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Challenging Default Notice


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Hi all,

 

Long story short

 

I had a Gold account with a monthly fee.

 

Back in 2008 I opened an account with another bank and forgot about it after moving house.

 

6 months on I get a letter saying they intend to file a default notice "unless within 28 days of this letter satisfactory payment or arrangements for payment are made with the bank."

 

The default was of £500 consisting entirely of bank charges.

 

I spoke to Natwest who suggested taking a loan for the amount to prevent the default being applied.

I did this and paid it off without a hitch.

 

I recently checked my credit file which is how I found out,

the default was applied in May despite my first payment being well within the 28 days of the letter and no payments were missed.

 

I called Natwest today and they were unable to help as they didn't hold the details

because the account was closed and they couldn't see who closed it.

 

They suggested I go in to my local branch.

 

I'm not convinced my local branch can help so thought I'd run it past here first and see what you thought?

 

Cheers.

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Hi

 

The Information Commissioners Office Technical Guidance say that if

''a default sum is made up entirely of charges without which no default would occur then no default should be placed.

 

It is also a breach of OFT Guidance to encourage a debtor to increase borrowing to pay a debt.

 

So make a formal complaint to the bank, if they do not rectify the problem then a complaint to the ombudsman is the way to go.

Any Letters I Draft are N0T approved by CAG and no personal liability is accepted.

Please Consider making a donation to keep this site running!

Nemo Mortalium Omnibus Horis Sapit: Animo et Fide:

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can i just check..........

 

you say they made you take out a loan to repay bank charges?

 

dx

please don't hit Quote...just type we know what we said earlier..

DCA's view debtors as suckers, marks and mugs

NO DCA has ANY legal powers whatsoever on ANY debt no matter what it's Type

and they

are NOT and can NEVER  be BAILIFFS. even if a debt has been to court..

If everyone stopped blindly paying DCA's Tomorrow, their industry would collapse overnight... 

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urm...

 

thats a bit naughty of them

to make a customer take out a loan

with interest

to pay of PENALTY charges.

 

unfair relationship etc would be the kindest word here i would use.

 

i wonder if you cold pull the BCOBS string although thats from 2009.

 

dx

please don't hit Quote...just type we know what we said earlier..

DCA's view debtors as suckers, marks and mugs

NO DCA has ANY legal powers whatsoever on ANY debt no matter what it's Type

and they

are NOT and can NEVER  be BAILIFFS. even if a debt has been to court..

If everyone stopped blindly paying DCA's Tomorrow, their industry would collapse overnight... 

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urm...

 

thats a bit naughty of them

to make a customer take out a loan

with interest

to pay of PENALTY charges.

 

unfair relationship etc would be the kindest word here i would use.

 

i wonder if you cold pull the BCOBS string although thats from 2009.

 

dx

 

Yeah, I'll get the SAR sorted in case I've missed something and go from there. :)

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That is disgusting refinancing to pay charges it must be reprted and followed up through to FOS and a compalint to the OFT.

Any Letters I Draft are N0T approved by CAG and no personal liability is accepted.

Please Consider making a donation to keep this site running!

Nemo Mortalium Omnibus Horis Sapit: Animo et Fide:

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Your letter MUST be headed FORMAL COMPLAINT for the bank to take you seriously.

Have we helped you ...?         Please Donate button to the Consumer Action Group

Uploading documents to CAG ** Instructions **

Looking for a draft letter? Use the CAG Library

Dealing with Customer Service Departments? - read the CAG Guide first

1: Making a PPI claim ? - Q & A's and spreadsheets for single premium policy - HERE

2: Take back control of your finances - Debt Diaries

3: Feel Bullied by Creditors or Debt Collectors? Read Here

4: Staying Calm About Debt  Read Here

5: Forum rules - These have been updated - Please Read

BCOBS

1: How can BCOBS protect you from your Banks unfair treatment

2: Does your Bank play fair - You can force your Bank to play Fair with you

3: Banking Conduct of Business Regulations - The Hidden Rules

4: BCOBS and Unfair Treatment - Common Examples of Banks Behaving Badly

5: Fair Treatment for Credit Card Holders and Borrowers - COBS

Advice & opinions given by citizenb are personal, are not endorsed by Consumer Action Group or Bank Action Group, and are offered informally, without prejudice & without liability. Your decisions and actions are your own, and should you be in any doubt, you are advised to seek the opinion of a qualified professional.

PLEASE DO NOT ASK ME TO GIVE ADVICE BY PM - IF YOU PROVIDE A LINK TO YOUR THREAD THEN I WILL BE HAPPY TO OFFER ADVICE THERE:D

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