HELP NEEDED Please - Default

[Molly2015]

Hello,

I was recently contacted by CFO lending confirming that my balance is £446.50 and to contact them to pay.

This debt is currently not showing on my credit file and is from June 2011.

After researching it is an old payday loan. CFO lending have been investigated by the FCA over the past couple of years and have now been given the go ahead to chase old debts but are not allowed to carry on lending money.

After numerous emails back and forth it turns out that my original default from 2011 was removed from my credit file by them. They are saying that if I do not pay or agree to pay this debt by the 8th November they will issue a notice of intention to default against me and record this with the credit reference agencies.

Surely they cannot issue a default dated November 2016 for an account that defaulted in 2011? If I was originally defaulted and they removed that surely they are only allowed to re-instate the original default?

If I was to pay the amount owed before the 8th November I assume they would add it to my credit file as paid (without a default) and then it would look like I have had a recent payday loan and stay on my file for a further 6 years?

Advice needed please I don't know what to do with this. I do not want this hitting my credit file in any shape or form but if it has to then I would rather it was added from the original default date.

[charitynjw]

Re: HELP NEEDED Please - Default

Hi Molly2015

Here's a link to an [MENTION=48934]Debt Camel[/MENTION] article

http://debtcamel.co.uk/debt-default-date/

Only the first default date for a debt matters

There can only be one default date for a debt. Sometimes your credit file shows a default marker each month that it is still in default – but here it is the first default date that matters and the whole debt will disappear six years after the first default.
If a debt is sold to a debt collector, then the new creditor should use the same default date as the original creditor did.
What can you do if a default date looks wrong?

If you think an incorrect default may have been added, or the default date is wrong, it is worth reading the above “Principles” document in detail, the guidance relating to mortgages if that is relevant for you, and also these case studies that the Financial Ombudsman has reported.
To correct a problem with a default on your credit file you can:

• write to the lender (or the debt collection agency if your debt has been sold by the original lender), explaining why you think it is wrong. Don’t just copy out the guidance above, add the facts and dates which relate to your specific case. Say whether you think the default should be removed or what you think it should changed to (“I therefore ask you to amend the date of default to be dd/mm/yyyy”);
• it’s not usually worth complaining to the credit reference agency. They are only recording what the lender has told them;
• if you haven’t had your complaint to the lender resolved within 8 weeks, put in a complaint to the Information Commissioner or if you are complaining about the default date on a secured loan after bankruptcy, put in a complaint to the Financial Ombudsman.

I would recommend you read the whole article. It was from some time back, but from the dates in the 'comments' it appears to still be applicable.

[Debt Camel]

Re: HELP NEEDED Please - Default

Hi Molly,

if they add a default it should be back in 2011,

However, my first thought with this would be was the payday loan from them "affordable" ?

At the moment there are a lot of complaint being made to payday lenders about unaffordable loans. The regulator's definition of affordable is that you have to be able to make the laon repayment without undue hardship and without borrowing more money - on that basis a lot of payday loans were unaffordable! Some of these complaints are being paid pout by the lender, others, getting taken to the Financial Ombudsman where many are being upheld.

Here is a page with more details, including a template letter and a LOT (literally thousands) of comments below the article from people who are making these complaints : http://debtcamel.co.uk/payday-loan-refunds/

If a complaint is up held, the typical offer is a refund of any interest paid (or added in the case of a balance outstanding) plus 8% statutory interest plus the loan being deleted entirely from your credit record.

If you used other payday lenders, think whether you should be complaining about any of them too!

[Molly2015]

Re: HELP NEEDED Please - Default

hello, thank you for the advice. i put an unaffordable complaint into them last week and have since gone back and forth with the collections team arguing my case. i eventually told them that i wanted my conplaint dealt with my their conplaints team and to forward on or give me their contact details. it has now been passed on with an initial response received today but neither will confirm what they have initially said about my default. this company have been stopped from future lending by the fca but have been given the go ahead to chase old debts from 1st october. by the looks of it they have had accounts ready to contact people once they were given the go agead. they have answered everything within a matter of hours where usually they would take days or weeks. i currently have a conplaint against wonga and payday uk.

part of the redress system with cfo lending is that they were sending mis-leading and threatening emails at the tine of the loans. looks like they haven"t changed their ways at all if they are threatening me with a new default which isnt allowed. my balance has almost been halved under the redress system i only had two loans with them so not sure if an unaffordable claim would be upheld but will not consider paying a penny until they confirm the correct information on how this will now affect my credit file

- - - Updated - - -

thank you

[Debt Camel]

Re: HELP NEEDED Please - Default

ok, let us know how it goes!

[Molly2015]

Re: HELP NEEDED Please - Default

Hello, see below extract from CFO lending regarding my default. I am still none the wiser whether this is going to be added with the original date or a new default issued. Looks to me like they are going to issue a new default. They have partially upheld my unaffordable loan claim and offered to wipe the interest and put the loan back to the original value. Seems to me I cannot win either way though. If I do pay now and avoid the default being entered on my credit file my credit file will be updated to say I have paid this debt? Showing as a payday loan for another 6 years which I don't want either but I certainly don't want a new default for a further 6 years either.

In your emails you were unhappy with us applying the default and queried how it would affect your credit file moving forward. Just to explain, any existing default entry applied by CFO Lending has already been removed from your credit file as per the FCA redress explained above. I note you have not repaid anything towards Agreement Number .............................., so this meant there was an outstanding balance. This is why we are now adhering to the correct process of applying a default onto your credit file and this has been confirmed by the FCA to be correct.

Any advice on what to do now please? Surely they cannot add this as a new default dated 2016 when the account defaulted in 2011.

[Bielawa1]

Re: HELP NEEDED Please - Default

I had the same deal with the re-adjustment of balance.
I've got a payment plan in place for the remainder , with the original default date but no prior reporting history til this year and the fresh after redress balance now showing.
I think they are saying if you can pay the remainder by Nov 8th they'll not make an entry or most likely put it on but mark as cleanly settled, if not you'll get a default back to 2011 showing the after redress balance, like mine.
Can't move the default date from 2011 so will still drop off next year but they do have to accurately record account activity even if it's the corrected last months of the 6 years so FCA would probably agree.
If you got the entire balance wiped for irresponsible lending then i believe you can get it totally removed.
MyJar, another lender i used never reported anyone to the CRA's for years then suddenly started around this year.
I got a redressed balance like CFO with an offer to pay the remainder within 2 weeks to have it show as cleanly settled with nothing adverse , or if not i'd have a 3 year backdated default applied with new balance.
Fairly sure this is what CFO are proposing, check with them and get anything in writing/email as always.