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Difference between late payment notice and default notice


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Hi all,

 

Apologies if this question has already come up,

I searched for a while and couldn't find anyone posting the same thing.

 

Over the past few months I have been trying to get old default notices removed from two accounts I have

- one with HSBC and

one with Natwest.

 

I have been going back and forth by post, asking them to demonstrate they gave me the appropriate warnings of the defaults being added

(as per section 78 of the Consumer Credit Act) and I have requested information under the data protection act.

 

HSBC has subsequently come back to me with an interesting defence,

which is that these aren't actually 'defaults' on my account,

but rather late payment notices,

and as a result they had no requirement to warn me in writing that they would be added to my credit file.

On closer examination of my file, it turns out that these are indeed late payment notices and not defaults.

 

A couple of questions then:

 

1: Are late payment notices not subject to the same written warnings that defaults are?

2: Are there any strategies members have used to get late payment notices removed?

 

Thanks for your time,

 

OS

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They probably mean notice of default sums.

Any advice i give is my own and is based solely on personal experience. If in any doubt about a situation , please contact a certified legal representative or debt counsellor..

 

 

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They CAN be put there, but you can contest them. The whole point of a DN is to give the debtor time and opportunity to rectify the arrears before the default is placed.

Any advice i give is my own and is based solely on personal experience. If in any doubt about a situation , please contact a certified legal representative or debt counsellor..

 

 

If my advice helps you, click the star icon at the bottom of my post and feel free to say thanks

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I have to disagree. A DN is a procedural element . A default is often placed after several months of late payment markers. Please look at the ICO guidance on defaults.

 

The two things are totally different. You can get a DN with no default registered and vice versa.

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I have to disagree. A DN is a procedural element . A default is often placed after several months of late payment markers. Please look at the ICO guidance on defaults.

 

The two things are totally different. You can get a DN with no default registered and vice versa.

 

Yes this is correct, a notification of default on a credit file is merely a record of payment. A default notice issued under section 87 of the consumer credit act is a notification of intended action in court or a demand for full repayment of sums due under the contract.

DO NOT PAY UPFRONT FEES TO COLD CALLERS PROMISING TO WRITE OFF YOUR DEBTS

DO NOT PAY UPFRONT FEES FOR COSTLY TELEPHONE CONSULTATIONS WITH SO CALLED "EXPERTS" THEY INVARIABLY ARE NOTHING OF THE SORT

BEWARE OF QUICK FIX DEBT SOLUTIONS, IF IT LOOKS LIKE IT IS TO GOOD TO BE TRUE IT INVARIABLY IS

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IMHO, the whole issue of Default (on credit files) Default Notices and Reporting to credit reference agencies needs to be overhauled.

 

From what I understand, irrespective of whether you have defaulted or not, the creditor will record the payment history to the credit reference agencies. This in order for other creditors to see how you behave with credit.

 

However when a Default Notice is issued - Creditors use the reporting to the CRAs as a threat.. For instance HSBC say on their DNs.

 

"Furthermore, as a Defaulting debtor details of your default "including your name and address" will be reported to the Credit Reference Agencies". As they have already provided the Agencies with your name, address and account number at the start of the financial relationship - this makes no sense whatsoever.

 

They also say that if you remedy the breach prior to the date they give (statutory requirement of 14 days) - then it will be as if the breach never occured. However, they have already reported to the CRAs your payment history so again, it makes no difference whether you remedy the breach or not.

 

This type of action is pretty much standard across all creditors, it is just htat I have an HSBC Default notice to hand and could quote accurately from it.

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Yes it does I agree the system is widely abused.

 

ICO guidelines say that the creditor should give 28 days notice before recording a default, however they are just guidelines. as we know the actual warning notice is usually incorporated within the section 87 notice and should be implemented 14 days after the expiry period of the DN. However this is by no means always the case , sometimes defaults are recorded when no action is being considered, this si quite within the law.

 

The remedy mentioned within section 89 of the act which says that it should be as if no breach occurred refers to section 87(statute), where it say that the creditor should be entitled by "breach", it does not mean that the agreement(contract) should be regarded as not being breached.

Even if the section 87 is remedied there is no requirement to alter the record of payment, in fact it would be a breach of the DPA to do so, as it would create an inaccurate record of the account history.

Edited by Dodgeball
spel

DO NOT PAY UPFRONT FEES TO COLD CALLERS PROMISING TO WRITE OFF YOUR DEBTS

DO NOT PAY UPFRONT FEES FOR COSTLY TELEPHONE CONSULTATIONS WITH SO CALLED "EXPERTS" THEY INVARIABLY ARE NOTHING OF THE SORT

BEWARE OF QUICK FIX DEBT SOLUTIONS, IF IT LOOKS LIKE IT IS TO GOOD TO BE TRUE IT INVARIABLY IS

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ok so you have late payment markers then

 

were you late?

 

if you can PROVe that there was no balance to pay

because of their unlawful PENALTY fees .

 

you MIGHT have a chance

 

however, late payment markers do not normally show on say a simple mortgage application search.

 

unless it went all the way 1,2, 3 etc to 6.

 

dx

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