2 defaults for the same account!!! is this legal?

[scotchbull82]

I have a next account that was defaulted back in 2006 i have challenged this as i never recieved such default and i am on 3rd letter requesting removal if they cannot substanciate this.(next head office). since i made contact with next the debt has been passed from london scottish bank to debt mangers ltd and both companies have registered defaults now for same acc.yet neither company or next will help on the phone so is there a legal template or advice. As having 1 default is bad but 2 for same thing is frustrating.

 

please help

[BankFodder]

Well, please excuse my rather harsh attitude, but - if you are still at the stage where you believe that by merely calling them and asking nicely, that they will help - then you have a long way to go and you will get very depressed about it.

 

You are correct that this is an unjust practice yet double defaulting - and even triple defaulting for the same debt is pretty common practice.

 

It leads to defaults on the same debt which can go on for years beyond the standard 6 year default term. When your credit file show two defaults, then of course it looks very much worse than it is.

 

I have not heard of anyone who has successfully challenged this - although I have to say that I haven't actually heard of anyone who has tried.

If you want to do something about it then you will be breaking new ground.

 

I would suggest that you begin by writing a very polite neutral letter to the Information Commissioner. Not a letter of complaint, at this stage. merely a non-threatening letter asking them what are the rules on this kind of duplicate default and what might be their attitude if they were to receive a complaint about it from you.

 

You should also write to the CRA and ask them what is the policy about duplicate defaults which potentially can extend beyond the 6 year standard.

 

The Information Commissioner will take a long time to reply. Best to deal with them by email and follow up every 10 days.

 

The CRA might reply quite quickly. They have surprised me sometimes with the speed of their turn around.

 

You could also ask the Banking Codes Standards Board (is that right) as to their position on this.

 

Don't expect any blinding answers on this. These suggested letters are merely initial exploratory questions.

 

The problem, as I see it, is that there is no rule expressly permitting or prohibiting double defaults. Therefore you have to base a complaint upon standards or fair or reasonable behaviour.

 

At the end of the day I expect that this is the kind of question which will have to be brought before a court.

 

However, the FOS has recently been given jurisdiction of the CTA's.

 

You could also complain the CRA and tell them that you want to bring the matter up before the Ombudsman.

 

With any of this, don't go in mob-handed. You'll see a lot of swaggering threads in this sub-forum where people declare war and everyone else gathers around and cheers them on. You'll wear yourself out.

The CRA and the Information Commissioner will also try to wear you out. keep it low key and thoughtful if you want to make any way.

Edited January 10, 2009 by BankFodder