HELP PLEASE! Clarification on Defaults on Credit File needed please!!

[sleslie86]

Hello everyone - I am new to this forum and I REALLY need some help please regarding Defaults as I am hearing all sorts of things.

I have 3 defaults on my credit file - here are the dates of default with the original lender, Lloyds TSB:

1. 27/10/2009
2. 17/12/2009
3. 18/12/2009

About 4 months ago, Lowells sent me letters for all the debt and after all this time (and I had previous acknowledged, written to previous DCA's explaining situations and basically fobbing them off with excuses) I agreed to pay the debt off and offer £100 per month. This happened in Sep 2013. My credit file now shows all 3 debts under Lowell (changed from Lloyds TSB) and the date defaults have remained the same as listed above.

It is my understanding that a default is removed from your credit file after 6 years from "date of default" (this is what I am reading from the credit agencies) - is this correct, even if I am still paying of that debt with a DCA, Lowell till 2020?

I have also heard that defaults stay on your credit file for 6 years from when you start paying back the debt? I have also heard that they stay on your account for 6 years when you've finished paying the debt!! Too many conflicting stories here and I am confused and I have trawled the internet for answers with no success.

I can't imagine how a default can stay on my file till 2026 - I'd be 40 years old! From defaulted accounts since I was 23! Surely that can't be right - everyone makes mistakes, but to be punished (not being able to get a mortgage with my partner) for 17 years is a bit harsh.

What is the correct answer please based on my circumstances? Many thanks - your help will be greatly appreciated.

[basa48]

Re: HELP PLEASE! Clarification on Defaults on Credit File needed please!!

Default markers on your credit file (i.e. listed by the Credit Reference Agencies - Experian etc) remain on your record for 6 years from the date they were originally placed on your record. They stay on for the 6 years and should be removed after after 6 years regardless of whether you have finished paying or are still paying back the defaulted debt. They stay on for the max 6 years even if you settle the debt.

All your debt markers should clear on 19/12/2015. I assume they now appear as Lowells because the TSB has sold the debts to them.

Caveat: If you 'default' on the agreed repayment schedule I expect they might be allowed place another default marker on your record.

[sleslie86]

Re: HELP PLEASE! Clarification on Defaults on Credit File needed please!!

Hiya - thank you ever so much.

So, in theory, after the 19/12/2015. No defaults will be showing on my account and my credit score will significantly improve, therefore enabling my partner and I to apply for a mortgage - assuming I keep all my other open accounts up to date and squeaky clean that is?

With hindsight, I suppose that gives us just shy of 1 year, 11 months and 6 days to save for a deposit etc!!

Is that correct basa48? Thank you.

[FlamingParrot]

Re: HELP PLEASE! Clarification on Defaults on Credit File needed please!!

All your debt markers should clear on 19/12/2015. I assume they now appear as Lowells because the TSB has sold the debts to them.

Caveat: If you 'default' on the agreed repayment schedule I expect they might be allowed place another default marker on your record.

No, you cannot be defaulted twice for the same account. Once you were defaulted by the original creditor for breaking the contractual agreement and a default is recorded, it should drop off 6 years after that date, regardless what you do with the account: pay it off, pay nothing, make token payments, pay on a DMP, etc. The account details can be updated to reflect the new owner if sold, but you cannot be defaulted for breaking a payment arrangement on an already defaulted account.

The only scenario where this could happen is if you started new borrowing to pay old debts (not recommended :nono, for example, took out a new loan and defaulted on that one.

[sleslie86]

Re: HELP PLEASE! Clarification on Defaults on Credit File needed please!!

@FlamingParrot

Thanks - so 1. With that in mind after 19/12/2015 - my credit score will improve and I will be able to hopefully apply for a mortgage with the missus assuming I don't miss payments, default on open accounts? This is my main goal.

Just out of curiosity, surprisingly (with 3 defaults) I have 2 x credit cards (one with a limit of £500 which is a secured Cap1 and one with a limit of £800, a non-secured Barclaycard). I also have a current account with Yorkshire Bank with a £700 overdraft. I am maintaining these all very well with no missed payments. All of these opened whilst being 3 x defaulted?? I am stumped! How is this possible?

[sleslie86]

Re: HELP PLEASE! Clarification on Defaults on Credit File needed please!!

No, you cannot be defaulted twice for the same account. Once you were defaulted by the original creditor for breaking the contractual agreement and a default is recorded, it should drop off 6 years after that date, regardless what you do with the account: pay it off, pay nothing, make token payments, pay on a DMP, etc. The account details can be updated to reflect the new owner if sold, but you cannot be defaulted for breaking a payment arrangement on an already defaulted account.

The only scenario where this could happen is if you started new borrowing to pay old debts (not recommended :nono, for example, took out a new loan and defaulted on that one.

Ah, but if I just stopped paying I suppose there's nothing stopping them from sending me to court, issue a SD or CCJ is there?

Also, is it possible to still claim mis sold PPI on some of these debts if I did not agree or sign to PPI with the original creditor... in which case it would bring my debts in to dispute? Or is it too late as I have already agreed to a monthly payment plan?

Can anyone help please?

[sleslie86]

Re: HELP PLEASE! Clarification on Defaults on Credit File needed please!!

bump

[FlamingParrot]

Re: HELP PLEASE! Clarification on Defaults on Credit File needed please!!

@FlamingParrot

Thanks - so 1. With that in mind after 19/12/2015 - my credit score will improve and I will be able to hopefully apply for a mortgage with the missus assuming I don't miss payments, default on open accounts? This is my main goal.

Just out of curiosity, surprisingly (with 3 defaults) I have 2 x credit cards (one with a limit of £500 which is a secured Cap1 and one with a limit of £800, a non-secured Barclaycard). I also have a current account with Yorkshire Bank with a £700 overdraft. I am maintaining these all very well with no missed payments. All of these opened whilst being 3 x defaulted?? I am stumped! How is this possible?

I am even more stumped to read you have a SECURED Cap1 credit card with a £500 limit. :confused2: I've never heard of a secured credit card, just secured loans. £500 is well below the limit required to place a charge on a property, which would be required to secure a debt. :noidea:

As for the others, if your defaults are old, many credit checks just look at data for the past 3 years, especially for low limit credit as described above. Would be different if applying for a mortgage. There is no guarantee of acceptance for a mortgage even with a clean credit file, there are many variables, criteria depends on the lender and it changes all the time. What they look for today may well be very different from what they look for in 2015!

[FlamingParrot]

Re: HELP PLEASE! Clarification on Defaults on Credit File needed please!!

Ah, but if I just stopped paying I suppose there's nothing stopping them from sending me to court, issue a SD or CCJ is there?

We were discussing defaults on your file, as you seemed to be under the impression they could last for up to 17 years! :scared:

The question was whether you would be defaulted again if you stopped paying. As for what a creditor would do if you stopped paying, it's impossible to guess, it all depends on the creditor and the history of the account. Many people have successfully avoided court for years without paying a penny towards their debts, myself included. :thumb: That works better for CCA regulated accounts started before April 2007.

Lowell are fond of SDs, but our Cel is equally fond of setting them aside... :yo:

Also, is it possible to still claim mis sold PPI on some of these debts if I did not agree or sign to PPI with the original creditor... in which case it would bring my debts in to dispute? Or is it too late as I have already agreed to a monthly payment plan?

Having agreed to a monthly payment plan doesn't stop you from reclaiming PPI. You should start a new thread in the PPI section, giving as much details as you can about your accounts.

You say you didn't agree to the PPI, in which case, when it appeared on your statements, didn't you dispute it?

Unless you have all your statements, the first step would be to send a SAR to the original lender (not Lowell) to get all your statements for the past 6 years. If you had more than one account with the same bank, one SAR letter should be enough for all accounts.

If your debts are from loans or credit cards (as opposed to overdrafts), then you could also request a copy of your agreement, by sending a CCA request.

[FlamingParrot]

Re: HELP PLEASE! Clarification on Defaults on Credit File needed please!!

Unless you have all your statements, the first step would be to send a SAR to the original lender (not Lowell) to get all your statements for the past 6 years. If you had more than one account with the same bank, one SAR letter should be enough for all accounts.

Below is the SAR letter, which should be sent recorded delivery with a cheque or PO for £10 to cover the maximum fee. They have 40 calendar days to respond.

Dear Sirs

Ref: xxxxxxxx

Subject Access Request - S.7 Data Protection Act 1998

Under the Data Protection Act 1984 and 1998, and including the right of subject access under these acts, I hereby request that you supply me with any and all historical data in your possession which, in any way appertains to me, including (but not exhaustively) a copy of the original signed executed agreement; statements of account; duplicate statements and/or printouts of all account transactions; all internal and external correspondence sent or received by you including memos, logs, notes, screen prints and transcripts; notes of manual interventions such as telephone attendants' notes, copies of stored telephone conversations, internal and external emails; any other information held on all types of media in any relevant filing system. If you have disclosed any information to a third party (with or without my express permission), will you please include details of this in your reply, along with notes of any legal action passed or pending (to include a true copy of default notices, court orders and the like).

If you store any of the older records on microfiche, please be aware that the Information Commissioner deems this to be a relevant filing system under the Act. As such, any microfiche data must be sent to me in fully legible and comprehensible form.

Where any information that you provide includes any charges, for example returned payments, late payment fees, and so forth, would you please advise your breakdown of actual costs (liquidated damages) incurred for each charge, and the Term or Condition on which you rely upon to claim such a charge. I also require that you forward, within the above mentioned time scale, a true copy of the Terms and Conditions that were in force at the time my account was opened, and any subsequent amendments to those Terms and Conditions.

Additionally, where there has been any event in my account history over this period which has required manual intervention by any member of your staff, or any other person, I require disclosure of any indication or notes which have either caused or resulted in that manual intervention, or other evidence of that manual intervention in relation to my business with you. If you are unable to supply this data because there has been no such manual intervention, then please be so kind as to confirm this in your response.

I enclose the statutory maximum fee of £10.00 to access ALL data held by you about myself. You have 40 days in which to comply with this request.

Yours faithfully,

[FlamingParrot]

Re: HELP PLEASE! Clarification on Defaults on Credit File needed please!!

If your debts are from loans or credit cards (as opposed to overdrafts), then you could also request a copy of your agreement, by sending a CCA request.

The agreement should have a box for PPI, which you should have ticked. They should also supply PPI T&Cs.

CCA request letter below. It should be sent recorded delivery with a PO for £1 and signed using a computer font rather than your real signature. They have 14 days to respond. :thumb:

Dear Sirs,

Account or Reference No.:

I hereby formally request a copy of my Consumer Credit Agreement, pursuant to s.77-79 of the Consumer Credit Act 1974 (CCA1974).I require you to provide me with a true copy, or reconstituted copy of the credit agreement relating to any account you deem to be mine, together with any other documentation the Act requires you to provide. I expect you to comply fully and properly with this request, within the statutory time limit (12 + 2 days).

If it is your view that you are not the creditor, s.175 of the CCA1974 applies in the case of a simple assignment, and places a duty upon you to pass this request to the creditor. In the case of an absolute assignment, you are a creditor as defined by s.189. If you contend that you purchased the rights but not the duties of any agreement, you are reminded that s.189 of the Act is clear that an assignment is of both rights and duties. Your attention is drawn to ss.5(2), 3(b), 6 and 7 of the Consumer Protection from Unfair Trading Regulations 2008 (CPUTR).

In line with recent OFT Guidance (issued Oct 2010) surrounding Unenforceability, I presume you're aware that the OFT has stipulated that 'sections 77-79 of the Consumer Credit Act 1974 outline the information creditors must provide to debtors under fixed-term, running account & Hire Agreements'. This simply means that under these sections a debtor can pay £1 to get:

• a copy of their agreement
• copies of some of the other documents mentioned in their agreement
• a statement of account

If this information is not provided within 12 working days the debt becomes unenforceable. This means a creditor cannot:

• make the debtor pay the debt before they're supposed to
• get a court judgment against the debtor

So, in line with the OFT Guidance, and the Consumer Credit Act, please find attached my £1 payment, which is the statutory fee - note that these funds are not to be used for any other purpose.

Yours faithfully,

[sleslie86]

Re: HELP PLEASE! Clarification on Defaults on Credit File needed please!!

Having agreed to a monthly payment plan doesn't stop you from reclaiming PPI. You should start a new thread in the PPI section, giving as much details as you can about your accounts.

You say you didn't agree to the PPI, in which case, when it appeared on your statements, didn't you dispute it?

Unless you have all your statements, the first step would be to send a SAR to the original lender (not Lowell) to get all your statements for the past 6 years. If you had more than one account with the same bank, one SAR letter should be enough for all accounts.

If your debts are from loans or credit cards (as opposed to overdrafts), then you could also request a copy of your agreement, by sending a CCA request.

Actually I did - a few years ago. As mentioned in my very initial post, I was fobbing them off. When I mean fobbing them off, I meant I was asking for true copy, or reconstituted copy of the credit agreements, I eventually received something in the post, it was a some copy of my credit card agreement (I believe it was, I will have to check my files) I am sure it was. It had my signature on it and it had a black X on something relating to PPI - I am pretty sure - so I might be banged to rights on that one - but there is no harm in trying again, seeing as though Lloyds TSB has split, their records might not be in complete order? Who knows - you guys are amazing and seem to know current situations!

Basically, the 3 defaults are 1 x Loan, 1 x Credit Card and 1 x Current Account Overdraft.

Struggling with work and debt, I became ill with depression (2008), made redundant from my job (2009) and decided for a healthier future, travel to Australia in Apr 09 and ignore my DMP (with the Debt Specialists) hoping for a permanent life in Oz. Obviously this didn't work out and came home 10 months later - but I was back to full health at this time. Whilst abroad my father was sending letters in the post "Not at this Address", as I wasn't living there. I did open a letter that had arrived since I returned and it was from a DCA and that's when it all kicked off - I even went to see Lloyds TSB directly and they explained it had all been sold on and there was nothing they could do. I didn't know it had even defaulted, I didn't even know what one was tbh! Basically all 3 accounts where defaulted when I was in Australia, I had no letters saying I had been defaulted - probably because my father was sending them back in the post saying "Not at this Address".

Then all the letters of correspondence began... I agreed to pay a small amount each month, then this didn't happen because my employer failed to pay me on time. Then for a few years, the debt was sold from one DCA to the next.

I managed to negotiate £400 so pounds off my overdraft debt because, before the default was registered, I signed up with that DMP company. I argued that whilst I was on a debt management plan and struggling, they were still charging me excessive interest, late payment fees (I saw this in statements they sent me when I was quizzing them about CCA's) and was totally unfair whilst I was struggling. They (Lloyds TSB) responded to this, wiped some debt off, and then informed the DCA at the time. I ignored them after this... but all at the same time I was asking for true copy, or reconstituted copy of the credit agreements and as I state above, I believe they sent my something that looked like they had me banged to rights with the credit card agreement, but not with the loan, nor the overdraft? It was a planned overdraft when I had it with a Platinum Current Account - not sure if a credit agreement applies to this? Suppose not.

I then met the girl of my dreams and we decided to live together in a rented flat. I didn't hear a squeak from anyone for months when we moved in Apr12 (new address for me) but then in Aug13 or Sep13... I received letters from Lowells! At this time I thought... "okay... face your demons and just pay it... pay what I can afford, £100 per month". This is where I am at now.

The loan that I defaulted was actually a re-consolidation loan for an existing loan and a credit card I maxed. Lloyds TSB were stupid enough to give me a AirMiles DUO cards even after this re-consolidation loan, with a £2,500 limit - a little irresponsible of them really! This is the credit card I defaulted on.

• Should I go through the whole process again? I.e. SAR letter & CCA letter, therefore determining if 1. their Lloyds/TSB's records are up-to-date and 2. if I have been mis-sold PPI insurance or not.
• Can I still do this even though I am paying Lowells back £100 per month and effectively admitting the debt
• Should I still continue to pay Lowells £100 per month if I am querying the accounts with the original lender? If not, what should I do?
• Who do I send the SAR & CCA letters to now as Lloyds TSB has split?

As I say, I think I am stuffed with the credit card, CCA & PPI from previous correspondence a few years ago - I have no idea about the Loan or Overdraft though but I'll try again with the advice and drafted letters you have kindly provided!! .

Thanks for your help FlamingParrot - you are truly a decent person on this planet and offering your advice.

[sleslie86]

Re: HELP PLEASE! Clarification on Defaults on Credit File needed please!!

bump

[sleslie86]

Re: HELP PLEASE! Clarification on Defaults on Credit File needed please!!

Bump

[sleslie86]

Re: HELP PLEASE! Clarification on Defaults on Credit File needed please!!

Bump