Default added within 7 days of Assignment

[the worm that turned]

I would be most grateful of some clarification from you great folks on CAG please.

 

Background

Had an original CC with MSDW long time back.

This then followed the Goldfish to Barclaycard route.

 

CCA made to Barclaycard who failed to satisfy my request.

 

Upon the 6th alleged missed payment they assigned it to a DCA (will not name at this stage).

 

DCA made usual threats.

 

More interestingly,

the DCA applied a Default to my credit reference file only 6 days after the date of assignment.

 

Questions

From my understanding a default notice must be provided prior to recording a default with any CRAs.

 

This notice must provide the info prescribed in S88(1) of CCA74

and as such a way to remedy any alleged breach and

must afford the debtor 14 days from service to carry out remedy before a default can be recorded with CRAs.

Is this your understanding too?

 

As Barclaycard never added a default

(and if they did then the DCA would have needed to have recorded the same date

with the CRAs in my credit reference file)

and the DCA did not follow the correct procedure,

 

where do I stand now with regards to

a) the Default entry,

 

b) the alleged debt (that I deny) and

 

c) my chances of suing the DCA for stress

and actual loss suffered from affecting my credit rating by applying Default?

 

Does the alleged debt become unenforceable now?

 

Many thanks in advance and any further questions do not hesitate to ask!

 

Cheers

 

Wormy

[dx100uk]

if you've a series of markers 1,2,3 thru to 6.

 

then the cra system automatically marks the account defaulted after the 6th missed payment.

 

so p'haps neither the dca nor the OC did it.

nor were required to send a DN?

 

is this the case?

 

dx

[the worm that turned]

if you've a series of markers 1,2,3 thru to 6.

 

then the cra system automatically marks the account defaulted after the 6th missed payment.

 

so p'haps neither the dca nor the OC did it.

nor were required to send a DN?

 

is this the case?

 

dx

 

I can't say I've ever come across a CRA taking the liberty of applying a default to an account before. Where have you heard of that before?

 

As the original credit agreement would have been under the CCA74 then I would assume that any default would need to follow the correct procedure.

 

Also, in this example, once assigned to the DCA the previous alleged missed payments would not be relevant as they were in relation to the previous owner (Barclaycard). As such, if there was an automatic system then surely any default would need to be applied to the Barclaycard account not the DCA account.

 

Do you have examples of this ever happening in the past (either to you or others) or is it just a suggestion?

 

Ta

[dx100uk]

as far as i'm aware, it's always been the case that once the markers reach 6 [6 missed payments]

the file is defined as in default & is automatically marked as such in the summary line.

 

differing CRA's use differing markers [some use 8 some use DF, some use 6]

 

as for the debt buyer..

 

all that happens is either the OC's name is replaced with theirs

 

or the OC's entry is marked as settled with a £0 balance. and closed

 

then a new entry is made by the debt buyer with the same details

of payments etc. and the OD balance returns.

 

the old OC's account ideally should be removed.

 

a debt buyer simply inherits whats there.

 

dx

[the worm that turned]

as far as i'm aware, it's always been the case that once the markers reach 6 [6 missed payments]

the file is defined as in default & is automatically marked as such in the summary line.

 

differing CRA's use differing markers [some use 8 some use DF, some use 6]

 

as for the debt buyer..

 

all that happens is either the OC's name is replaced with theirs

 

or the OC's entry is marked as settled with a £0 balance. and closed

 

then a new entry is made by the debt buyer with the same details

of payments etc. and the OD balance returns.

 

the old OC's account ideally should be removed.

 

a debt buyer simply inherits whats there.

 

dx

 

My point is that ONLY the legal owner of the account (i.e. Barclaycard or the DCA in this example) is legally entitled to place an account in default (and if they choose to, report to CRAs) and if they do attempt to default the account SHALL follow the requirements laid down in the Consumer Credit Act 1974 (chiefly those found in section 88).

 

I am not aware of any legal entitlement for a CRA to report a Default on an account regardless of how many payments have been missed.

 

With regards to the "debt buyer simply inherit[ing] whats there", this too would not make sense in my example as the Barclaycard account was marked as settled WITHOUT a default entry (just 6 alleged missed payments) and the buyer (DCA) or CRA(s) (if what you say is true) entered a default AFTER it was marked settled by Barclaycard. I.e. the action was taken by the buyer or CRA(s).