Help with Next retail and duplicate entries

[stephen22]

Hi all,

Just after some advice, I will keep it brief.
I had a next account, in 2009 due to serious health issues I defaulted (it happens) Due to mental health issues a charity wrote to them and asked if under the circumstances they might consider writing the debt. They said no, they offered a payment arrangement.
The account was passed to an agency, and there were two entries shown on my credit file, Next and the DCA.
I did not pay the agreed amount, for whatever reason I cannot recall. The default was placed back on the file, but at a different date, not the original.
I contacted them and they agreed to remove it and I have been paying ever since.
My health improved and I still had two entries on my file, despite many attempts it was only removed a month ago.
Next then contact me today to tell me that the arrangement has ended and they want more money or they will default me. There argument is that it is better to have a default than a payment plan shown. That the entry relating to the arrangement stays on the credit file until the debt is paid off.
I really do not want another default, because next has changed their guidelines. I have no debt and the default, dropping off next year.
I was diagnosed with BI Polar and most companies have been amazin, Next however is different.
ANy advice please

[nemesis45]

Re: Help with Next retail and duplicate entries

Hi all,

Just after some advice, I will keep it brief.
I had a next account, in 2009 due to serious health issues I defaulted (it happens) Due to mental health issues a charity wrote to them and asked if under the circumstances they might consider writing the debt. They said no, they offered a payment arrangement.
The account was passed to an agency, and there were two entries shown on my credit file, Next and the DCA.
I did not pay the agreed amount, for whatever reason I cannot recall. The default was placed back on the file, but at a different date, not the original.
I contacted them and they agreed to remove it and I have been paying ever since.
My health improved and I still had two entries on my file, despite many attempts it was only removed a month ago.
Next then contact me today to tell me that the arrangement has ended and they want more money or they will default me. There argument is that it is better to have a default than a payment plan shown. That the entry relating to the arrangement stays on the credit file until the debt is paid off.
I really do not want another default, because next has changed their guidelines. I have no debt and the default, dropping off next year.
I was diagnosed with BI Polar and most companies have been amazin, Next however is different.
ANy advice please

Hi welcome to LB

A debt can only be defaulted once by the original creditor, debt collection agency or a debt purchaser
Cannot default it again

It sounds as if Next defaulted the account then changed the entry to an arrangement to pay is that correct?

You say an entry next to the DCA this the entry removed?
How much is still outstanding? Are you receiving statements from next?

nem

[Debt Camel]

Re: Help with Next retail and duplicate entries

I have no debt and the default, dropping off next year.

I am confused. you said the default has been removed. IS it still showing.

Also you clearly do have a debt remaining.

Could you tell us exactly what is showing NOW on your credit file under next? And under the DCA (who is it by the way?)?

If next have sold the debt to a DCA, they should not be contacting you about it.

If they have just passed it to a DCA for collection, then they can still contact you but the debt shouldn't show under the DCA.

[stephen22]

Re: Help with Next retail and duplicate entries

Hi

The account was defaulted by next in 2009. When I checked my credit file, I got in touch with them in late 2012 and set up the arrangement. They took the default and placed a marker on my credit file showing a payment plan was in place.
The DCA have now removed their default, but for a long time there were two for the same debt.
I have no contact with Next apart from today when they emailed me to say that the arrangement was over and if I did not pay more they would default the account again, starting with the current date, which is confusing me.
I have not signed anything and there has been no contact from them at all, there is about 900 remaining.
I found an old credit file wherer the original defaulted date was in 2009.
I have no issues paying, it is the re-application of the default.

[stephen22]

Re: Help with Next retail and duplicate entries

Hi Debt Camel

The duplicate default has been removed from TTISPC, but it has been there alongside next. My credit file is showing payment arrangement(this being quite recent marker). The original default should have ended this month.
I contacted Next, they have now said the folllowing..It might make things clearer.

I have acknowledged the debt, it was the default that was my main issue. I had no contact with Next and the following has got me quite angry.

If I had known that this would happen, I would have just left the debt to drop off, instead of offering to pay. The bits in red had me confused as i thought this was what i had agreed to.

To reiterate, details of the default registered by Next were removed from your credit files some time ago. And having checked with the Credit Reference Agencies today, the one registered by TTISPC has also been removed. But TTISPC were responsible for the account, and the credit file entries attached to it, so if you do have concerns about the default notice issued by them, I’m afraid that you’ll need to contact them directly.

As I’ve mentioned before, we have a duty to accurately record how an account has been run. This forms part of our contract with the agencies themselves. And so removing details of a default isn’t something we usually do. But as it was clear that you’d been having a difficult time (because of your health issues), we arranged for this to be done for you as a gesture of goodwill.

So when the account was retrieved from the external agency, we agreed to set up a reduced payment plan for you, to help you get back on your feet. This was requested by Julie Hine, who was acting on your behalf at the time. But details of the arrangement, together with the impact it would have on your credit files, would have been sent to your home address by our Collections Team.

Having said that, although we’ve been able to re-set your agreement to pay £5.00 each month every 6 months for a little while now, I’m afraid that we’re no longer able to do this. Under new guidelines, we can only allow a reduced payment plan to remain in place for a maximum of 12 months.

So if a customer’s circumstances haven’t improved by that time, we now arrange to “default” the account. And set up an agreement to pay (for an amount the customer feels comfortable with). But the account remains with Next, and so won’t be passed to an external collection agency.

We do this because a default only remains on the customer’s credit files for 6 years from the date it’s registered. Whereas the record of a reduced payment plan will remain on there for 6 years after the customer makes their final payment. So it’s beneficial to customers, as their credit files are affected for less time.

Having looked at your account, I can see that, if you continued to make a payment of £5.00 each month, it would take you around 17 years to clear the outstanding balance. So a record of the fact that you’d been in a repayment agreement with us would remain on your credit files for 23 years (until 2038). But if we “defaulted” your account now, and set up an agreement to pay (with no interest or charges), the default would drop-off in 2021, regardless of how long it takes you to clear the outstanding balance.

Because of this, your agreement wasn’t reset in September, meaning that we’re expecting a payment of £51.00 to reach us on the 27^th October.

[Debt Camel]

Re: Help with Next retail and duplicate entries

OK. What Next are saying makes sense, you would be better off with a default not an arrangement to pay on your records.

If the original default had been left there, then it would be dropping off sometime soon after 6 years was up.

What I think you need to do now is send them a letter saying that you have reviewed the Information Commissioner's Rules about default dates and it is clear that the account should have been defaulted when it got to between 3 and 6 months in arrears. So you would like them to add a default to your file dated in 2009.

There is more about this here: http://debtcamel.co.uk/debt-default-date/