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Hi,
I'm in the process of trying to sort out my credit score, and well on my way too despite being financially rubbish when I was younger. I have two satisfied defaults on my account. One that will expire at the end of 2017, the other mid-2020.
I have reached out to both to get further information on the account that they hold on me, as I do not recall ever receiving Default Notice for these.
1stCredit have replied to me a few times over the course of the last month, but I feel that the information they are providing isn't correct. I was hoping that some one on here may have more understanding and be able to point me in the right direction of my next steps to take.
My initial email to them reads:
"Dear Sir or Madam,
I am writing to you today in the hope that you can please help me improve my credit score. After recently obtaining a copy of my credit file from Experian I was concerned to note that your company has placed a "Default" notice against my record. This also shows in my record for Callcredit and Equifax. My records show that this account was paid in full & final payment back in July 2015. I do not have a recollection of ever receiving such a notice, and I therefore require you to substantiate this data at your earliest convenience.
- You must supply me with a true copy of the alleged agreement you refer to. This is my right under your obligation to supply a copy of the agreement under the legislation contained within s.78 (1) Consumer Credit Act 1974 (s.77 (1) for fixed sum credit).
- Your obligation also extends to providing a statement of account.
- You must supply me with a signed true and certified copy of the original default notice.
- Any deed of assignment if the debt was sold on.
I would request that this data is provided to myself within the next 28 days, if you are unable to provide this data then I must insist that it is removed from my files as unsubstantiated."
1st Credit responded with:
"Thank you for your email of 4th May 2016 which has been passed to me for reply.
I am sorry to read of your concerns regarding our entry on your credit file. It relates to the overdraft on a First Direct current account provided by HSBC. HSBC have confirmed that the account was opened on 3rd April 2013 and have quoted a default date of 2nd June 2014.
The account was assigned to us on 19th March 2015 and a Notice of Assignment was sent on 27th March 2015. A further copy is attached to this email. The attachment has been password protected for security purposes. The password to open the attachment will be sent to you in a separate email shortly.
Further to your request for a copy of the Deed of Assignment I respectfully refer you to Section 136 of the Law of Property Act 1925 which provides that the debtor is notified of the assignment of the debt in writing and not a copy of the Deed itself.
Once a debt is sold to us HSBC will instruct the credit reference agencies to delete their entry from a customer?s credit file. We will then place an entry to show that the balance is owed to us, and will quote the same account opening date, default date, product type, reference number and balance as HSBC.
I confirm we received your final payment on 31st July 2015 and the account is now paid in full. Our entry on your credit file shows that the default has been fully satisfied and that there is a zero outstanding balance. On behalf of 1st Credit I would like to thank you for the payment you made.
Under the changes in regulation brought into the Consumer Credit Act in February 2011 following the introduction of the EU Credit Directive, no Default Notices are necessary to issue with an overdraft when it has not been paid according to terms. I further advise that guidance provided by the Information Commissioner?s Office state that they expect a lender to keep records that are necessary to show an agreement exists and to support filing a default. In addition they expect a lender to be able to produce evidence to justify a default record they had placed on a credit reference file. To reach a judgement on whether or not data is accurate they consider, amongst other factors:
? Any evidence that exists, even if it is inconclusive.
? The credibility of the data subject.
? The credibility of the lender.
? The reliability of the lender?s internal procedures.
? The existence of other similar complaints about the lender.
The ICO do not state that an inability to provide a copy of a default notice means a default must be removed.
We have nevertheless reverted to HSBC for copies of any documentation issued relating to the default, and will forward this to you once we receive it. We have also requested a copy of the agreement relating to the account which we will also forward once we receive it. Thank you for your patience whilst we wait for these documents to be provided to us."
1stCredit came back today with more information from HSBC...
"We reverted to HSBC for a copy of the default notice issued in respect of the above account. They have now provided us with a copy of the Formal Demand issued on 28th April 2014"
The attached copy from HSBC was a FINAL Demand, rather than Default Notice (no mention of 28 days etc).
Is the above true? Should I request any further documentation? Any advice on the above would be greatly appreciated.
Thanks,
- Gary.
I'm in the process of trying to sort out my credit score, and well on my way too despite being financially rubbish when I was younger. I have two satisfied defaults on my account. One that will expire at the end of 2017, the other mid-2020.
I have reached out to both to get further information on the account that they hold on me, as I do not recall ever receiving Default Notice for these.
1stCredit have replied to me a few times over the course of the last month, but I feel that the information they are providing isn't correct. I was hoping that some one on here may have more understanding and be able to point me in the right direction of my next steps to take.
My initial email to them reads:
"Dear Sir or Madam,
I am writing to you today in the hope that you can please help me improve my credit score. After recently obtaining a copy of my credit file from Experian I was concerned to note that your company has placed a "Default" notice against my record. This also shows in my record for Callcredit and Equifax. My records show that this account was paid in full & final payment back in July 2015. I do not have a recollection of ever receiving such a notice, and I therefore require you to substantiate this data at your earliest convenience.
- You must supply me with a true copy of the alleged agreement you refer to. This is my right under your obligation to supply a copy of the agreement under the legislation contained within s.78 (1) Consumer Credit Act 1974 (s.77 (1) for fixed sum credit).
- Your obligation also extends to providing a statement of account.
- You must supply me with a signed true and certified copy of the original default notice.
- Any deed of assignment if the debt was sold on.
I would request that this data is provided to myself within the next 28 days, if you are unable to provide this data then I must insist that it is removed from my files as unsubstantiated."
1st Credit responded with:
"Thank you for your email of 4th May 2016 which has been passed to me for reply.
I am sorry to read of your concerns regarding our entry on your credit file. It relates to the overdraft on a First Direct current account provided by HSBC. HSBC have confirmed that the account was opened on 3rd April 2013 and have quoted a default date of 2nd June 2014.
The account was assigned to us on 19th March 2015 and a Notice of Assignment was sent on 27th March 2015. A further copy is attached to this email. The attachment has been password protected for security purposes. The password to open the attachment will be sent to you in a separate email shortly.
Further to your request for a copy of the Deed of Assignment I respectfully refer you to Section 136 of the Law of Property Act 1925 which provides that the debtor is notified of the assignment of the debt in writing and not a copy of the Deed itself.
Once a debt is sold to us HSBC will instruct the credit reference agencies to delete their entry from a customer?s credit file. We will then place an entry to show that the balance is owed to us, and will quote the same account opening date, default date, product type, reference number and balance as HSBC.
I confirm we received your final payment on 31st July 2015 and the account is now paid in full. Our entry on your credit file shows that the default has been fully satisfied and that there is a zero outstanding balance. On behalf of 1st Credit I would like to thank you for the payment you made.
Under the changes in regulation brought into the Consumer Credit Act in February 2011 following the introduction of the EU Credit Directive, no Default Notices are necessary to issue with an overdraft when it has not been paid according to terms. I further advise that guidance provided by the Information Commissioner?s Office state that they expect a lender to keep records that are necessary to show an agreement exists and to support filing a default. In addition they expect a lender to be able to produce evidence to justify a default record they had placed on a credit reference file. To reach a judgement on whether or not data is accurate they consider, amongst other factors:
? Any evidence that exists, even if it is inconclusive.
? The credibility of the data subject.
? The credibility of the lender.
? The reliability of the lender?s internal procedures.
? The existence of other similar complaints about the lender.
The ICO do not state that an inability to provide a copy of a default notice means a default must be removed.
We have nevertheless reverted to HSBC for copies of any documentation issued relating to the default, and will forward this to you once we receive it. We have also requested a copy of the agreement relating to the account which we will also forward once we receive it. Thank you for your patience whilst we wait for these documents to be provided to us."
1stCredit came back today with more information from HSBC...
"We reverted to HSBC for a copy of the default notice issued in respect of the above account. They have now provided us with a copy of the Formal Demand issued on 28th April 2014"
The attached copy from HSBC was a FINAL Demand, rather than Default Notice (no mention of 28 days etc).
Is the above true? Should I request any further documentation? Any advice on the above would be greatly appreciated.
Thanks,
- Gary.
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