Defaults - background, removal methods, challenges and taking a claim to Court

[car2403]

This is from the ICO;

 

Notices of intention to file a default

32 Lenders should tell their customers about filing information with a credit reference agency as part of the account opening procedure, in line with the requirements of the ‘fair processing code’4. This explanation will not normally refer explicitly to defaults and will often be distant from the events which cause them. Therefore we strongly recommend that a notice of the intention to file a default should be served. Many lenders now subscribe to trade association codes of practice which require this. This practice helps the transparency of the credit reference process and may even prompt payment, so avoiding the need to file a default at all.

 

33 Notices to comply with Sections 13.7 of the Banking Code5 and 7.5 of the Lending Code6 should provide adequate warning. A notice of intention to file a default can be sent with a formal default notice served under Section 87 of the Consumer Credit Act 1974. Where lenders are not required to issue these notices, they can send an intention to file a default through a final demand, letter or relevant account statement, which should make clear not only the intention to file but also the date of the intended default. The date should allow the customer enough time to respond properly. Lenders who have to provide a notice of intention to file a default under a relevant code of practice should be aware that not complying with the code may be taken into account in any assessment of the fairness of their processing.

 

34 When a default occurs in line with the criteria in this guidance, and the lender has given the customer 28 days notice of the intention to file a default, then subject to paragraph 37, the lender may supply this information to a credit reference agency despite no advance warning when the account was opened.

 

35 It may not be necessary to serve a notice on all occasions. We accept there are cases when there should be no doubt over a default, for example, cases:

involving fraud;

where the lender has been notified under the terms of a bankruptcy or IVA;

where there has been successful court action or repossession; or

where a customer has made no attempt to resolve their arrears.

36 We do not believe that on its own a notice of intention to file a default amounts to harassing the debtor. We accept that lenders need to take care in the wording and use of notices to avoid the possibility of harassment.

If a borrower fully meets the terms set out in a notice of intention to file a default, it follows that the lender should not file the default.

[basa48]

Hmmm.... I was defaulted early June (for remedy by late June) and terminated (aaaarrgghhh!!) end of June.

 

Yet no default filed with any CRAs that I can see??

[HighFly]

Really excellent thread.

 

Car, I'd appreciate you having a browse over here http://www.consumeractiongroup.co.uk/forum/dca-legal-successes/211818-lowell-hampton-statutory-demand-1.html and let me know if I'm going the right way.

 

Many thanks

 

HF

[themadcap]

Would all this still be applicable to an account that was closed 4 years ago? am i able to ask to stop processing my data on the basis we have no contract anymore?

[RHOOD]

subbing

[the_shadow]

This is from the ICO;

 

How do,

 

having just had this happen to me I found this thread whilst searching only your response didnt really answer my questions..

 

I understand the point as in

35 It may not be necessary to serve a notice on all occasions. We accept there are cases when there should be no doubt over a default, for example, cases:

involving fraud;

where the lender has been notified under the terms of a bankruptcy or IVA;

where there has been successful court action or repossession; or

where a customer has made no attempt to resolve their arrears.

 

But when read in conjunction with ......

32 Lenders should tell their customers about filing information with a credit reference agency as part of the account opening procedure, in line with the requirements of the ‘fair processing code’4. This explanation will not normally refer explicitly to defaults and will often be distant from the events which cause them. Therefore we strongly recommend that a notice of the intention to file a default should be served. Many lenders now subscribe to trade association codes of practice which require this. This practice helps the transparency of the credit reference process and may even prompt payment, so avoiding the need to file a default at all.

 

33 Notices to comply with Sections 13.7 of the Banking Code5 and 7.5 of the Lending Code6 should provide adequate warning. A notice of intention to file a default can be sent with a formal default notice served under Section 87 of the Consumer Credit Act 1974. Where lenders are not required to issue these notices, they can send an intention to file a default through a final demand, letter or relevant account statement, which should make clear not only the intention to file but also the date of the intended default. The date should allow the customer enough time to respond properly. Lenders who have to provide a notice of intention to file a default under a relevant code of practice should be aware that not complying with the code may be taken into account in any assessment of the fairness of their processing.

 

I become confused... do I need to look to the banking code to see if its a requirement for a default to be send out, would that apply on the current accounts rather than credit cards which is the case for me?

 

S.

[Muffintop]

i have received many threats that a default may result if no contact made, i have not to my knowledge received an official default notice and my credit file isnt showing yet. bcard or mbna, however i have received lots of threats that this will result, i have not made contact with them as if i do it sets the 6 year clock again as contact has been made? or is that if a payment is made... i thought all you had to do was make contact with them for the debt to be acknowledged again.... anyway i have lots of late payment markers on my file and lots of charges for defaulted payments despite me thinking they couldnt do this when acc is in dispute, its now taken me over the credit card limit allocated due to their charges charges, i am willing to challenge these but dont know how seems very complicated.

[themadcap]

Just wondering, I have a CCJ with easymoney lloyds which im in the process of having removed (they agree with me 2 and refunded all court costs) but i also have a default seperatley for this whic h was updated march 2007 and says balance £3470 the balance is now £61 and is finished this month, can i get this default removed as they are clearly showing a bad credit record and that for the past 2 years i havent made payment as this is obviously untrue and have therefore clearly missused my inforation and misrepressented me unfavourably.

Also i have a default from 2005 from vodafone ex singlepoint, as i only ever had a contract agreement with singlepoint i have never agreed that vodafone could use my info when they bought them out

any help greatly appreciated

[themadcap]

anyone help here?

[themadcap]

Doesnt anyone turn up here anymore???????

[car2403]

I think you need to start your own thread, in the right forum, as your questions will go unanswered here, now.

 

There's a new user guide to CAG in my signature showing you how, if you're unsure.

[gaz2006]

Just wondering, I have a CCJ with easymoney lloyds which im in the process of having removed (they agree with me 2 and refunded all court costs) but i also have a default seperatley for this whic h was updated march 2007 and says balance £3470 the balance is now £61 and is finished this month, can i get this default removed as they are clearly showing a bad credit record and that for the past 2 years i havent made payment as this is obviously untrue and have therefore clearly missused my inforation and misrepressented me unfavourably.

Also i have a default from 2005 from vodafone ex singlepoint, as i only ever had a contract agreement with singlepoint i have never agreed that vodafone could use my info when they bought them out

any help greatly appreciated

 

Im afraid some people may be confused by your text as I am . Depends on circumstances of default just because they remove the ccj doesnt mean the default was wrong too you must tell us about the circumstances of default and how much of total debt defaulted was made up of charges or was it ? If one company ie vodaphone buys another it has bought the "clients too " they are still covered by the agreement you signed otherwsie youd be saying if I buy a currrys washer if they sell to comet you wont pay as comet have no agreement !!!! Regards Gaz

[themadcap]

forgetting the vodafone, the point i am making via the loyds default is that they have never updated the default since march 2007 thus suggesting i still owe it £3470 despite actually owing £61 therefore any lender checking my credit record would see this default and consider that i had not bothered to repay it surely part of the criteria for processing your info is to keep it up to date, would it not be slanderous and defamatory to suggest that i was this bad a debtor? as it is obviously not a true reflection on my credit history

thanks

[the_shadow]

forgetting the vodafone, the point i am making via the loyds default is that they have never updated the default since march 2007 thus suggesting i still owe it £3470 despite actually owing £61 therefore any lender checking my credit record would see this default and consider that i had not bothered to repay it surely part of the criteria for processing your info is to keep it up to date, would it not be slanderous and defamatory to suggest that i was this bad a debtor? as it is obviously not a true reflection on my credit history

thanks

 

Make a complaint to the ICO, if you have almost paid off this default then they have a duty under the data protection guidelines to ensure that any information held on you is accurate.

 

S.

[hacksaw]

Hi Car,

 

What would a claimant put in the box "Brief details of claim" on the N1 Claim Form?

 

What about the question "Does, or will, your claim include any issues under the Human Rights Act 1998?" Would that be a yes or a no?

 

Thanks.

[car2403]

What would a claimant put in the box "Brief details of claim" on the N1 Claim Form?

 

Claim for the removal of an inaccuately recorded Default?

 

What about the question "Does, or will, your claim include any issues under the Human Rights Act 1998?" Would that be a yes or a no?

 

There are no HRA issues

[Suzannah234]

hi

 

How many payments adrift before default is registered on your credit file?

 

 

Thanks

 

s

[the_shadow]

hi

 

How many payments adrift before default is registered on your credit file?

 

 

Thanks

 

s

 

Varies by lender, MBNA is usually 8 missed payments, Citi in my experience 6 missed payments.

 

S.

[Suzannah234]

hi shadow

 

Thanx for that. I am two payments behind on my Vanquis credit card, and have been worrying myself stupid. I have had the account now for five years and have never had any problems up until now. I know the a.p.r. is high, but at the time I needed it to try to try and improve my poor credit rating. And it certainly has. Anyway I have just managed to set up a payment arrangement with them, and they have said they will review my account in six months. Obviously if my circumstances improve, then 'normal service' will be resumed as soon as possible:D

 

suzie S

[hacksaw]

Claim for the removal of an inaccuately recorded Default?

 

 

 

There are no HRA issues

 

Thanks car.

 

Would you mind looking at my thread for a claim against a DCA to remove a default (and compensation)?

 

http://www.consumeractiongroup.co.uk/forum/data-protection-default-issues/229290-particulars-claim-default-removal.html

 

Thanks.

[basa48]

Hi .. sorry to hijack this thread, but I have a court hearing in two days regarding my thread here -> http://www.consumeractiongroup.co.uk/forum/legal-issues/222131-opposing-set-aside.html

 

I need a bit of advice re courtroom protocol and stuff.

[themadcap]

Just checked equifax and they also state £3470 balance, yet the judgement says settled!!!!!

Would i have a case for slander or defamation as its not been updated since 2006 yet ive paid £125 every month since then and now finished it and it must be reflecting badly on any credit application i make

thanks all

[the_shadow]

Just checked equifax and they also state £3470 balance, yet the judgement says settled!!!!!

Would i have a case for slander or defamation as its not been updated since 2006 yet ive paid £125 every month since then and now finished it and it must be reflecting badly on any credit application i make

thanks all

 

Under the DPA a data controller has a duty to ensure the information held on you is accurate, I would in the first instance write to the firm (data controller) and demand they update the records correctly.

 

You could include Equifax as they also have a duty to ensure the information held on you is accurately reported, they will claim its the data controllers responsibility but thats a cop out, under law they are equally liable I believe as they too are a data controller.

 

S.

[themadcap]

Could i not make Lloyds remove it completely as it has been inacurately processing my data for over 3 years (last update jan 06) ?

[the_shadow]

Could i not make Lloyds remove it completely as it has been inacurately processing my data for over 3 years (last update jan 06) ?

 

You could certainly threaten it

 

S.