Difference between Delinquent and Default status on Credit Files

[Ruby]

I have been going round in circles with this and not even the people I speak to at Experian seem to be sure of the answer.

I know that a default stays on a credit file for six years irrespective whether the account is paid off/closed or not.

Can anyone tell me about a delinquent account? Does the same apply?

[nemesis45]

Re: Difference between Delinquent and Default status on Credit Files

I have been going round in circles with this and not even the people I speak to at Experian seem to be sure of the answer.

I know that a default stays on a credit file for six years irrespective whether the account is paid off/closed or not.

Can anyone tell me about a delinquent account? Does the same apply?

Good morning Ruby,

A delinquent account is a live account which usually shows on credit files with late payment markers and Not registered as defaulted, this
means it will not be removed from credit files in the way a defaulted account would.

How long has the account been " delinquent"?

The Information Commissioners Office says that " late payment markers should not be used instead of defaulting an account.

nem

[Ruby]

Re: Difference between Delinquent and Default status on Credit Files

Thanks for your response. The account has been delinquent for nearly 10 years - its a secured unregulated loan.

[nemesis45]

Re: Difference between Delinquent and Default status on Credit Files

Thanks for your response. The account has been delinquent for nearly 10 years - its a secured unregulated loan.

OK, Is any action being taken on this loan?

Is it still with the original lender?

nem

[Ruby]

Re: Difference between Delinquent and Default status on Credit Files

The account was taken out in August 2007 and original lender was Advantage (ADV2) who sold my account with a whole lot of others to Arrow in 2012 (assuming due the financial crisis and the fact they ceased trading).

No action being taken. I have tried time and time again to either get them to default the account or capitialise the arrears however they are not lisening. Its now with the ombudsman service - I am not holding my breath as the woman I am dealing with at FOS is desperately trying to flog me off saying there is nothing they can do for me as its an unregulated product.

[Ruby]

Re: Difference between Delinquent and Default status on Credit Files

I am in the process of sending the ICO the relevant details, their form already printed out from the internet. This issue has had a HUGE negative impact on our lives and our business (its a joint account).

[Diana M]

Re: Difference between Delinquent and Default status on Credit Files

If it's an unregulated business loan then the FOS are not able to help you.

You say it's a secured loan which has arrears so do be careful on how you treat the issue so as not to provoke possession proceedings.

Are repayments currently being made and is anything being paid to reduce the arrears?

What was the original loan term and has that expired?

Is it owned by Arrow Global Ltd or Arrow Global (Guernsey) Ltd ? There's a difference.

Sorry for all the questions but secured loans need careful handling so as not to risk the roof over your head.

Negotiation is better than confrontation.

Maybe Arrow can't capitalize the arrears because they are not a 'credit giver' so not authorised to carry out any credit adjustment etc.

Di

[Ruby]

Re: Difference between Delinquent and Default status on Credit Files

Its not a business loan, however our company is a limited company so any credit granted, the financial companies do a personal credit search. I understand what you mean about risking the roof over our heads. Yes we are paying on a regular basis. No the term has not expired. I believe its Arrow Global Limited. I should mentioned the property is in Scotland, if that has any bearing.

[Ruby]

Re: Difference between Delinquent and Default status on Credit Files

Maybe Arrow can't capitalize the arrears because they are not a 'credit giver' so not authorised to carry out any credit adjustment etc.

Does that not mean that they are not meeting their obligations under the original contract agreement? The account was sold to Arrow.

[Debt Camel]

Re: Difference between Delinquent and Default status on Credit Files

The usual ICO rules for when a default should be added (3-6 months in arrears) do not apply to secured loans. If you have an agreement with the creditor that is satisfactory there is no reason why they should add a default.

[Diana M]

Re: Difference between Delinquent and Default status on Credit Files

Its not a business loan . . . we are paying on a regular basis. No the term has not expired. I believe its Arrow Global Limited. I should mentioned the property is in Scotland

Why was the loan unregulated not regulated?

If it's not a business loan what was the purpose of the loan (home improvements, car purchase, consolidate overdraft or other loan/credit card etc)?

How much was the sum borrowed not including any interest or PPI?

Some loans were miss-sold as unregulated when they should have been regulated. I'm NOT raising your expectations but you need to check this out.

You say the loan was taken out in August 2007. Is that correct?

Also check whether it was assigned to Arrow Global Ltd or Arrow Global (Guernsey) Ltd. The latter is unlicensed.

Living in Scotland is relevant if any legal proceedings were to be issued (it's a different jurisdiction to the rest of the UK). However the Consumer Credit Act is still applicable but only if that applies to your loan.

Who is 'managing' the account since Arrow mostly outsource their collections to third parties?

Di

[Ruby]

Re: Difference between Delinquent and Default status on Credit Files

The loan was unregulated and self certified. Total borrowed was 60K. We took out the second charge on our home to pay off another second charge and raise extra capital for debt consolidation (hindsight is a fine thing!!).

No PPI fortunately or unfortunately.

Yes, date is August 2007.

Loan was assigned to Arrow Global Receivables Management Limited in 2012 and now in the past few months its been assigned to Arrow Global Limited (hmm - passed from one desk to another??). Not assigned to a third party.

I know its risking but I am tempted to just stop paying them. I am so sick of living in limbo. Ten years is a long time and I don't see an end to this situation unless we win the lottery and offer them a settlement.

[Diana M]

Re: Difference between Delinquent and Default status on Credit Files

Loan was assigned to Arrow Global Receivables Management Limited in 2012 and now in the past few months its been assigned to Arrow Global Limited

. . . I am tempted to just stop paying them.

Arrow Global Receivables Management Ltd is unlicensed - it lapsed in September 2015. However that won't matter if the loan is unregulated and I think you need to get that checked out first and foremost (should it have been unregulated or regulated).

I wouldn't stop paying until you've taken legal advice on your current situation.

Have you got a thread on the forum about this loan which I can read?

Di

[Ruby]

Re: Difference between Delinquent and Default status on Credit Files

Di, thank you so much for your input. I have raised this issue on a few occasions on LB. I am a technophobe and don't know how to 'link' the various discussions on this thread. Some on them on the the VIP site.

How is it possible to check whether it should have been regulated or unregulated? I remember at the time brokers saying that on our income the only way we could secure more borrowing is going self cert.

[Ruby]

Re: Difference between Delinquent and Default status on Credit Files

Just been checking some paperwork.

£45,000 was paid to Kensington Mortgages to pay off two secured loans in August 2007. It is highly likely that one of the two were under the 25K mark. Does that mean that part of my agreement should have been regulated?

Can I ask admin to move my thread to the VIP section please?