Effect of Default Notices on credit files

[cazza1968]

I had an account with a well known high street bank. I also had an overdraft facility and a Gold Mastercard that had to be paid in full at the end of each month. In time I could not cope so the bank lumped it all together and converted it all to loan (about 8 years ago now if not more).

 

I was paying loads back and not coping and i got further and further behind. Don't know when exactly i was defaulted but it would have been some time ago. It was sent to debt management within the banks system and I negotiated a smaller monthly payment - still £200 pcm though. Paid it for the most part with the odd month missing. Then had to stop sometime ago again (not deliberately).

 

How do defaults work?

 

Does the bank register the default and the 6 years starts ticking from then?

 

Or if you reach an alternative agreement with the debt section does the default clock start ticking again?

 

and if they sell it on to a DCA can they separately default you?

 

Any help appreciated.

[Guest jamesroberts]

I am led to understand that the original lender is the one who puts the default on file with the c.r.a.

 

You then have the default for 6 years from when you originally were served with the default notice, if you then make payments to a dca I assume that becomes a further credit agreement as such.

 

I am only speaking from my own experience but I am sure a legal bod will give you more concise information before long as they are pretty clued up here!

 

[rory32]

A DCA can seperately default you. A default will only be removed if the creditor decides to remove it (obviously after 6 years it will not show up on your credit file).

 

However, with regards to the legalities of a default there are 3 things to consider.

(1) Does the creditor have a copy of the original credit agreement

(2) Has the debtor been issued with a signed true and certified copy of the original default notice as complies with CCA1974 s88 and and the Consumer Credit (Enforcement, Default and Termination Notices) Regulations 1993.

(3) In the case of passing debts to third parties (DCA's) supplying the debtor with a deed of assignment.

 

If the above criteria has not been fulfilled I would suggest you should push for the removal of the default under section 10 of The Data Protection Act 1998.

[cazza1968]

A DCA can seperately default you. A default will only be removed if the creditor decides to remove it (obviously after 6 years it will not show up on your credit file).

 

However, with regards to the legalities of a default there are 3 things to consider.

(1) Does the creditor have a copy of the original credit agreement

(2) Has the debtor been issued with a signed true and certified copy of the original default notice as complies with CCA1974 s88 and and the Consumer Credit (Enforcement, Default and Termination Notices) Regulations 1993.

(3) In the case of passing debts to third parties (DCA's) supplying the debtor with a deed of assignment.

 

If the above criteria has not been fulfilled I would suggest you should push for the removal of the default under section 10 of The Data Protection Act 1998.

 

You're good! Just been having a conversation with Smashedbobo about this and wanted to check the facts. I cannot remember ever receiving a default notice but then since i have had kids I don't remember much at all. Nappy brain.