weird too..surely doesn't comply with the prescribed format?

Treasure this one..it's gold dust!

[meerkatsmimm]

i'll not get my broadband up and running again until next weekend but when i do there's lots of updating to be done!!thanks elsa - as always meerkat xx

[Undercover-Elsa]

Arghhh I know how you feel...I'm virtually disabled without my PC!

Just getting ready to format mine so if I disappear for longer than a day send a CAG search party!