Payday Express Default

[hendo29]

hi guys

 

just looking for a little clarification relating to defaults on payday loans.

 

it is in relation to an old payday express account where there is still a balance. the account was open between sept 2012 to dec 2012.

 

in May this year a Default appeared on my credit file for the account the default was dated for dec 2012. no notice of default was ever sent.

 

i wrote to payday express to challenge this and in their final response they have stated

 

"It should be noted that Payday Express is not required to send you a formal notice before recording the loan as being in default with the UK credit reference agencies"

 

then Quoting the Information Commissioners guidelines

 

"a Default Notice will be issued for the following reasons

 

- to terminate the agreement

- to demand early repayment

- to recover possession of goods

- to treat any right as terminated, restricted or deferred

-to enforce any security"

 

"you will notice there is no mention of a Default Notice being required for the purpose of reporting to the credit reference agencies"

 

surely this can't be right can it?

 

under the CCA a default notice is sent to give you the opportunity to remedy the breach by a certain date. without the Default Notice i have not been given a reasonable opportunity to set things right.

 

i am raising my complaint with the ombudsman now but would just like clarification if this is right?

 

thanks

[citizenB]

The purpose of a Default notice is to give you the opportunity to remedy the breach (non payment) within a certain time (14 days). If you do not remedy the breach, only then are they allowed to report to credit agencies, terminate the account etc, etc.. so they are wrong.

 

They should have issued a Default notice under section s87(1) prior to marking a Default on your records.

[hendo29]

Thanks citizen that's what I thought. I wasn't certain on the section of the CCA though.

 

Il escalate my complaint to ombudsman and hopefully get it removed.

 

The final response states not only that they didn't send a default notice, also, that they are exempt from the law in that they don't need to send one and that they are unable to produce one.

 

What about the fact they registered the default 2 years after the activity had taken place, anything wrong with that. Does the information commissioner guidelines not give a deadline of 6 months for creditors to register for a default? Or am I mistaken there

 

Thanks again

[citizenB]

Thanks citizen that's what I thought. I wasn't certain on the section of the CCA though.

 

Il escalate my complaint to ombudsman and hopefully get it removed.

 

The final response states not only that they didn't send a default notice, also, that they are exempt from the law in that they don't need to send one and that they are unable to produce one.

 

What about the fact they registered the default 2 years after the activity had taken place, anything wrong with that. Does the information commissioner guidelines not give a deadline of 6 months for creditors to register for a default? Or am I mistaken there

 

Thanks again

 

 

Then they should be asked to point to the section of the law/regulations that exempts them !!

[citizenB]

There are indeed guidelines laid down by the Information Commissioner about timely reporting of Defaults. I think it is 6 months, but you might need to check with them.

[hendo29]

Thanks again CitizenB.

 

I will let you know how I get on.

 

Hopefully get it taken of my CRF

[citizenB]

[renegadeimp]

Can i ask. Did they tell you this over the phone or in writing. If in writing, can you post a copy of the letter up please.