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Unusual situation with BC, unsure of a way forward


Sun&Moon46
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I recently got a Lloyds Default backdated by 3 years as i had been on an arrangement to pay for longer than that before they finally Defaulted me and got Barclaycard to backdate by 6 months as the Default should be applied within 6 months of the cause of action and they took 12 months to Default me.

 

So if they do turn round and Default you now you can argue that it should be backdated to within 6 months after you first started making token payments as that and a DCA being involved are clear indicators of a defaulted account.

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I have spoken with the ICO previously regarding APs and although there is no specific regulation on APs it is felt that it MAY be unfair to continue to report them after 6 years.

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This is the ICO statement i used.

 

This was from another poster on here who made a complaint that they were Defaulted years after an arrangement to pay was set up.

 

“When someone defaults on an account and is only able to make token

payments, the default should be placed on that persons credit file

there and then, regardless of whether they are making the token

payments or not. It is not acceptable some years down the line to

place a default then, as using the fairness test, the person who

didn't pay at all is obviously in a better position than the person

who did.”

 

Not sure if it has any legal standing but mine was backdated within a week of using this. (Although i did go straight to the top and complain to the CEO's office!)

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The OFT Technical Guidance on Defaults is worth a read.

Any ICO statement has impact.

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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#

 

Morning Slick,

 

All defaults are removed from CRA Files on the 6thannivesary of the default date paid or not, this so not to disadvantage a debtor who pays towards a debt in comparison to a debtor who makes no effort to pay.

This is not the date a DN is issued but the actual date the account was defaulted, there have been a few threads here lately where a DN has been issued but no default has been placed and an account has an arrangement to pay which remains on file, whilst if a default had been placed it would have been removed automatically Barclay Card often do this.

 

Which is what has happened to me then... I have what looks like a default notice issued by Mercers but no CRA has it reported, so guess what that means is the account will continue to show 6's, forever and a day :(

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This is the ICO statement i used.

 

This was from another poster on here who made a complaint that they were Defaulted years after an arrangement to pay was set up.

 

“When someone defaults on an account and is only able to make token

payments, the default should be placed on that persons credit file

there and then, regardless of whether they are making the token

payments or not. It is not acceptable some years down the line to

place a default then, as using the fairness test, the person who

didn't pay at all is obviously in a better position than the person

who did.”

 

Not sure if it has any legal standing but mine was backdated within a week of using this. (Although i did go straight to the top and complain to the CEO's office!)

 

Thanks for this, definitely seems to apply to me, if I have been paying token payments for over 3 years haha... I still have no idea why they haven't sold me on, unless it's due to the one time they passed it on, I objected on the grounds of the defective CCA... Who knows???

 

I wonder whether I should also write to someone and ask why it hasn't been defaulted as per the notice I have...

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The OFT Technical Guidance on Defaults is worth a read.

Any ICO statement has impact.

 

Thanks Brig, I have saved this previously and want to print it out, as I'm rubbish at reading docs on computer, but I have no ink so need to do it 'elsewhere' ;)

 

Really appreciate everyone taking the time to respond, thank you :thumb:

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Let's be clear CRAs do NOT report the issue of Default Notices, the creditor issues the DN which gives the debtor time to put the account in order, if this does not happen then the creditor can place a default on an account, simply the issue of a DN does not mean the account has actually been defaulted.

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Yeah I understand, seems as though they issued it, but then didn't ever act on it, so I totally understand why it isn't reported through the CRA's (even if I wish they had reported it to them), what I don't understand is why after 3.5years of paying £1 BC have done nothing with me, no comms at all, surely you'd expect a "let's review your circs" or similar, a statement, something... Isn't it unusual for any creditor to let someone pay tokens for so long without anything? Weird...

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I was told by BC last year that their policy is to only apply a Default after 7 straight months of non payment to an account, although this policy is clearly wrong and can be challenged.

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Thanks Shutmeup, I was told this too, when I was trying to get them to agree to reduce interest etc, they said after 3 months went to recovery and after 6 defaulted and passed on.... so here we almost 4 years after I stopped making the contractual payments they still hold my account and no registered default, why?

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When you stopped paying the proper amount each month did you go straight onto making token payments?

 

I was told it had to be no payment at all and no reasonable contact with them for 7 months before they issued the default.

 

Although this doesn't really make a difference overall as at the time i was told this i wasn't aware of the ICO statement above i just quoted the ICO default guidelines at them and was happy they backdated 6 months. Had i known of that statement i would have argued for it to be backdated a lot further.

 

There are a lot more knowledgeable people on here than me to advise you of what your next move should be but it seems unfair that if you paid your debt off tomorrow it would still show for 6 years yet if it was defaulted to the correct time it would be clear in half that.

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Yeah I understand, seems as though they issued it, but then didn't ever act on it, so I totally understand why it isn't reported through the CRA's (even if I wish they had reported it to them), what I don't understand is why after 3.5years of paying £1 BC have done nothing with me, no comms at all, surely you'd expect a "let's review your circs" or similar, a statement, something... Isn't it unusual for any creditor to let someone pay tokens for so long without anything? Weird...

 

OK I think I can challenge this for you on grounds of disadvantage if you would like to get a back dated default placed, please let me know?

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When you stopped paying the proper amount each month did you go straight onto making token payments?

 

I was told it had to be no payment at all and no reasonable contact with them for 7 months before they issued the default.

 

Although this doesn't really make a difference overall as at the time i was told this i wasn't aware of the ICO statement above i just quoted the ICO default guidelines at them and was happy they backdated 6 months. Had i known of that statement i would have argued for it to be backdated a lot further.

 

There are a lot more knowledgeable people on here than me to advise you of what your next move should be but it seems unfair that if you paid your debt off tomorrow it would still show for 6 years yet if it was defaulted to the correct time it would be clear in half that.

 

I made a few lower payments, then went to the £1, I always paid something each month, as believed this was better for me than paying nothing.

 

As you say, the bit that bugs me is if and when I manage to pay it off, I have a further 6 years of it showing on my credit file, whereas if the default notice that was issued in 2008 had been recorded as it should have been, then when I had paid it off, I would be 'free' of the history at the end of 2014, whereas now it is staying with me, possibly for years and years :(

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OK I think I can challenge this for you on grounds of disadvantage if you would like to get a back dated default placed, please let me know?

 

All advice/support is more than welcome Brigadier, even if I still 'fear' waking them up, I really need to get this addressed, if I am ever going to be able to apply for a new mortgage to finally rid me of an ex who hasn't lived here for nearly 4 years... but that's a whole other crazy story lol

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Apologies for the delays in replies, my laptop is having a fit, as is my wi-fi (I think it is sulking as I am about to switch) and I haven't been able to get on here.

 

I really do appreciate everyones help and wisdom, given I have none where this is concerned... so thank you everyone :)

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Being issued a default notice is totally different to an actual Default being recorded on your credit file.

 

I was issued 4 notices that i never settled before finally being Defaulted. To quote a BC 'high-level complaints manager!' i spoke to last year, 'a default notice is only classed as an advisory letter and the company issuing it does not have to act on it if you fail to bring your account up to date'.

 

I believe your true Default date that should be recorded would be 6 months after you started making reduced payments as technically that is when your account went into Default.

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Being issued a default notice is totally different to an actual Default being recorded on your credit file.

 

I was issued 4 notices that i never settled before finally being Defaulted. To quote a BC 'high-level complaints manager!' i spoke to last year, 'a default notice is only classed as an advisory letter and the company issuing it does not have to act on it if you fail to bring your account up to date'.

 

I believe your true Default date that should be recorded would be 6 months after you started making reduced payments as technically that is when your account went into Default.

 

Thanks Shutmeup, I started paying a £1 each month continually in Nov 2008, I had made a couple of £1 payments in earlier months but since Nov 08 I have only paid £1 a month to them... which kinda marries up to the formal demands received in June 2009 although the only default notice I have is dated Sept 08 so who knows...

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Being issued a default notice is totally different to an actual Default being recorded on your credit file.

 

I was issued 4 notices that i never settled before finally being Defaulted. To quote a BC 'high-level complaints manager!' i spoke to last year, 'a default notice is only classed as an advisory letter and the company issuing it does not have to act on it if you fail to bring your account up to date'.

 

I believe your true Default date that should be recorded would be 6 months after you started making reduced payments as technically that is when your account went into Default.

A default can be placed as soon as any variation of payment level take place, the 6 month period relates to ''the timely'' placing of defaults on CRA file i.e. within 6 months of the cause of action.

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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Have just checked and I made the last contractual minimum payment required in May 08, paid some random amounts for a few months after that, then £1 from November onwards so think it's fair to say a default should definitely have been recorded...

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Have just checked and I made the last contractual minimum payment required in May 08, paid some random amounts for a few months after that, then £1 from November onwards so think it's fair to say a default should definitely have been recorded...

 

If my maths are correct you should have been defaulted by Jan 09 at the latest, nearly 4 1/2 years ago!

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The creditor decides when and if a cause of action results in a default being made on an account, the ICO Technical Guidance on Defaults says defaults SHOULD be placed within 6 months of the cause of action!!

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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If my maths are correct you should have been defaulted by Jan 09 at the latest, nearly 4 1/2 years ago!

 

That's how I would see it, but it probably isn't that way... lol

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The creditor decides when and if a cause of action results in a default being made on an account, the ICO Technical Guidance on Defaults says defaults SHOULD be placed within 6 months of the cause of action!!

 

'Should' not 'must' I guess, however they are putting me at a distinct disadvantage by not having recorded it, not that that will matter I'm sure...

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Yes I agree, but it essential that you are aware of how the system works, who is to say the creditor felt that the account was redeemable because offers of payment were made and payments were actually made as well.

There is a possibility that this can be challenged but it is just a possibility.

I will read all through the thread over the weekend to see what may be done.

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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