Default Entry

[user2001]

Indeed.

 

I hope someone can use the new European 'right to be forgotten' law to challenge this at some point.

 

Also - if I were in this situation again (or talking to someone who was) I do everything I could to force the hand of all my creditors to issue a default before then coming to an agreement (DMP etc) with them if it was looking unlikely that the situation could be cleared up within 6 years.

[Jamesx81x]

That change is only going to make peoples situation and gives unscrupulous finance companies the ability to just add info when they want, why on earth have the ICO allowed that?

 

Basically you could clear your file become debt free then 10 years down the road find a default placed because a company has decided to add it?

 

6 months should become some sort of statute, more than enough time for a company to process the data.

 

Anyway thanks for the replies.

[BRIGADIER2JCS]

That change is only going to make peoples situation and gives unscrupulous finance companies the ability to just add info when they want, why on earth have the ICO allowed that?

 

Basically you could clear your file become debt free then 10 years down the road find a default placed because a company has decided to add it?

 

6 months should become some sort of statute, more than enough time for a company to process the data.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Anyway thanks for the replies.

 

 

Data can't " just add data" in that way, the default process still has to followed as before, the " flexibility " is connected to the use of "arrangement to pay (AP) markers on CRA files, it no longer being "unfair" to use them instead of placing a default.

[johnmayhew]

Surely this would only be on new defaults and not old ones before this year?

[BRIGADIER2JCS]

Surely this would only be on new defaults and not old ones before this year?

 

 

It's not clear if this can be applied retrospectively to defaults that have been placed "late" and are challenged from now on.

[user2001]

Here is the decision on my complaint to the ICO made in Dec 2013 and issued in Jan 2014 for an account where the DMP started in 2006:

 

In this case we have decided that it is likely that MBNA has complied with the requirements of the DPA.

 

This is because under Principle 4 of the DPA information held should be is factually accurate and, where necessary, up to date. From the Information provided it would appear that the information held would be factually accurate.

 

As explained by MBNA they have never registered a default to the account. Generally by the time the account is 3 months in arrears, the lender may be taking further action such as reporting the account as defaulted. Missed payments may continue to rise and be reported up to a maximum of 6. On some products this may continue to show as 6 until the lender takes action and reports the account as being in default.

 

In this case the account was 4 payments in arrears with no default registered and then an arrangement to pay was agreed between you and MBNA via a debt management plan. There is no requirement in this instance where by the lender must register a default to the account and fair processing will have been given when the arrangement was put in place. I note that you feel if a default was registered that that this would have been cleared from your credit file earlier than having the payment plan in place, however there was no requirement for the lender to register this and if they had it would have a higher detriment to your credit score.

 

I note further down the line the payments that the status of the account has changed. Arrears should generally only increase by one month at a time e.g. status code 1 to 2, 2 to 3 etc. There can be exceptions to this such as fraud, bankruptcy, county court judgments (CCJs), returned cheques or direct debits.

 

In the event that repayments are made and the arrears reduce, the change in arrears status should be recorded in the next monthly update.

 

In contrast to the reporting of increasing arrears, reducing arrears may legitimately “jump” status codes if significant payments are made and/or capitalisation occurs.

 

It is important that you are made aware when such arrangements are made and maintained, that it will show on your credit file and that whilst arrears may accrue and increase, a default will not be recorded unless the arrangement is broken. If the arrangement is broken then they may choose to register a default as long you were at least 3 months in arrears on the original agreement.

 

In light of all of the above, we do not recommend that MBNA needs to take any action in relation to this matter.

 

This matter is now closed. Thank you for bringing it to our attention.

[BRIGADIER2JCS]

The is certainly the common response on "unfair reporting of defaults and using AP markers instead" nothing to be done as far as I can see.

[user2001]

Yep.

 

Fortunately for me, I was able to get a couple of accounts which did issue a default (but delayed) to have their dates set back so this is the only thing adverse info on my CRAs and it will be gone in 18 months.

 

Mortgage broker seems to think it won't be a particular issue give my income and LTV so at least I am not stuck in an undersized house on NRAM SVR

[Jamesx81x]

On the same subject if a creditor has a date of default as August 2011 but does not decide to report it to the CRA's until February 2014 how is this fair and is it allowed?

 

30 months after their date of default.

 

This is without them reporting adverse data previously too.

 

Thanks

[BRIGADIER2JCS]

On the same subject if a creditor has a date of default as August 2011 but does not decide to report it to the CRA's until February 2014 how is this fair and is it allowed?

 

30 months after their date of default.

 

This is without them reporting adverse data previously too.

 

Thanks

Your question is unclear, do you mean that an account is actually defaulted Aug 11,i.e, the debtor has failed to meet the terms of a default notice and the debtor has been informed that the account was defaulted on xx/08/11 but the creditor reports the default with the 2011 date in 2014 or do you mean a default date of 02/14 is reported.

 

 

Many times people confuse the issue date of a default notice with the actual default date, they are not synonymous.

[Jamesx81x]

The credit agency shows a date of default as 08/2011 but this entry was not placed on file until 02/14

 

So obviously to have a default date of 08/2011 the creditor would have had to issue relevant paperwork and notification of upcoming default etc but has not reported it to the CRA's for 2 and half years after.

 

Just wondering why it would take his long for a creditor do to and where the question of time limits originates from.

 

Thanks

[Jamesx81x]

This is how it reads:

 

 

Date of default 14/08/2011

 

Default balance xxxx

 

Status history

 

2014 Jan Feb Mar Apr May Jun Jul Aug Sept Oct Nov Dec

D D D D

[BRIGADIER2JCS]

Have you checked all 3 main CRAs?

Not all "creditors" report to all 3, also if you use one of the agencies such as "check my file" or Noddle which use 2nd hand data any may not be up to date.

 

 

This defaulted account will be removed from CRAs on the 6th anniversary of the default date shown paid or not so you are not disadvantaged in any way.

 

 

In fact the creditor does not have to report to any agencies if it sees fit not to.

 

Thanks

[BRIGADIER2JCS]

This is how it reads:

 

 

Date of default 14/08/2011

 

Default balance xxxx

 

Status history

 

2014 Jan Feb Mar Apr May Jun Jul Aug Sept Oct Nov Dec

D D D D

 

 

 

 

 

 

 

If the default date is correct then this is not a problem.

 

 

Which CRA is this?

[Jamesx81x]

Its Equifax

 

I just wondered if they had to register it within a certain time but if they can register it any time within the 6 years then thats answered my question

 

Thanks

[BRIGADIER2JCS]

Its Equifax

 

I just wondered if they had to register it within a certain time but if they can register it any time within the 6 years then thats answered my question

 

Thanks

 

 

The is no "obligation" for a creditor to report anything, many do not report until there is a "problem" on an account ( utility companies for example)

 

 

Anytime in the six year period as long as the default date is not changed.

[Jamesx81x]

If a company issues a default notice with an incorrect figure then the default notice is defective.

 

Where does that leave a consumer in relation to their credit file if this incorrect figure has been reported to the CRA's.

 

Are there any grounds for removal and what action can be taken against the creditor for reporting this incorrect info?

 

Thanks

[dx100uk]

there is no direct relationship between

a default notice and any default markers on your file.

 

dx

[Jamesx81x]

Well what about the incorrect figure that is been reported to the CRA's?

[dx100uk]

who says its incorrect

 

and by what data is this being judged as so?

 

dx

[Jamesx81x]

The creditor does after admitting charges were applied that they had no right to do so.

 

They have agreed to remove them and adjust the balance but where does that leave a consumer for the months they have been reporting incorrect data?

[BRIGADIER2JCS]

The creditor does after admitting charges were applied that they had no right to do so.

 

They have agreed to remove them and adjust the balance but where does that leave a consumer for the months they have been reporting incorrect data?

 

 

If this is a default amount that is wrong then it unlikely to cause any problems a default is a default £1 or £100.

[Jamesx81x]

Yes a default is a default but what your saying in that sense then the Principle of the DPA that states a consumer has the right to have fair and accurate info reported not worth the paper its written on then?

 

It kind of does matter to someone that is vetted for their job as they then have to explain why they owe that amount of money.

 

What harms a default for £1k if you only owe £300 for example?

 

It comes down to creditors been allowed to do what they want with no comeback on them when they &%$ up!

[BRIGADIER2JCS]

Yes a default is a default but what your saying in that sense then the Principle of the DPA that states a consumer has the right to have fair and accurate info reported not worth the paper its written on then?

Errors do occur and it seems this one has or will be corrected.

There is I think no redress to be had here.