Lenders too quick to issue default listings

Lenders are issuing default listings without giving borrowers enough time to remedy defaults or indicate that they intended to comply with their obligations, according to the Financial Ombudsman Service.

FOS has highlighted systemic errors in default and serious credit infringement listings in its latest member newsletter.

In one case, a lender was issuing infringement notices in cases "that did not indicate to a reasonable person that the customer was intending to evade their obligations under the credit contract."

In other cases, the lender was issuing default notices for amounts that were less than 60 days overdue.

And FOS found that another lender was issuing default listings that did not comply with the relevant section (section 88(3)) of the National Credit Code.

The same lender was issuing default notices for amounts that were less than 60 days overdue.