How to Dispute a Very Catalogue Account Default or Late Payment (Shop Direct)

Overview: Disputing a Very.co.uk Catalogue Credit Entry

Very.co.uk (operated by Shop Direct Finance Company Limited / The Very Group, previously Littlewoods and Very) provides millions of UK shoppers with catalogue store accounts and running-account credit facilities. Because catalogue accounts typically combine high interest rates (often exceeding 39.9% to 44.9% representative APR) with frequent automated credit limit increases, accounts can quickly become unmanageable when unexpected life changes occur.

If Shop Direct has recorded a negative default marker, late payment status, or unmanageable arrears on your credit file with Experian, Equifax, or TransUnion, you have statutory remedies under UK consumer law to audit and challenge that reporting.

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3 Legal Grounds to Challenge a Very Catalogue Default

graph TD
    A[Very Catalogue Credit Dispute] --> B[1. Irresponsible Lending / CONC 5]
    A --> C[2. Section 78 CCA Documentation Request]
    A --> D[3. Defective Section 87 Default Notice]

    B --> E[Aggressive Credit Limit Increases without Affordability Checks]
    C --> F[Missing Executed Agreement Signed at Inception]
    D --> G[Failure to Give 14 Clear Days Notice Before Defaulting]

1. Irresponsible Lending & Unsolicited Limit Increases (FCA CONC 5)

Under FCA Consumer Credit Sourcebook CONC 5.2A, catalogue credit providers are required to perform comprehensive assessments of creditworthiness and affordability before increasing credit limits.

• Very accounts frequently start with a £250 credit limit and are automatically increased to £1,500, £3,000, or £5,000 within short periods, despite the customer only paying minimal monthly amounts.
• If Shop Direct failed to check your actual disposable income or ignored evident signs of financial vulnerability before granting credit limit expansions, you can submit an Affordability Complaint.
• Remedy: The Financial Ombudsman Service (FOS) regularly orders Shop Direct to refund all interest and charges added above the initial manageable credit limit and delete negative default records from credit reference agency files.

2. Section 78 Consumer Credit Act Request

Under Section 78(1) of the Consumer Credit Act 1974, you are entitled to request an official copy of your original executed credit agreement along with terms and a signed statement of account by enclosing a statutory £1 fee.

• If Shop Direct (or debt collection purchasers like Lowell or Cabot who bought the account) cannot produce a legally compliant copy of the agreement within 12 working days, Section 78(6) renders the balance legally unenforceable in court.

3. Defective Section 87 Default Notice

Under Section 87(1) of the Consumer Credit Act 1974, Shop Direct cannot record a default marker or demand early payment without first serving a valid statutory Default Notice.

• The notice must give you at least 14 clear days to remedy the breach.
• It must strictly specify the arrears amount (excluding unlawful admin fees) and follow statutory prescribed wording under the *Consumer Credit (Enforcement, Default and Termination Notices) Regulations 1983*. If service was defective, the default entry is unlawful under Principle (d) of the Data Protection Act 2018.

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Verified Shop Direct / Very Group Profile

Always address formal dispute letters and statutory notices to their registered corporate headquarters in Liverpool:

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Step-by-Step Escalation Workflow

graph TD
    A[Step 1: Submit Formal Complaint to Speke House Executive Team] --> B[Step 2: 8-Week Statutory Investigation Window]
    B --> C{Final Decision Issued?}
    C -->|Default Deleted / Interest Refunded| D[Success: Credit Profile Restored]
    C -->|Complaint Rejected or Deadlock| E[Step 3: Escalate to Financial Ombudsman Service]
    E --> F[FOS Orders Shop Direct to Remove Negative CRA Markers]

Step 1: Issue a Formal Dispute Letter

Draft a structured complaint referencing your Very account number. Email it to `customercomplaints@theverygroup.com` and dispatch a physical copy to *Skyways House, Speke Road, Speke, Liverpool, L70 1AB* via Royal Mail Signed For. State clearly whether you are challenging:

1. Irresponsible lending and automated credit limit increases (FCA CONC 5).

2. Defective default notification under Section 87/88 CCA 1974.

3. Inaccurate balance reporting under Data Protection Act 2018 Principle (d).

Step 2: The 8-Week Regulatory Investigation Period

Under FCA DISP rules, Shop Direct has 8 weeks to investigate your complaint and issue a formal Final Response letter. Demand that Shop Direct place a temporary "Notice of Dispute" on your credit file while the investigation is underway.

Step 3: Referral to the Financial Ombudsman Service (FOS)

If Shop Direct rejects your complaint or fails to resolve the matter within 8 weeks, submit your case to the Financial Ombudsman Service (0800 023 4567 | Exchange Tower, London, E14 9SR). The Ombudsman independently assesses fairness and can order Shop Direct to delete the default marker and refund excess charges.

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Frequently Asked Questions

Can Very pass my defaulted account to a debt collection agency?

Yes, Shop Direct frequently assigns delinquent catalogue balances to agencies such as Lowell Portfolio I Ltd, Cabot Financial, or Capquest. If your account is disputed, demand that collection activity cease under FCA rule CONC 7.14.

What if my catalogue default was caused by fraudulent orders?

If unauthorized orders were placed on your account without your consent, you can submit a formal fraud affidavit under Section 83 of the Consumer Credit Act 1974. Shop Direct must investigate the delivery addresses and purge fraudulent markers from your credit reference file.

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