Can some please explain Defaults

[NotPPIsavy]

Hi there – I have a question re Defaults. I have a Default put on my Capital One card as I have missed some payments in 2011. Until then I have been paying regularly and at times twice a month to keep the payments up to-date. Then why have I got this Default when I have been making regular payments? Is this legal? As per below I have missed payments in May/June and then August. Since then regular payments of £10.00 every month was paid.

Payments made -Feb/April/July/Sep/Oct/Nov/Dec.

Thanks

Edited November 6, 2013 by NotPPIsavy

[BRIGADIER2JCS]

Hello just a quick reply: Yes this reporting is correct, if there are late or missed payments even if these are 'made up' a later date the creditor will have in the Ts & Cs a section showing why and when a they consider a default has occurred.

 

Reduced payments levels agreed or not are technically a default on the original contractually required payment levels.

[NotPPIsavy]

Oh Ok thank you. I am waiting for the Statements and all other documents to arrive from Capital One. As soon as I get these I will know if I have overpaid the account. If the account is paid off then will this still remain ad D or will it be shown as Satisfied?

 

Thanks for your help.

[BRIGADIER2JCS]

Satisfied.

[NotPPIsavy]

Thanks.

[NotPPIsavy]

Hi there - having received all SAR docs from Capital One - the Default notice is unlawful as I never received the DN in the first place, and secondly one of the statements did not include my payment of £50.oo that along with the charges incurred led to going over the limit. So taken all these into account do you think I can get them to remove this as it is not lawfully enforced. thanks

sorry - i already asked this in my previous post - but found this one which is the correct post.

[BRIGADIER2JCS]

There is nothing to stop Cap 1 issuing a new DN, and the alleged £50-00 missing payment from a statement is not a reason for removing the default.

 

A default notice is totally different to the actual default on the account.

[NotPPIsavy]

Thanks - but the Default note should not be on my CR file because I have not exceeded 8 or more. Only 2 months and the balance is also wrong. So in actual fact the account is in dispute when they put the default note. Does this not make it unlawful to put a DN when there is a dispute on the account?

[BRIGADIER2JCS]

Exceeded what? 8 or more missed / late payments?

 

Creditors can and will default on as few a 3 missed payments there is no number fixed in legislation or guidance.

[NotPPIsavy]

Thanks - My understanding is that after 8 late payments the creditors can put your account into default. However, in my case, if the missing £50 had been entered correctly the account would have been up to-date. Also now I know the account was up to-date and I am in credit so they had not put the correct information.

[ims21]

Thanks - My understanding is that after 8 late payments the creditors can put your account into default. However, in my case, if the missing £50 had been entered correctly the account would have been up to-date. Also now I know the account was up to-date and I am in credit so they had not put the correct information.

 

You might like to have a read of this which explains about defaults....

 

http://www.ico.org.uk/~/media/documents/library/data_protection/detailed_specialist_guides/default_tgn_version_v3%20%20doc.ashx

 

Have you advised the lender of any dispute at all either recently or at the time? If not then they don't know of any dispute.

 

Have you started off the process of finding out what happened to that £50 payment which has not appeared on the account?

 

To stand a chance of getting the default removed you would need to show that the account was operated correctly at the time. That would mean getting this £50 payment traced and applied to the account properly. If that has the impact of putting the account into a properly managed state and then you successfully reclaim any resultant penalty charges then you stand a chance of getting the default removed as part of the deal.

 

Having said that, you have indicated that you had missed some payments so that could make it more difficult.

[NotPPIsavy]

Thanks ims21 - when I did receive all my statements after a SAR request - I went through all the documents and when I realised the discrepancies I wrote to them and waiting to hear from them. So my PPI offer is also on hold at the moment as I need to sort out the discrepancies first and then will accept the offer subject to they send me the cheque to me. Trying to get all sorted step by step. I thought if I get the account sorted and then ask them to get the default sorted and then will ask them to send the PPI refund.

[NotPPIsavy]

sorry - yes I missed the payments two months but I always paid 3 times more to make it up and to bring it up to-date.

[BRIGADIER2JCS]

sorry - yes I missed the payments two months but I always paid 3 times more to make it up and to bring it up to-date.

 

That I'm afraid makes no difference at all the cumulative effect of late or missed payments will usually result in a default the figure of

8 is irrelevant the creditor will have their own system for deciding when a default is placed.

 

If the amount of £50 was received after the date a payment was due it results in an LPM when 'extra payments' are received to remedy previous late or missed payments they are not allocated to the months in which the LP or MPs occurred.

[NotPPIsavy]

Thanks - my problem was I was paying by Direct Debit and debit card, and never had a look at my statements until now. Now I am learning to take control of everything, and noted the ones that I have over paid etc. Since PPI and going on this site I have learnt so much. Thanks to you all. Still learning and its a long way from getting things right. I will work through the cards and PPI and get back to you soon. I am very busy with work etc and cannot find the time sort out my finance. Getting there slowly.