Default during dispute

[thegoodgirl]

Hi, this is my first time posting, so please be patient with me!

 

I have been experiencing financial difficulty for a little while. I ran up my credit cards while at university and the resulting interest has made it difficult to clear the debts. I have been late making payments and the penalty fees have pushed me further into debt and in on a couple of cards - over my credit limit which has resulted more excessive charges.

 

Barclaycard are proving to be most difficult to deal with at the moment. After I had a couple of Direct Debits declined by my bank (A&L a whole other story...) Barclaycard cancelled my DD facility, and even though I have requested the forms to set up a new DD numerous times, over the phone and in writing, 6 months one they have still not arrived. Therefore, I am reliant on posting cheques and/or making payments at the bank, however as I work away a lot, I do not always open my post as soon as it arrives, and have therefore, been late making payments. However, I have always made the payments within 7-14 days of the due dates.

 

Anyway (sorry for rambling - I'll try and make this brief) I have not actually used my Barclaycard for over a year, yet the current balance of £470 (which exceeds my limit of £350) is made up of at least £300 worth of late payment, returned DD and fees.

 

on the 25th May I used the initial template letter from this website detailing the ruling from the OFT and requesting that they review the fees applied to the account and consider refunding them. I received a letter saying they would look into it. Having not had a reply I wrote again on 5th July asking for a response. I received a letter on 10th July apologising for the delay, saying they would endeavor to resolve matters by the 3rd August.

 

Well I still haven't heard anything. I have continued to make the payment, although the last 2 have been a few days late (better late than never you'd hope?!) But this week I received a Default Notice from Mercers claiming that I still owe them £120 to bring the account back to order!!! This letter states that I have until 7th September to make the payment otherwise they will inform the credit agencies, so am I right in thinking this is a warning? I have no problem making the payment, but having read a few other threads, I am confused as to whether they can do this while I am in dispute with them? I haven't actually started any 'legal' proceedings yet apart from the letters, to which I have had no satisfactory response.

 

Should I check with Mercers as to whether this is an actual Default or just a warning, and if so, do I have any grounds to request that Barclaycard do not mark this on my records???

 

PS. Sorry for the long-winded post I wanted to make sure you had the full story

[pugsley]

same thing happened to me

[thegoodgirl]

Hi Everyone.

 

I have now received a letter from Carl Nuttal, saying that he disaggrees with my legal anaylsis supporting why the charges were unfair/unlawful, but without admitting liability he is willing to offer a goodwill gesture to credit me with the difference between the charges I have incurred and the £12 fee recommended by the OFT, this amounts to £120 approx half of the charges applied to my credit card.

 

Presumably I should now send the letter accepting this gesture as a part-partment but do not accept as full and final payment?

 

Also any suggestions about the Default. Does the fact that we have been in correspondance about this disoute mean that they cannot issue the default??? I'm confused!

[Spiceskull]

My view is that as long as you have sent an LBA, and that this informs the bank that unless they satisfy your claim you will begin court action, then yes, the account is in dispute. If they pass details to a third party then they will be in breach of s.10 of the Data Protection Act, as well as in breach of the banking code.

 

It is possible that the letter was a warning, and that they realise they cannot pass your details on. If so, then they are clearly trying to scare you.

 

Best suggestion would be to write to them again, and inform them of the breaches they will be making should they proceed with the notices. There are many threads that deal with this, as well as some good letters. If you have a search for 'dispute' you should be able to find some.

[thegoodgirl]

Thanks Pheonix, I will research some more before responding.

[thegoodgirl]

Hi Guys,

The initial letter I sent was in May, and it included the template paragraph threatening court action, however, I did not entitle the letter "LETTER BEFORE ACTION" sorry to be so naive, but does this matter?

 

Thanks!

[Spiceskull]

If you send another letter, and make reference to your first letter by date, then you should be okay.

[thegoodgirl]

Hi Y'all.

 

Since deadline is 07.09.06 I have just faxed Mercers to inform them of the dispute. CC'd fax to Barclaycard too.

 

Awaiting response.

 

Also still waiting for copy of my credit report from Experian, to see what other delightful tricks the other lenders have pulled.

 

Went into Barclays today as default letter from them (sent the same day I paid in installment!!!) I thought that I was up to date but turns out I missed a payment in January that they had stopped including on statements. Idiots. I made the payment today and they have told me that no further action will be taken. Bizarre. Personal banker was very helpful. Polite and non-judgemental, how refreshing!!!

[thegoodgirl]

Forgot to say...

 

Preparing letter accepting offer as part payment, but informing them of my intention to claim for full amount and requesting that default is not applied to the account.

[Spiceskull]

Don't forget to mention that any attempt to enter a default is a breach of s.10 of the Data Protection Act...good luck.

[thegoodgirl]

Pheonix, I'm probably being a bit dumb, but I've read S10 and I don't fully understand why it is in breach, could you explain for me?

[thegoodgirl]

Hi Y'all.

So I faxed and sent letter to Mercers CC'ing them about the Default Notice.

 

Then I thought, I will just check with Barclaycard to see if there are any outstanding payments due (the letter from Mercers said there was) so I called BCard, and guess, what? They have credited my account with £200 not the £120 they originally offered! No outstanding payments required. Balance of the card is not with the credit limit.

Anyhow, I still intend to contest this as found a few more old statements and total charges now totals £324, still missing 2 months, but I think I know where they are, once I have these I will complete the schedule of charges spreadsheet and write a nice letter back to Carl Nuttal... presumably they will then take their £200 back?

[Spiceskull]

Section 10 is on this page:

 

The best bit is:

(a) the processing of those data or their processing for that purpose or in that manner is causing or is likely to cause substantial damage or substantial distress to him or to another, and

 

Effectively if they enter a default against you it is more than likely to affect your credit rating, and also things like applying for mortgages etc. Most people would call that 'substantial damage,' and at the very least it is a distressing thing to happen...

[Spiceskull]

presumably they will then take their £200 back?

Probably not, but you will need to amend the amount you are claiming to allow for this. If your claim is £320, then settlement of the claim is the remaining £120...

[thegoodgirl]

thanks for your help. much appreciated