Default - reported to Credit Agencies - but in dispute

[Katyknowsbest]

If a credit card agreement is in default but also in dispute thanks to invalid CCA (been to the solicitors and returned back to lender etc), can the lender report the default to Credit Agencies?

I was under the impression that if an account is in dispute they should not be reporting this to credit agencies.

Anyone could point be in the right direction, I'd be grateful.

Thank you

[charitynjw]

Re: Default - reported to Credit Agencies - but in dispute

If a credit card agreement is in default but also in dispute thanks to invalid CCA (been to the solicitors and returned back to lender etc), can the lender report the default to Credit Agencies?

I was under the impression that if an account is in dispute they should not be reporting this to credit agencies.

Anyone could point be in the right direction, I'd be grateful.

Thank you

Hi Katyknowsbest

Has the lender/owner admitted that the alleged debt is unenforceable?

[Katyknowsbest]

Re: Default - reported to Credit Agencies - but in dispute

No they haven't.

It's been to their solicitors (lengthy correspondence), debt collection agencies all of which return it to the lender once they realise it is in dispute and after 2 years since default they have offered a settlement of 50% of the debt.

Thanks

[charitynjw]

Re: Default - reported to Credit Agencies - but in dispute

No they haven't.

It's been to their solicitors (lengthy correspondence), debt collection agencies all of which return it to the lender once they realise it is in dispute and after 2 years since default they have offered a settlement of 50% of the debt.

Thanks

IMHO

Unless the alleged debt is statute-barred or in some other way proven to be irredeemably unenforceable, I would guess that they would be allowed to report it.
As it is in dispute, they must consider that it is still owed. The ICO guideline is that the reporting is fair - the flip-side would probably be argued; can you show that it is unfair?

[nemesis45]

Re: Default - reported to Credit Agencies - but in dispute

IMHO

Unless the alleged debt is statute-barred or in some other way proven to be irredeemably unenforceable, I would guess that they would be allowed to report it.
As it is in dispute, they must consider that it is still owed. The ICO guideline is that the reporting is fair - the flip-side would probably be argued; can you show that it is unfair?

Hello Charity,

Unfortunately a debt being statute barred does not always mean it cannot be reported to CRA files a debt can become Statute Barred before the 6 year " life " of a default has expired and will remain until the 6th anniversary of the default date.

Katyknowsbest.

Disputed or not/ no CCA makes no odds the creditor can continue and should report the conduct of the account to CRA's.

A default can be challenged if the creditor has placed it unreasonably late or for instance the " default sum " ( on an account) was made up SOLELY of charges without which (charges) the account would not have been defaulted. ( source ICO Guidance On Defaults)

nem

[Kati]

Re: Default - reported to Credit Agencies - but in dispute

[MENTION=82479]Nibbler .[/MENTION].. anything to add??

[charitynjw]

Re: Default - reported to Credit Agencies - but in dispute

Hello Charity,

Unfortunately a debt being statute barred does not always mean it cannot be reported to CRA files a debt can become Statute Barred before the 6 year " life " of a default has expired and will remain until the 6th anniversary of the default date.

Thanks, nem

Rotten so&so's; you'd think that the 6 years = the Limitation Act, not LA + extras, wouldn't you?
Seems like they're a law unto themselves!

Katyknowsbest.

Disputed or not/ no CCA makes no odds the creditor can continue and should report the conduct of the account to CRA's.

A default can be challenged if the creditor has placed it unreasonably late or for instance the " default sum " ( on an account) was made up SOLELY of charges without which (charges) the account would not have been defaulted. ( source ICO Guidance On Defaults)

nem

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[nemesis45]

Re: Default - reported to Credit Agencies - but in dispute

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All boils down to the ICO and that they require the credit file entries to be an up to date accurate picture of the conduct of the account.

nem