IDem refusing to default

[Colin G Quinn]

Hi,

I've briefly read the previous posts; it would be strange within the industry for a debt to be assigned twice without the agreement having first been terminated. Unless perhaps the series of 'Creditors' are playing hot potato with a debt accrued under an Agreement which they all know to be unenforceable, i.e. 'no, you have it.'

The Consumer Credit Act provides a full balance cannot be called in before service of a compliant Default Notice has been effected, and the term within expired. So, there is a chance a mistake has been noticed hence the reluctance to serve a Default Notice now, as said notice would be calling in the full balance and not arrears due to the premature termination.

Of course the last outpost retreat for a Creditor, and usually an alleged assignee, is to say the loan period has matured, therefore service of a Default Notice is irrelevant. But an Act of Parliament, installed for the protection of Consumers, doesn't say that.

If no Default Notice has been served and no Default registered against you, I would suggest the Creditor knows the alleged Agreement to be unenforceable. As service of a Default Notice is the very strict precondition for the enforcement of a regulated Credit Agreement.

[Joanna Connolly Solicitors]

hi can anyone help I took a loan with Egg in 2009 for 6000.0 monthly payments 164.54. I ran into financial difficulties February 2009 and was paying 35/month until I went on a Dmp with StepChange where I never paid over 20/month. I went self managed in 2017 was paying 23/month this changed November 2017 to 1/month.
I have asked them to default but they won’t stating. A default should not be applied to a credit record whilst an agreed payment or payment through a DMP are being maintained.
Any advice would be gratefully received

Do you have an update on the lack of Default on this debt assigned to IDEM?

Di

[Weakmoments]

Thanks Di since I know it’s unenforceable I’m not going to do anything more plus I’ve got their letter regarding the updating of my credit file.

[Joanna Connolly Solicitors]

I have sent this to Niddy today and he has said its not enforceable.

If you’ve been told the credit agreement is unenforceable then consider whether you should make a fuss about the default issue now or whether you should just keep quiet until they start to make any noises.

From what you say the debt has been assigned twice so I don’t know why it wasn’t defaulted before it was terminated by Egg and sold since that could cause Idem problems if they attempted to enforce the debt in court.

Dont tell them what the potential flaws are in case they try to remedy them.

Keep a screenshot of your CRA file showing it’s not been defaulted as you never know when that might come in handy

Di

[Weakmoments]

Thanks for your response Still Waving, Yes I have sent this to Niddy today and he has said its not enforceable.

[Still Waving]

Thanks Di for your response, I did send a CCA request and they sent back In compliance of section 77 of the CCA enclosing a copy of executed credit agreement, copy of the terms and conditions and a statement of account. But this only is for Egg x

Have you sent this copy of Agreement to Niddy for his opinion as to whether or not it is enforceable? If not I would recommend doing so.

[Weakmoments]

Thanks Warwick I will SAR Egg.
I never had any PPI

[Warwick65]

So by my calculations the old guidance should have been used.

As you are paying there is no danger of acknowleding the debt so I would be writing to Idem with a copy of the old guidelines so they change it.
I would also SAR egg to see if they did actually default the actually before selling it in. Brittanic were based in Luxembourg and as far as I am aware would not have been authorised to hold a live account.

I would also report to the credit reference agencies but maybe wait until you have your SAR back.

Did you have PPI on the loan

[Weakmoments]

Thankyou for your response Warwick.
I have checked on my credit file and yes it does appear on my credit file as late payment
I took out the loan in 2009 made the contracted payments until February 2013 when I was in the process of entering a DMP,
Im sorry if I was unclear previously.

[Warwick65]

These were in place from 2007 until 31st Dec 2013 I think ICO Guidance.pdf

[Warwick65]

I know this sounds really obvious and I am sure you have done it

Have you checked on your credit file- does the account appear?

If it was defaulted back in 2010 it would no longer be on your credit file

The ICO guidance from back in 2010 certainly said accounts should be defaulted within an appropriate time - I might have a copy somewhere but it will take me a while to look. The new arrangements cam into force in Jan 2014

[Weakmoments]

Thanks Di for your response, I did send a CCA request and they sent back In compliance of section 77 of the CCA enclosing a copy of executed credit agreement, copy of the terms and conditions and a statement of account. But this only is for Egg x

[Joanna Connolly Solicitors]

Egg sold the original loan to Britanica Recoveries in July 2011 they then sold it to Idem capital securities in August 2014.

Okay, so since this debt has been assigned twice then the current owner (Idem) would have to prove both assignments if they wanted to enforce this debt in court.

If the first assignment is flawed then the current owner may not actually ‘own’ the debt for enforcement purposes. Maybe the first assignment is good but I thought I should make you aware of all the possible legal twists and turns with debts

Have you ever sent a section 77 CCA Request to Idem (or anyone else) ?

Non compliance with that request by the statutory timeframe would make the debt unenforceable in court until or unless they do comply.

I’m aware your original question was about the fact you believe the debt hasn’t been defaulted but that question actually raises other questions.

Di

[Weakmoments]

Egg sold the original loan to Britanica Recoveries in July 2011 they then sold it to Idem capital securities in August 2014.

[Weakmoments]

Thankyou for you response sorry I took it out August 2009 and it would of ended July 2014. I made reduced payments from February 2013 ( previously made typo sorry).