Barclays Loan - Should have defaulted - Showing as OK

[Ben86]

Hello all,

I hope that someone can help me.

Back in 2008 a unsecured loan with Barclays was taken out for £4,571 to cover exisiting debts. Unfortuantely, I lost my job and fell behind on payments. The last payment to Barclays was made on 1st September 2008. After this point I looked in to a debt management plan and asked for the loan to form part of this. No payments were ever made through this agreement to Barclays as I was unable to supply a copy of the agreement to the DMC. All other Debt were cleared

I have recently looked at my credit file as I am now in a much better position and I am looking to potentially buy a house. This all hinges on some of the nasties falling off my file in the next year. Unfortuanetly, I have discovered that Barclays have not defaulted the loan but put it in to 1, 2, 3, 4, 5, 6 status, left it at a 6 for 1 year 5 months, put it back to OK status, then dormant (DT) and recently back to OK. Picture attached.

My questions are, shouldnt this have defaulted in April 2009? 6 months after the payments stopped and secondly, how can they report the account as OK without payment. This would mean it become Status Barred in April this year?

My worry is my credit exposure... If I am buying a house, an unsecured loan for nearly 5k is going to reduce the amount I can borrow and if they all of a sudden decide (as I have seen elsewhere) to issue a default, it will push my dreams of home ownership back years (I'm no spring chicken).

What can I do?

Thanks

[nemesis45]

Re: Barclays Loan - Should have defaulted - Showing as OK

Hello Ben Welcome,
Please edit the CRA entry it has your full name on it!

I agree this is at first sight very unfair.
There is a point that trouble me on the "agreement" with Barclays in regard to the DMP could be regarded as an Admission of liability which reset the 6 year clock of the Limitations Act 1980.

You need to make a Formal Complaint to The Data Controller at Barclays head office laying out clearly and concisely why you feel the entry is unfair and what you would like Barclays to do about it

Barclays have up to 56 days to fully investigate and respond to the complaint, if the response is unacceptable you can then complain to the Information Commissioners Office.

nem

[Amethyst]

Re: Barclays Loan - Should have defaulted - Showing as OK

edited credit file screenshot and reuploaded

[Ben86]

Re: Barclays Loan - Should have defaulted - Showing as OK

Thank you both.

Unfortuantley for the DMC they did not have any of the information (account number) etc. that they would have need to act on my behalf. Are they able to keep the loan at a status 6 for that long and how can they be reporting as OK when I have had no contact since Septmber 2008.

A credit card with them defaulted in May 2010 which formed part of the plan and activitly paid until I stopped the debt plan in November 2009 and paid creditors directly to avoid fees. Surely the loan should have followed suit if this was considered part of the plan (probably much earlier as they never received anything from the DMC)?

[nemesis45]

Re: Barclays Loan - Should have defaulted - Showing as OK

From what you say Ben it appears that the loan was not serviced by the DMP, so Barclays it seems has carried on reporting as if the DMP was active.

Formal Complaint to Data Controller is the way forward.

[Ben86]

Re: Barclays Loan - Should have defaulted - Showing as OK

I will contact the Data Controller and find out what I can do. I do not at this point want to admit liability as if I am correct the debt is close to SB... Any suggestions on how to go about this?

[nemesis45]

Re: Barclays Loan - Should have defaulted - Showing as OK

The contact made with Barclays re the DMP may have reset the SB clock.
Your contact with Barclays now for information should be in writing and
should clearly state that the letter is not an acknowledge of any liability.
Let's see what the Formal Complaint brings forth.

nem

[Ben86]

Re: Barclays Loan - Should have defaulted - Showing as OK

Good evening all,

A little update; I've not yet contact Barclays as I want to ensure I armed with all the relevant information. Looking back through my bank records I can see that the DMP started in Nov 2008 and continued until the Standing Order was cancelled in May 2009. The company I used was called Debt Free Helpline. Looking back at my CR I can see that my loan stayed at a 6 status from April 2009 to September 2010 before reverting to OK. At the time it reverts to OK it immediately increases the debt by £500.

Am I right to claim that the loan must be status barred from April 2015 (6 years from first 6 status code). Sorry to sound repetitive, I need to know that I have some chance of a SB been in place before shedding light on this situation.

Thank you all so far.

Ben

[nemesis45]

Re: Barclays Loan - Should have defaulted - Showing as OK

If there has been no payment or written acknowledgment since the date the standing order was stopped the debt becomes statute barred 6 years from that date.

In my opinion a default should have been placed at the start of the DMP or at the latest when the SO was can cancelled .

nem