Reopen a settled credit account

[ajsedd]

Hello,

I’ve been having ongoing issues with a finance company following the VT of a car. The finance company claimed I owed them
for “added products” and the collection fee for the vehicle, I disputed this and referred it to the ombudsman to review.

The finance company assured me that whilst it was getting looked
into that they would not look at impacting any credit reports. Unfortunately, not long after a default was recorded. The lender accepted this was an error and had the default removed. I have spoken with Experian and Equifax, both confirm the default was removed.

The account is shown as settled on Equifax and Experian. I have just logged onto Experian and the account is shown under the settled tab. The last update on Experian says “In good standing -
£0”. It also says “No issues in this accounts payment history that affect your score”.

Today, out of the blue I received a letter from the finance company asking for the settlement amount again. The Ombudsman are still looking into my complaint.

Can a finance company reopen an account that is shown as settled or record a default on the account? Im worried that in 14 days time another default will be recorded and I’m back to square one fighting to get the default removed again. Im hoping that a settled account is exactly that and can’t be reopened but wanting to make sure.

Thanks for any help/guidance.

[ajsedd]

Any ideas please? Thanks in advance.

[R0b]

Who is the finance company you are dealing with?

We haven't seen the letter so it's difficult to comment on what action they may take and if anything, they should issue a default notice before one is placed on your credit file.

Ultimately it would be a case of writing back to them and explaining that the matter is currently with the Financial Ombudsman and in line with their obligations under the CONC Rules they should stop pursuing you for the amount until the FOS path has been exhausted. Otherwise you will consider their repeat demands as harassment and/or any adverse entries on your credit file as a breach of data protection.

Also suggest you download a copy of your credit file as it currently stands so if they do add a default, you can argue they settled it before.

[ajsedd]

Hello R0B, thanks very much for your reply.

It is FCA Automotive who I’m dealing with. I emailed them back, they have said they will not impact my credit score until the ruling from the Ombudsman and say all the letters we are getting are system generated and cannot be stopped.

I’m going to pay the outstanding amount and then claim it back if the Ombudsman rules in my favour.

Like I said originally, the default has been deleted and the account is showing as settled. If, in say a couple of months, the Ombudsman ruled in their favour would they be able to record a default again on the account? Seems somewhat unfair that they could after they have shown the account as settled and a year or so after the date the dispute started? I was hoping that once it was shown as settled that would be the end of it...

Thanks again,

Alex

[R0b]

Well yes, they could mark your credit file if the FOS didn't rule in your favour. However you could also argue that the additional products are separate contract to the car finance and are not mutually exclusive.

In your agreement it would say you agreed to pay the additional products over a period of time and just because you terminated the HP element does not mean you agreed to the termination of the rest.

it is a technical argument so if you are not comfortable running with it, I suggest you pay up to avoid any adverse entries.