Default added to Credit File 4 years after failed payment

[MLPA2168]

Hello,

I took out a payday loan in 2009 and did not pay it back. The loan company defaulted the account and sent a default notice to me (March 2009).

They have only just registered the default with the Credit Reference Agency, nearly 4 years after the account was defaulted!! Can they do this? I thought there would be some time limit to registering the entry with the CRA's?

Kind Regards

Matt

[FlamingParrot]

Re: Default added to Credit File 4 years after failed payment

See below from the ICO guidelines, basically the default should be recorded between 3 and 6 months after your missed payment:

Although there will be some flexibility in the definition of a breakdown, we believe there should be general rules for the minimum period of arrears which should exist before a default can be filed. Equally there should be a maximum period after which, if anything is to be recorded with a credit reference agency, a default must be filed. The following are in line with the practices currently adopted by most lenders.

• Accounts should not be routinely filed as being in default where full payments or those due under a rescheduled agreement are fewer than three consecutive months in arrears.
• Accounts should normally be filed as being in default where those payments due have not been received for six months.

This time framework only relates to filing defaults. It does not affect the lenders’ ability to continue to report accurately on the extent of arrears using monthly status codes. We recognise that may not always be appropriate for products which advance credit over either a very short or very long-term.

[MLPA2168]

Re: Default added to Credit File 4 years after failed payment

Thanks, I've just been chatting to someone on a different site and they say although there are these guidelines, they are not enforcable. So sounds like I have no recourse and I am stuck with the default :-(

[FlamingParrot]

Re: Default added to Credit File 4 years after failed payment

Thanks, I've just been chatting to someone on a different site and they say although there are these guidelines, they are not enforcable. So sounds like I have no recourse and I am stuck with the default :-(

Yes, I'm familiar with the site in question and have seen your thread on there, they are indeed guidelines. Did you get a default notice in 2009? As it was a payday loan, you probably wouldn't have got one. If the PDL in question has left you alone all these years, you wouldn't want to be making waves just 2 years before it being statute barred. :grin:

[MIKE770]

Re: Default added to Credit File 4 years after failed payment

Yes, I'm familiar with the site in question and have seen your thread on there, they are indeed guidelines. Did you get a default notice in 2009? As it was a payday loan, you probably wouldn't have got one. If the PDL in question has left you alone all these years, you wouldn't want to be making waves just 2 years before it being statute barred. :grin:

I would go back to sleep and let it lie.

[basa48]

Re: Default added to Credit File 4 years after failed payment

Is that the only adverse marker on your CRA file?

I ask because ANY adverse markers, be they late or missed payments, agreements to pay (reduced amounts) or defaults etc on ANY credit entry will make it difficult to obtain further credit anyway.

I'm afraid there is little you can do. As has been suggested - 'let it lie'.