CCA Defaults

[reallymadwoman]

Reasons for a DCA to ignore a CCA

 

1. If you can't find the agreement, why not just keep the poor sucker dangling?

2. If you have the agreement, why send it out just for the clever dicks on CAG forum to pull it to pieces and tell the poor sucker it's unenforceable or void?

3. If the poor sucker sets Trading Standards on to you, they won't do anything.

4. Ditto if they complain to anyone else.

5. If someone does tell you you have to send it out, go back to 1. above.

6. They wouldn't have the nerve to ask a court to enforce it.

 

Reasons for a DCA to comply with a CCA request

 

1. Er ... Um .... Ask that work experience kid in the post ignoring room if he can think of one!

2. The poor sucker is a CAG member and yes, they will take you to court!

[Having_A_Knightmare]

Let it all out reallymadwoman lol:D

[reallymadwoman]

I just thought there has to be a reason, other than stupidity obviously, that none of the DCAs seem able to comply with such a straightforward bit of legislation (or at least the requests for info bit is straightforwards).

 

Besides I've been drafting my own nastygrams all afternoon, and I got bored.

[Having_A_Knightmare]

I know what you mean, there a knightmare.

[scotland2007]

Talking about defaults, apparently a company called "Fairmile Partnership LLP" has recently been adding them to credit files.

 

Only a few problems, of course....

 

1) The defaults are added to what Fairmile believes to be the debtor's latest address, not where they were incurred. That is, defaults dated "2002" have been added in "2007" as if they were accounts at the debtor's latest address. Posting a default on the supposed most "current" address of a debtor is highly questionable, as is the fact that the default got registered some 5 years after an account supposedly defaulted.

 

2) The Fairmile incarnation that registered the defaults was not a registered company until 2005. In addition, it turns out there are at least 7 (seven) different Fairmile companies, with very strange data:

 

1 - incorporated 07/01/2005, paperwork appears to be filed on time

2 - incorporated 07/01/2005, return due at companies house 04/02/2007 (overdue)

3 - incorporatd 07/01/2005, on 14/11/2005 changed its name to RIDGEWORTH FAIRMILE RECOVERIES LLP

4 - incorporated 27/10/2005, return due 24/11/2006 (overdue)

5 - incorporated 27/10/2005, filed account as DORMANT company (no activity) on 31/05/2006

6 - incorporated 30/05/2006, too new, no accounts filed, on 15/05/2007 chaged its name to FAIRMILE RECOVERIES LLP

7 - incorporated 14/06/2006, too new, no accounts filed

8 - incorporated 14/06/2006, too new, no accounts filed

 

Companies house data freely available also indicates:

Nature of Business (SIC(03)):None Supplied

The company did not directly disclose to companies house that it was in the business of debt recovery. Apart from other considerations, the fact that two companies clearly related have failed to file paperwork with companies house could surely be a good enough reason for the Office of Fair Trading to investigate. If the "DORMANT" company has ever sent a letter, then presumably that would be enough reason to shut all Fairmiles down ("DORMANT" companies are those that did not trade or did any business during their accounting year).

 

3) The debt for which the default was registered is clearly BARRED. Not simply statute barred, but completely DEAD under the PRESCRIPTION AND LIMITATION ACT (SCOTLAND). It does not exist, and Fairmile has acknowledged that by putting a default date of over five years ago on the credit file. Unfortunately, information can technically be retained in credit reference agencies for six years from the date of the default, even if a debt in Scotland expires in five

 

The problem is, even if Fairmile is taken to court, there will not be much compensation for their victims (who pay off debts legally dead) and would take too long. And they are not the only company pursuing barred debts.

[Monty2007]

1) The defaults are added to what Fairmile believes to be the debtor's latest address, not where they were incurred. That is, defaults dated "2002" have been added in "2007" as if they were accounts at the debtor's latest address. Posting a default on the supposed most "current" address of a debtor is highly questionable, as is the fact that the default got registered some 5 years after an account supposedly defaulted.

 

Dear Scotland 2007

 

You make an interesting point here, I am in the position of:

 

(i) OC issued default notice in June 2005, I had missed payments due to redundancy, this was sent to my old address (since moved twice)

(ii) I was unable to remedy the default conditions

(iii) The debt was placed with a DCA, I paid token payments then £700 per month for the last 18 months.

(iv) OC confirmed that the CCA was terminated as I had breached their T&C's and asserted they had correctly served a default and hence they would not correspond with me anymore. Must go through DCA.

(v) In June 2007, CCA'd OC and DCA. No CCA produced - Default so I stopped paying.

(vi) Just had confirmation from Experian that NO defaults are registered on my credit reference files, only missed payment markers.

(vii) Debt now passed to solicitors, have suggested reduced settlement as a gesture of goodwill?

 

If the OC has NOT registered the default with the CRA where does this leave me in respect of what you state? I assume that they cannot serve the default notice at my new address?

 

What is the position with respect to cancellation of the CCA? I had always thought it was only when you were in breach = default notice. Hence if it was not served then the contract cannot be canceled?

 

Any views/comments?

[scotland2007]

 

(vi) Just had confirmation from Experian that NO defaults are registered on my credit reference files, only missed payment markers.

(vii) Debt now passed to solicitors, have suggested reduced settlement as a gesture of goodwill?

 

If the OC has NOT registered the default with the CRA where does this leave me in respect of what you state? I assume that they cannot serve the default notice at my new address?

 

What is the position with respect to cancellation of the CCA? I had always thought it was only when you were in breach = default notice. Hence if it was not served then the contract cannot be canceled?

 

Any views/comments?

 

It is important to note that a Default Notice can only be served on a LIVE credit agreement. If a credit agreement has been cancelled, there can be no default notice sent to your current address or any other address.

 

Note that a "Default" recorded by a credit reference agency is not the same as a "Default Notice" for a credit agreement.

 

A "Default Notice" for a credit agreement means the lender can terminate it (ie your credit card has no more available credit, your overdraft is revoked, you cannot borrow any more). A cancellation notice would then be sent to advise the agreement has been cancelled after you miss the deadline if the lender chooses to do so. If you do not receive a cancellation notice and bring your account up to date at a later date, then your agreement may still be live but your credit limit may be inaccessible (ie you may be paying off a card you cannot use or a loan knowing you cannot get another loan from the same lender).

 

Some lenders will serve a default notice if you miss just one payment; others will serve a default notice if you are two, three or six months in arrears. Some others may keep sending you a default notice every time you miss a payment (it has been known to happen to people who get paid 3-4 days after their payment due date).

 

A "Default" in a credit file may be reported immediately or months later. For example, no matter how far behind you were in your payments when you were served with the default notice for your agreement, if you continue to not pay or pay less than the required minimum payment then the lender may choose to report your account as 3, 4, 5, 6 months behind in payments before changing the status to a "D". That "D" status is the "Default" on your credit file that is difficult to change. Other lenders may choose not to report any of their accounts at all unless they have gone on the "D" status (i.e. nothing on your credit file for months then a "D" appears or report a "D" immediately after you miss the deadline).

 

Once the status goes to a "D" it will generally not change other than a) to remove the account altogether at the request of the lender, b) to mark the account as satisfied if it has been paid in full, c) to drop off automatically (whether paid or not) on the first Saturday after six years since the date a "D" was entered.

 

It may be that your continuing payments have prevented the account from going to the "D" status and as far as the credit reference agency is concerned you simply have an account with a bad payment history and as far as the lender is concerned they terminated your facilities (ie cannot borrow any more or get any credit from them again) but the amounts under the original agreement are still due and you are paying it.

 

Paying on an account that has a "D" status means that no matter what you pay, it has no effect in your file, no more balances are recorded once a "D" is in place - if you owe £10000 and pay £9900 of it, you still have a "D" and £10000 in your file. If you pay all £10000 you will see an "S" and £10000 (default satisfied). Furthermore, if despite making payments the status of your account gets worse (e.g. you need to pay £1000 and you pay £50 and the credit agency reports it going from 4 to 5 months behind) that does not help either as sooner or later the account will reach "D" Default status. There is no provision at present to challenge the balance on a Default. You could add a NOTICE to your file to explain how much you paid but it will not help much.

 

Check your file carefully and see what is reported for that account and how many months behind the payments are showing and how close you are to "D" status (anything over 6 would be critical).

[Monty2007]

Many thanks Scotland, this makes perfect sense. I appreciate your explanation.

[chrisb333]

What about a case like mine where this default disappeared from credit file after 6 years only to re-appear under new name of Fairmile Partnership with a new date of 4 years after the original?

[PGH7447]

chrisb - it might be an idea to start a new thread this one is nearly 2 years old, also explain what the default relates to

[Weeeza]

Hello

 

I have recently checked my credit file and a default for £710.00 has been registered against me by 'Fairmile Partnership LLP' in July 2007 (shortly after my last check on my credit status). I tried to locate some info on this company such as telephone number and or address as I have never had any correspondance or telephone communucation from this firm.

 

I have come to note that this company has gone into receivership on a couple of occassions in 1995 and 2006 most notably. I then did some further digging on them and found that AIC (Allied International Credit) are now registered at the same address and the debt noted above is currently with AIC. I think they have just set up in another name - which I know is common. How can a debt collection agency post information against me when they are not legally trading?

 

I found out from AIC that the default they are alledging related to a credit card debt I had with Nat West Cards but the sum was well over £6,000.00. I had settled that debt in Aug 2003 with another debt collection agency called Interim Justicia and strangely enough upon checking the breakdown the fee paid to Interim Justicia was £780.00.

 

I think what has happened here is that Fairmile are trying to recover the fee they would have earned if they had been the ones to recover the original £6000.00 debt on behalf of NatWest Cards. Sadly for them I now want to know if I can take AIC (formerly Fairmile) to court as they have damaged my credit rating which over the last 6 years I have worked so hard to repair.

 

This month would have seen my credit file completely clear other than this erroneous posting by Fairmile.

 

Any advice would be gratefully received please!

 

Thanks very much

 

Weeeza

[hacksaw]

Hi Weeeza

 

You might want to start your own thread so that you can get the help you need, rather than being buried in this one where it is hard to find.

 

Thanks.

hacksaw