Default Removal - Help Pls. from STUDIO

[nooralamc]

Read plenty of thread over here, I beleive there is someone out here can help me out.

Story in short
My wife opened Studio account on my Name in 2006 for purchasing Christmas Gifts. (I was aware of this). Was paid regularly since then.
In February 2010 we got separated (now I am living in separate address rented). Managed to sort out all the financial accounts but somehow Studio Account was overlooked by my self.
In July 2010 I received a letter in my new address from a debt collector of Studio regarding miss-payment. Immediately I paid in full and settled the account.
Now went for mortgage happily and was advised to get a credit report. Got it and found there is a default notice against Studio account.
Followed the instruction/examples/ procedures mentioned on sticky notes over here to remove the default notice.
First letter wrote them very polite, explaining the situation and requested them to remove the default notice as a good will gesture.
They replied with a bit rude letter stating that this is your true reflection of your account with us, therefore will not be removed.
So followed the sticky note example (letter 1).

Got reply (below)

Your Ref XXXXXX
Our Ref XXX
28th July 2011
Mr Xxxx Xxxx Xxxxxxxx
<Address>
Dear Mr Xxxxx
Thank you for your recent letter, which has been forwarded to my attention.
In order to obtain a copy of your credit agreement, please forward the statutory fee of £1.00 (I did not sent this so will do with my next letter).
With reference to your request for a copy of the default notice, default notices are produced by our computer systems and we do not retain copies of them. We are not legally obliged to retain a copy of the default notice, or to supply you with a copy of it. We are only required to retain a record of when it was sent, 3rd June 2010. A sample can be provided if required.
There is no deed of assignment as Studio still owns the debt.
Assuring you of our best attention at all times.
Yours Sincerely
Xxxxxx
Customer Liaison Advisor


I want to buy a house near my daughter’s school (she is 5 years old) and stuck in this Default Notice system.

Thanks and regards
NAC
------------------------------- merged -------------------------------
I wrote them back with £1.00 requesting for the agreement paper and original default notice issued to me.

After a week I received a reply stating that now the account has been closed therefore we are not liable to send you agreement paper so your £1.00 will be returned back in form of cheque.
They also enclosed sample default notice issued to me (I never received) not the original.

So can anybody show me the correct path how to remove the default notice from my credit file.
Your help and guidance will be highly appreciated.
Thanks and regards
NAC

[Pinky69]

Re: Default Removal - Help Pls. from STUDIO

They do not have to supply a copy of the Default Notice. They do them on templates and don't keep them. The account should now be marked as "settled". Since they won't remove the default, you could add a Notice of Correction to your credit reports to the effect that this was overlooked during a short period of family difficulty and was paid in full as soon as you realised it had been overlooked. That may help but in today's climate you need a pristine credit record to get credit. Even those who have never had any late payments are finding it difficult to get mortgages and loans. You could get an impaired credit mortgage but the interest rates are much higher. I would speak to a reputable mortgage broker and see what they can do for you. Studio must send you a copy of the agreement on request under the CCA 1974. You should get the agreement, the Terms and Conditions and a statement of account.

[Caspar]

Re: Default Removal - Help Pls. from STUDIO

Studio is part of Express Gifts Ltd. Registered Office: 2 Gregory Street, Hyde, Cheshire SK14 4TH. I'd be inclined to write to the Chief Executive Officer at the above address and explain the situation. At this stage I'd take the attitude of you realise they are legally allowed to do this but, because of extremely difficult personal circumstances...........

You can always be less pleasant later if you need to be.

[nooralamc]

Re: Default Removal - Help Pls. from STUDIO

@Pinky,
It does say settled and left note also as you have mentioned but that does not make any difference at all. I did speak to a mortgage advisor he said to wait 6 months then apply again.

@Casper,
Will write again at your given address. Cheers mate.
Much appreciated.

Thanks
NAC

[calamity jane]

Re: Default Removal - Help Pls. from STUDIO

Their duty to supply a copy of the Credit Agreement no longer applies if all monies due on the account has been paid.

Section 110 Subsection (2) states

(2)Subsection (1) does not apply to—

(a)a non-commercial agreement, or

(b)an agreement under which no sum is, or will or may become, payable by the
debtor or hirer, or

(c)a request made less than one month after a previous request under subsection (1) relating to the same agreement was complied with.


CJ

[Pinky69]

Re: Default Removal - Help Pls. from STUDIO

I stand corrected - thank you. The reason the adviser told you to wait is that credit reports usually mark each month that payment has been late. You will have to wait until all these late payment marks have disappeared with time as they disappear one by one with a new month.

[CleverClogs]

Re: Default Removal - Help Pls. from STUDIO

In July 2010 I received a letter in my new address from a debt collector of Studio regarding miss-payment. Immediately I paid in full and settled the account.
Now went for mortgage happily and was advised to get a credit report. Got it and found there is a default notice against Studio account.
Followed the instruction/examples/ procedures mentioned on sticky notes over here to remove the default notice.
First letter wrote them very polite, explaining the situation and requested them to remove the default notice as a good will gesture.
They replied with a bit rude letter stating that this is your true reflection of your account with us, therefore will not be removed.

As the account was paid in full, their assertion that the default is a true reflection of the account is quite wrong.

The Data Protection Act 1998 requires that data held about oneself should comply with the Data Protection Principles set out in schedule 1 (link) of that Act; Express Gifts Ltd (for it is they) seems to have failed to comply with principle 4 - that data be kept up to date - as well as possibly keeping data longer than necessary (violation of principle 5) and ignoring your rights in respect of those data (violation of principle 6).

You may wish to remind them of their obligations.

[Nibbler]

Re: Default Removal - Help Pls. from STUDIO

As the account was paid in full, their assertion that the default is a true reflection of the account is quite wrong.

Why?

They did default the account. Recording that is accurate.

Paying in full 5 or 6 months later does nothing to change that.

[CleverClogs]

Re: Default Removal - Help Pls. from STUDIO

Why?

They did default the account. Recording that is accurate.

Paying in full 5 or 6 months later does nothing to change that.

From what was posted above, it would appear that Express Gifts Limited did not, however, record that the debt had been fully settled.

[Nibbler]

Re: Default Removal - Help Pls. from STUDIO

From what was posted above, it would appear that Express Gifts Limited did not, however, record that the debt had been fully settled.

I don't see anything to lead to that conclusion.

In fact quite the opposite.

The account should now be marked as "settled".

@Pinky,
It does say settled

[CleverClogs]

Re: Default Removal - Help Pls. from STUDIO

From what was posted above, it would appear that Express Gifts Limited did not, however, record that the debt had been fully settled.

I don't see anything to lead to that conclusion.

In fact quite the opposite.

Then you seem to need to read more carefully.

From the original posting, with the relevant clause emphasised; please note that the following letters were sent after the debt had been paid in full:

First letter wrote them very polite, explaining the situation and requested them to remove the default notice as a good will gesture.
They replied with a bit rude letter stating that this is your true reflection of your account with us, therefore will not be removed.
So followed the sticky note example (letter 1).

Got reply (below)

Your Ref XXXXXX
Our Ref XXX
28th July 2011
Mr Xxxx Xxxx Xxxxxxxx
<Address>

Dear Mr Xxxxx

Thank you for your recent letter, which has been forwarded to my attention.
In order to obtain a copy of your credit agreement, please forward the statutory fee of £1.00 (I did not sent this so will do with my next letter).
With reference to your request for a copy of the default notice, default notices are produced by our computer systems and we do not retain copies of them. We are not legally obliged to retain a copy of the default notice, or to supply you with a copy of it. We are only required to retain a record of when it was sent, 3rd June 2010. A sample can be provided if required.
There is no deed of assignment as Studio still owns the debt.
Assuring you of our best attention at all times.
Yours Sincerely
Xxxxxx
Customer Liaison Advisor

The assertion that the company still owns or owned the debt does appear to indicate that the company had not marked the debt as having been fully settled, as it is patently impossible to own a debt that no longer exists.

[Nibbler]

Re: Default Removal - Help Pls. from STUDIO

Then you seem to need to read more carefully.

From the original posting, with the relevant clause emphasised; please note that the following letters were sent after the debt had been paid in full:

The assertion that the company still owns or owned the debt does appear to indicate that the company had not marked the debt as having been fully settled, as it is patently impossible to own a debt that no longer exists.

You are making no sense whatsoever. :crazy:

There is nothing in that to say that the debt is not marked as "settled".

In fact, nooralamc confirmed earlier in this thread that it had been marked as settled.

[CleverClogs]

Re: Default Removal - Help Pls. from STUDIO

How a settled debt be owned by anyone?

[Nibbler]

Re: Default Removal - Help Pls. from STUDIO

How a settled debt be owned by anyone?

The creditor still owns and has responsibility for the account. It just happens to be settled.

That includes the duty to keep the credit reference agency records up to date.

What matters is that the record with the credit reference agency is marked as settled.

It is.

Regardless. How they have worded that letter is utterly irrelevant. If your whole argument is based on that inconsequential choice of words, then you really are barking up the wrong tree and do not understand what the actual issue is.

The debt is marked as settled on the CRFs (if the OP is to be believed). That is all that matters. Silly word games don't change that.

[The Debt Star]

Re: Default Removal - Help Pls. from STUDIO

It would be helpful if the OP could post up here a screen shot of BOTH his Experian and Equifax credit file relating to the account in question (obviously edit out the personal info and just leave in the relevant info).

I believe that although it may be filed as "settled" it will also be recorded as Defaulted in the past as well. That is my experience with Equifax, where a credit company have recently purchased an old defaulted credit card account and marked it as "settled." It still says "Default" in the payment history and this, in itself, even with a settled account is enough to have a mortgage app declined in the present economic climate.

The OP may need to go the FOS ultimately on this omne as the Default seems UNFAIR as opposed to technically inaccurate. The FOS will look at removing unfair defaults as I have discovered. The fact that the OP will have to wait 'til 2016 for this to drop off his record is pertinent and I can fully understand his concerns.