Halifax Overdraft Default Woes

[Never-In-Doubt]

Re: Halifax Overdraft Default Woes

Morning

Sadly as with most bank accounts, defaults get applied at weird and wonderful dates without notification. Unlike credit cards etc there is no requirement to comply with s.87/s.88 before they apply a default to your credit file.

Don't confuse the regulatory compliance of s.87/s.88 with an actual credit reference record.

That said, you say you only missed paying funds in for 2 months - is this accurate? Were you being charged at the time, ie was it authorised or unauthorised overdraft? I note this was applied in Jan/Feb 2011 yet it's not 2013, the complaint will fail as it is now 2013. However can you clarify, prior to that date were you maintaining payments into the OD and also, were you maintaining payments after those dates?

I'm asking, lets presume you paid money in on Dec 2010 then missed Jan/Feb 2011 but then paid in again March 2011 and cleared it later that year, if that was the case the default would be incorrectly applied. However if lets assume you missed those payments then paid some in then missed more and so on, then the DN might be valid.

A SAR is rightfully helpful, but be specific on what you need - statements is the key, a DN matters little unless they were taking legal action as a default on your credit file is not the same as a s.87/s.88 regulatory default notice in line with CCA(1974).

Should be able to help (explain processes), once you provide the missing blanks.

[fivezerothree]

Re: Halifax Overdraft Default Woes

hi 503

interesting post, can't help you myself but looking forward to the comments that should be coming shortly. Hope it goes well for you.

Thanks Caps! I'm not sure that I have any ground to stand on because other than the fact they didn't send these letters or at least I didn't receive any of them I only have their unethical nature to comment on.

Being defaulted for not being able to pay an insane amount of charges each month is pretty disgusting behaviour – legal though! haha

I'm willing to try all angles though because job progression is on the line.

[CAPS ESC]

Re: Halifax Overdraft Default Woes

hi 503

interesting post, can't help you myself but looking forward to the comments that should be coming shortly. Hope it goes well for you.

[fivezerothree]

I was referred to this forum by a member of another popular forum and was told that the mods and admin are really the mutts nuts when it comes to particulars of Default etc.

I will briefly explain how and why etc.

Opened a bank account as a bill account and it came with a £100 overdraft. I struggled financially for a good while and the overdraft escalated in charges up to £700. I couldn't afford the £5 per day charge even though I was putting money in the account monthly to help reduce the effect. My cries of financial difficulty fell on deaf ears and they defaulted me in April 2011.

Here's the tricky part. I only found out I had been defaulted last week with a credit report after being refused car finance. I received no letters of any sort nor was I informed. The account was simply closed at my request and they moved it onto their contracted out collections department, BLS.

Personally my life is much more on track nowadays, I have two good jobs but I now require a half decent car to afford the insurance premiums of a 25 year old new driver. The reason being is that to move up the line I need my own transport. I've tried to get insured on throw-away cars but they want in excess of £5000 to insure me... It seems a reliable and safe 5-9 year old car for above the £2500 range is more than affordable but I require the finance!

I have started the complaint process as no one until today could tell me exactly how or why I had been defaulted. Turns out I hadn't put any money in the account in February and March 2011 which led to a default.

I am currently sorting out my SAR request and already have a complete statement for the account history arriving in a few days for my own records.

My problem or rather question is that Halifax has said that they cannot provide a true certified copy of the letters (including warnings) that they sent because they literally don't have them.

Correct me if I am wrong but I thought it was a legal requirement for banks to keep a record of all sent correspondence? Secondly if the banks cannot provide proof that that they ever sent me a letter to default me or indeed a letter to tell me in advance that this would happen if I didn't bring the balance to zero – they can't substantiate the default?

I don't give up easily and have had my own way with many companies and banks before now. Probably the best being refunded for two years of Sky subscription just for poor service. However I realise that this journey will be substantially harder!

I'm confused as to what grounds to stand on now. It's worth noting that the debt still has £300 or so outstanding and I will pay it off as soon as I know I may have the smallest amount of bargaining power/ground to stand on. Otherwise I might as well pay it off at the agreement rate.

I would like anyones experience really or if anyone has any more information on the hoops that the banks have to jump through in order for it to be substantiated etc.

Many thanks and Happy Easter!