Default Removal

[Koptrader]

Hi Guys

Need a little bit of advice, I am looking at getting a mortgage with my girlfriend in the next few months BUT have a couple of things which may trip me up on my file. Looking for some guidance as to what I should do...

Basically, had a student overdraft with Natwest from back in 2005. Also had one with RBS which is same company so not quite sure why they allowed me another but I was young and skint so never asked questions. Anyway, got into some difficulty with finances and never paid student loan regularly into the overdraft and the account was defaulted in Nov 2008 for amount of around £1,200. The inevitable chase ensued whereby every debt collector in the country had a go and getting the money but eventually, they gave up. I haven't heard a peep from this account for around 2 years now, maybe even longer.

Aswell as this, I have 2 closed accounts that were defaulted but settled. One drops off in Aug 2012 so not really interested in that one and other one, from Halifax, will stay on file until 2014 (defaulted Sept 2008 when was having difficulties). The Halifax one is also interesting as I was defaulted for a sum of around £800 but they repaid credit card charges of £1,400 a year or two later that cleared the default and sent me the balance. They have refused to remove the default saying that it was added correctly at the time (I tried to appeal to their "good" nature and make them see that prob wouldn't have defaulted only for the overwhelming charges they added but they had none of it).

So now i'm looking for some guidance as what to do. If I could guarantee removal of the Natwest default, I would happily payback the full amount of the debt BUT by opening negotiations, I leave myself open to them chasing it again and having the default stay on file anyway. Also, what would you do about the Halifax default? Even though settled, still sat on my file somewhere and prob will cause me some issues. Any hope of getting that off?

Help and advice greatly appreciated

Thanks
KT

[SXGuy]

Re: Default Removal

someone else with default knowledge may help but i personally dont see them being removed. Dont quote me though someone else may say otherwise.

As for a mortgage, making sure both of you have the correct amount of income declared, for the amount you wish to borrow on top of the deposit, will help you with being accepted or not.

Your best advise here, is to seek an independant mortgage adviser, who will tell you exactly what you would or would not be able to get, i can give you details of the guy i used if you wish, he was very good and hes costs where included in the mortgage so no need to worry there.

He can tell you based on facts whether you would be likely to be accepted or not, and if yes, he can offer you the best deal as he has access to every mortgage out there on the market.

If he advised to wait until the defaults drop off, then i would do that, as any refusals for mortgage acceptance would not be a nice thing to hold on your credit report.

[CleverClogs (RIP)]

Re: Default Removal

I am looking at getting a mortgage with my girlfriend in the next few months

Does she have a Consumer Credit License?

[Koptrader]

Re: Default Removal

Does she have a Consumer Credit License?

Unfortunately not haha just a license to consume my wages

[CleverClogs (RIP)]

Re: Default Removal

As well as this, I have 2 closed accounts that were defaulted but settled. One drops off in Aug 2012 so not really interested in that one and other one, from Halifax, will stay on file until 2014 (defaulted Sept 2008 when was having difficulties). The Halifax one is also interesting as I was defaulted for a sum of around £800 but they repaid credit card charges of £1,400 a year or two later that cleared the default and sent me the balance. They have refused to remove the default saying that it was added correctly at the time (I tried to appeal to their "good" nature and make them see that prob wouldn't have defaulted only for the overwhelming charges they added but they had none of it).

Refer those buggers to the FOS.

Even if you don't win, it'll cost you nowt and it'll cost them £500.

[Never-In-Doubt]

Re: Default Removal

Hiya

See my post here ---> Am I going mad????? - allaboutFORUMS

Basically this explains the default process and confirms that a lender can add accurate data so regardless that the Default was paid, if it was not done within the remedy period and you were one payment late then they can (and will) add the default.

The FOS will not intervene on this as it's out of their jurisdiction based on the simple test - were you at least one payment late and not in dispute?

Sorry but the defaults will stay - McGuffick v RBS confirms this stance so long as the data is accurate ie a true reflection of the manner you ran the account.

[Never-In-Doubt]

Re: Default Removal

Refer those buggers to the FOS.

On what basis? No formal complain is in place thus no complaint to the FOS can be allowed. Similarly, as the bank will argue that he did default (and the fact a DN notice was served confirms as such), the FOS will reject any complaint based on the fact the bank can report accurate data.

Bummer I know, but not really much that can happen now. It's a case of sitting out the time required for cessation.

[Koptrader]

Re: Default Removal

Hi NID,

I haven't CCA'd for the credit agreements, nor SAR'd for the defaults for these credit cards and given when they were taken out, do you think there is a good chance that they will be incorrectly drawn up. Do you think it is worth pursuing this route?

Thanks
KT

[CleverClogs (RIP)]

Re: Default Removal

The FOS will not intervene on this as it's out of their jurisdiction based on the simple test - were you at least one payment late and not in dispute?

Is there any harm in asking them to act?

Sorry but the defaults will stay - McGuffick v RBS confirms this stance so long as the data is accurate ie a true reflection of the manner you ran the account.

That's just it - the recorded data reflects the way that account was operated when excessive charges were being applied to it. Had those charges not been applied, one could argue that the default might never have happened.

[CleverClogs (RIP)]

Re: Default Removal

I haven't CCA'd for the credit agreements, nor SAR'd for the defaults for these credit cards and given when they were taken out, do you think there is a good chance that they will be incorrectly drawn up. Do you think it is worth pursuing this route?

There is every possibility that they'll have buggered it up.

[Koptrader]

Re: Default Removal

That's just it - the recorded data reflects the way that account was operated when excessive charges were being applied to it. Had those charges not been applied, one could argue that the default might never have happened.[/QUOTE]

I'm thinking the same thing, I have wrote to Halifax and requested that they remove the default, they refused so I haven't pushed further, yet! But I suppose, it classes as complaint for the purpose of FOS

Thanks
KT

[CleverClogs (RIP)]

Re: Default Removal

I'm thinking the same thing, I have wrote to Halifax and requested that they remove the default, they refused so I haven't pushed further, yet! But I suppose, it classes as complaint for the purpose of FOS

Don't be amazed if the matter is rejected out of hand.

[Never-In-Doubt]

Re: Default Removal

Hi NID,

I haven't CCA'd for the credit agreements, nor SAR'd for the defaults for these credit cards and given when they were taken out, do you think there is a good chance that they will be incorrectly drawn up. Do you think it is worth pursuing this route?

Thanks
KT

Well obviously being you have the defaults.... why not CCA them, it can do NO more harm but you do have to realise the mortgage will not go through with defaults outstanding - whether paid or not, it's the same difference. Sorry to be the bearer of doom but that is the way it works.... sadly

[Never-In-Doubt]

Re: Default Removal

Is there any harm in asking them to act?

Nope but he may need to utilise the FOS at a later stage so why ruin it with a half feebled attempt? Not worth the hassle IMO....

That's just it - the recorded data reflects the way that account was operated when excessive charges were being applied to it. Had those charges not been applied, one could argue that the default might never have happened.

Now, that changes things - can we clarify were these charges or PPI fees? If PPi then forget it, if not and they were purely bank charges then you can argue this as a valid dispute, so fine - when it happened can you show me a copy of your complaint to the bank and their final response and also confirm it was within the last 6 months?

Obviously, you can see where I am going with this......

[Koptrader]

Re: Default Removal

Ok, so...do I re-write to the Halifax and point out that the details that they have provided to CRA are not a true reflection of the account as it includes the charges that have since been refunded and try and get them to remove it that way? If they refuse, I can then get FOS/ICO involved.

What about Natwest, do you not think they would look favourably on settling the full account in return for removal no?

Thanks
KT