defaulr removal

[Buzzie]

if you had a personel loan which has had a default recorded , which the creditor has stated is legally uninforceable , loan paid off in full can you have this default removed?

[charitynjw]

Re: defaulr removal

Hi Buzzie & welcome to LB.

Are you saying it has already been paid, or are you saying that the future intention is to pay it?

[Buzzie]

Re: defaulr removal

It was paid in full and has a zero balance however they send arrears letter with zero balance ,however i didnt realise had a default against me , think they were reviewed and they sent a letter saying loan didnt meet CCA regulations and reffunded interest .
they have now sent a letter to say wish to apply a notice of correction as debt was not legally enforable by creditor so if wasn't legally enforcebale and didn't meet CCA regulations can they still apply a default notice?

[charitynjw]

Re: defaulr removal

That's a lot of 'they's'
I can't work out who exactly did what when.

[Buzzie]

Re: defaulr removal

sorry
had a personel loan , when i moved i missed payments , didnt receive letters about loan, i had written to the building society to update my details transpired only me current account updated. when i realised loan wasnt being paid i contacted building society and paid of loan in full. This was in 2014.

2016 they refunded interest incorrectly charged to the loan as stated didnt meet CCA regulations , a few months ago i realised a default was recorded against my name. Building society have written to say this loan was not legally enforceable and have asked if agree to notice of correction being placed on credit file to say this debt was not legally enforceable.

If the loan did not meet CCA regulations and was not legally enforceable can they legally reecord a default against me ,

The loan was fully settled in 2014 so is paid but looking to see if can get default removed.

[Joanna C]

Re: defaulr removal

It depends on the circumstances.

If the lender hadn't served relevant statutory notices under the consumer credit act then they lose right to charge interest and while in breach agreement is unenforceable. However once they serve the correct notices then the agreement is enforceable again .

[charitynjw]

Re: defaulr removal

Another way of dealing with this is to put a complaint to the credit reference agency.
They will note the dispute & contact the creditor to check the accuracy of the default entries.
The creditor can give authorisation for incorrect entries to be deleted.

[Buzzie]

Re: defaulr removal

thank you
if i contacted the credit refrence agencies and recorded a dispute relating to accuracy , and the creditor then applies the notice of correction which in their letter have stated would say 'please note this default relates to an agreement which the creditor considers to be unenforceable'
would that be final if they still dont remove the default recorded ?
Would that improve my credit rating?
i am looking to change my mortgage however with this on my credit file will be a problem
would it be worth while going to a solicitor bearing in mind costs

[Buzzie]

Re: defaulr removal

Hi
I
The lettere states '..recently reviewed communications we send to customers who hold personel loans with us............the outcome highlighted that some of the content within these communications did not fully meet these requirements. that 'if your account wa two or more months in arrears at any time between october 2008 and ocober 2014 .....interest should not have been charged to you personal loan from the point that this occurred.

I paid it off in full in Feb 14 so if the notices didnt fully meet CCA regulations and debt was unenforcable, i have fully met my obligations to the creditor . can i insist default removed if their letters didnt fully meet CCA regulations?

[Amethyst]

Re: defaulr removal

[MENTION=1508]Nibbler[/MENTION] ; re the Credit file correction.

The issues which lead to the refund of interest payments don't make the debt unenforceable, so unless there are other issues then it is a bit odd they want to add a noc to your file that the debt is unenforceable.

The Debt is marked as settled on your credit file? And for 3 years? That should be okay with a mortgage lender - have you spoken to any regarding your credit history and what they look for. I know last time I was looking I was told by a couple of the lenders that if I got debts settled and marked as such on my file I could try again in a couple of years when things would look a lot better. I personally wouldn't go for a NoC on your credit file as a mortgage lender would look deeper and seeing that you are arguing a debt in unenforceable might be a bit of a red flag.

[Buzzie]

Re: defaulr removal

Thank you

No its not marked as settled they never updated when it was paid in full!! It was paid in full in Feb 14 so more than 3 years but this isnt on my credit report
shows the full amount of loan as default/delinquent balace with a note to say status partial settlement and explanation payment received as full and final settlement although the payment would not fully clear balance.

I believe they had written the debt of as unenforceable

[Amethyst]

Re: defaulr removal

If it was paid in full the account should show as settled.

Do you have evidence of the amount outstanding at the time you paid and of the amount paid ?

[Joanna C]

Re: defaulr removal

thank you
if i contacted the credit refrence agencies and recorded a dispute relating to accuracy , and the creditor then applies the notice of correction which in their letter have stated would say 'please note this default relates to an agreement which the creditor considers to be unenforceable'
would that be final if they still dont remove the default recorded ?
Would that improve my credit rating?
i am looking to change my mortgage however with this on my credit file will be a problem
would it be worth while going to a solicitor bearing in mind costs

The creditor can't add a correction note to your file only you,

If they have told you to put that then they seem to consider the debt to still be unenforceable even after correcting the defective statutory notices? Do you have this in writing from them?

if this is the position then they will have to remove the default data as they are reporting it incorrectly

[Debt Camel]

Re: defaulr removal

If it was paid in full, the debt should show as Satisfied (not Settled because there was a default.)

You should certainly ask for this to be done. It will NOT improve your credit score, but lenders don't actually pay any attention to your calculated credit score when deciding whether to lend, they apply their own metrics/rules. And having settled the debt in 2014 would mean that you may be able to get a mortgage, say, which you couldn't if the there was a balance outstanding.

But the fact that the loan was unenforceable doesn't mean that there is any reason for the default to be removed.

[Buzzie]

Re: defaulr removal

If it was paid in full the account should show as settled.

Do you have evidence of the amount outstanding at the time you paid and of the amount paid ?

Yes i have the copy of my credit file with the specific loan, i also have a detailed account of payments from the buidling society, which show paid in full , i have the arrears notices they send which show a zero balance , and another letter stating date payment recieved, 'your account has been cleared in full it also says if applicable the appropriate ammenddments are being made to information registered with liscened credit reference agencies.

- - - Updated - - -

thank you so i should ensure the building society up date the information to say that zero balance outstanding and payment received settled in full even though this debt was unenforceable?