Question on the default process, can someone confirm this please?

[Heropanda]

Can i clarify the default process please, according to my reading on the subject its as follows:-

 

(1) A letter is sent to you a minimum of one month after falling into arrears notifying you that you are going to be defaulted

 

(2) The actual default notice is sent to you outlining the arrears and giving you 14 days to remedy the breach. The advice from the information commissioner is that this shouldn't be sent within 90 days of falling into arrears.

 

(3) If you don't sort it out within those 14 days then a notice of termination will be sent and a default will be registered with the CRA's

 

So in essence, you can't be defaulted without having 14 days to remedy the situation, is that right?

[dx100uk]

.............

[Heropanda]

Thanks for attaching that, as a follow up question i'm after clarification as above, reading through the document it suggests a default an be placed on a file without notification 'where a customer has made no attempt to resolve their arrears.'

 

So in the scenario where a payday loan provider doesn't accept a plan and no payments have been made could allow them to register a default without notifying me or allowing me the opportunity to remedy the breach, is that correct?

 

If that is the case then would it be best to make a payment of c 20% of the total arrears to give proof that attempts are being made to clear the arrears? Obviously it would be best to make a payment of 100% of the arrears but obviously if money is spread fairly thin then you have to pick and choose...

 

I'm in repayment plans with other providers so i think i'm right in that i should expect a default notice that i can respond to within 14 days before the lasting damage is done?

[dx100uk]

the problem might be there are no rules regarding markers as opposed to a DN.

 

markers are just as bad and can be applied after the vey first missed payment.

 

so if you are or not in a plan makes little odds the damage is done.

 

dx

[Heropanda]

How do you mean 'markers' are these late payment flags or arrangement to pay flags?

[dx100uk]

either...

 

though the dreaded AP marker never goes away

and is worse than a ccj in any lenders eyes.

 

late payment markers can normally be challenged as being unfair if you get then for years on end

 

there's nowt you can really do about years of AP markers , you can complain, but we've found very little

luck in getting them removed.

 

dx

 

 

dx

[Heropanda]

I haven't had an AP marker on the other accounts yet and i'm about 2/3rds of the way through paying them off (should be paid off either end of March or April) so i'm not too concerned about those (not that there's anything i can do about them)

 

Of the lenders who i am working through an arrangement with, three have recorded late payments flags, four have logged no information at all with CRA's in my most recent report.

 

Of the lenders who i don't have an arrangement in place with, both have not recorded any entry so far on my credit report.

 

I'm so close to being able to pay everyone off and i'm trying my best to limit the damage to the credit file and i don't know the best course of action

[dx100uk]

out of all of those i'd plumb with late payment markers being the least damaging.

 

AP even in the history will kill you to a creditor.

 

its a very sad situation that pdl's can do it to you.

 

though theres nowt to suggest you cant ask for thwm to be removed if you settle

 

you might be surprised

 

dx

[Heropanda]

Yep its not great is it but i do know its my own fault for getting in this mess.

 

Is there anything that stops a PDL from reporting the status after its been settled, so lets say for one of those companies who haven't recorded anything, i make all the payments, settle the balance by end of March, could they suddenly mark the account down as defaulted or just AP/Late payments retrospectively?

 

And whats the power of the Information Commissioner, is it absolute in this matter or just best practice?

[dx100uk]

they and the FOS certainly have clout.

 

but i doubt a PDL will put anything on your CRA file if there is not already an account created to mess up when you settle.

 

dx