Are banks allowed to issue second or ongoing default notices?

[FSpencer]

I have default on my credit file from santander (cahoot) from 2005, the debt is still not settled though, and it's likely I'll still be on a payment plan with them for several years.

 

Since my default will drop off my file next year (it'll be 6 years), are Santander allowed to put new default notices on my file (for as long as I'm not making normal repayments and have interest frozen)? Someone told me that if they wanted, they could put a notice on my credit file every month until the debt is settled - this will be quite annoying considering I'm 6 months away from being default free.

[sequenci]

Hey there,

 

A deafult can only ever occur once. it would be a good idea to record a screenshot or a copy of your credit file showing the default - so if they try and add it again you can challenge it!

[FSpencer]

That's great, so they only thing they can do is put a CCJ (which I can hopefully fend off). I've already go a copy of my statutory report from all agencies, and am also signed up to creditexpert - which is a ripoff by the way.

 

I wonder what my file will say next summer, when the default is gone, but there's still this mysterious outstanding amount to Santander.

[sequenci]

You got it, once defaulted the only thing that can continue to prolong your credit file is if they bring proceedings via the courts (or if you go down the IVA/Bankruptcy route)

 

Best wishes,

 

Seq.

[FSpencer]

Thanks all, and I guess they could in theory go straight to CCJ and give me no opportunity to prevent this? Is this likely?

 

I'm trying to keep santander at bay while I throw all I have at a higher priority debt, and don't want them rubbishing my credit file in the mean time.

[Deb T]

I always thought that a default could be issued as many times as they like and it's only once they follow it up via a letter of termination that no further default notices can be issued?

 

It's only one default on a credit file granted but if it's not on a credit file and is simply a creditor issuing them then it's up to them ...

 

That was what I thought anyway.

[sequenci]

I always thought that a default could be issued as many times as they like and it's only once they follow it up via a letter of termination that no further default notices can be issued?

 

If the default was remedied within the 14 days (i.e. brought up-to-date) then another default notice could be sent at a later stage should the debtor fall behind again. An account would only default once the 14 days have expired. As far as I was always trained (and as far as my interpretation of the CCA is concerned) is that a default can only ever happen once. Once an account has been breached, you cannot unbreach it! It's a bit like a rope being cut in half!

[harrassed senior]

There certainly seems to be a topic open to discussion here.

 

I have read on other sites that purport that the person answering is a trained Solicitor, that although as has been said a defaulted default? can only occur once in the lifetime of a debt, there is nothing to stop them being reported ad infinitum for as long as they remain unpaid, on your credit report, ie, putting them back on as soon as they fall off - I really cannot believe that that is the case otherwise there would really be little point to the credit file agencies really would there?

[FSpencer]

Many thanks for all the replies, it looks like there are some different thoughts on this. It might be better to break it down into two issues: the default notice letter, and the default notice on the credit file.

 

The default notice letter: In my experience I have received multiple ones of these from the same creditor, all advising me of x number of days to remedy the situation.

 

The Default on credit file: As mentioned before, I have one of these from 5 years ago, and it'll drop off my file next summer. Since the debt is still not settled, and regardless of how many default notices LETTERS they may send me, can they put a new default on my file? I would hope their only next option is to go for the CCJ.

 

I'm going to contact experian myself with this question (got to get something from my £8 a month creditexpert subscription).

 

I really need to get a definite answer on this, as it will be a big influence on my whole strategy here.

[Deb T]

FSpencer..Sequenci is correct, one default per debt on your credit file, once it's been entered onto your file it can not (should not) be adjusted and will naturally drop off your file 6 years to the day....no they cannot change the default date...and what I assume you mean is that with each spurious default notice they're sending you ..you're thinking they can update your credit file from that date? Nope, it starts from the date it was first entered.

 

Just as an aside here, I had a default registered by Egg, it dropped off my file as it should have done 6 years to the day, that I thought was the end of it...but not with egg because several months later my credit file

was updated by egg again and they had adjusted both the amount of money owing and the default date, in essence extending it by 6 months...altogether against all the guidelines/regulations/data protection act..

I contacted the CRA's who wrote to egg and egg removed the newly added defaults. I've since progressed my complaints against their stupidity with the OFT, ICO and TS ...

 

As for my previous comments re default notices (as opposed to default entries on a credit file) and sequenci's clarification afterwards...I think Sequenci's opinion is correct.

Edited October 8, 2010 by Deb T

[dx100uk]

i think the many users get confused between

 

markers

 

and

 

default notices

 

and

 

default sum letters

 

 

markers [late payment/over limit/no pay etc etc]

can be and are reported every month to the CRA's and 'mark' your file.

 

a default notice is a one off thing until the 'reason' on the DN is rectified.

 

if its not, they cannot issue another one.

 

if you make an 'arrangement to pay' then break it, i 'think' a further DN can be sent as the old one would have benn 'rectified' by making the 'arrangement'

 

dx

[harrassed senior]

I think the 'lesson' to be learned here is to make sure you have a hard copy of your Credit Files every few months or so.