DRO discharged but still have defaults

Blood_Vipre · 16 October 2017 at 8:08PM

A couple of months ago we were told by our landlord that she will be retiring soon and will be selling her properties. She has offered to sell it to us but we don't want it because it's going to cost a lot of money to put right and would rather find somewhere else.

Anyway, we have had two mortgage advisors try and get us a mortgage at five percent on a house we liked, both failed because of my credit history so we were told to save up for 10 percent. Which we have done. Now after going with an advisor that is more local he has told us that we have two defaulted accounts which is having a really bad effect on our score and that is the reason we are being refused.

Problem is, those defaults were subject to a Debt Relief Order which was discharged in 2013 so the defaults should have been marked as settled with a zero balance. We have contacted both companies and they've told us a load of rubbish and won't do anything regardless of what the law says.

Our credit reference agency has told us that they agree with me but need to send the defaulted accounts proof from the Insolvency service. Trouble is we can't get it because my name would have been removed from the register three months AFTER the discharge notice back in 2013.

So now an offer has been accepted and we've been told we can't get a mortgage because to the lenders who check out our report it seems we still owe money but we don't. We are caught in a catch 22 situation with no hope of getting out of it and losing the house that my wife has her heart set on.

How can I get proof to these companies that the DRO has been discharged and the balances wiped if I can't find my name on the DRO register.

This is my first post, I hope someone can help.

sourcrates · 16 October 2017 at 9:55PM

Did you not keep the DRO paperwork ?

Once it’s off the insolvency register it’s gone for good.

Defaults do stay on your file 6 years regardless of debt solution, although they should show as satisfied with a zero balance, yes.

fatbelly · 17 October 2017 at 5:50PM

In addition to the above the date of default should be the date the DRO was granted, or earlier.

Blood_Vipre · 17 October 2017 at 8:30PM

Thanks for your replies.

No I did not get any paperwork. And according to checkmyfile.com these defaulted accounts show differing dates and infomation between call credit and equifax. Call credit shows the default continuing to be added every month since December 2012 and Equifax has no records since the DRO started. Also, these accounts should be closed shouldn`t they, they are still open. Barclaycard has still shown my account as open even though its settled with a credit limit of £2500 (which I can`t use because they won`t let me), but they have left open because they apparantly owe me money!! I`ve contacted them, and told them to keep the money, and close the account which I was told was going to happen.

I`ve since written to the Insolvency Register people and hope to hear from them soon. The only other thing I can do is try and get in touch with the charity that sorted out the DRO for me, and see if they have any documentation.

This is so unfair!!

fatbelly · 17 October 2017 at 11:02PM

The DRO team at Plymouth will be the ones that hold the records.

Of the 3 CRAs, I find Experian usually accurate, Callcredit usually not, and Equifax somewhere in the middle.

What matters with your record is the default date, as that dictates when the record disappears.

sourcrates · 17 October 2017 at 11:53PM

How come you got no paperwork ?

There should of been a raft of it floating your way ?

Very strange.

Blood_Vipre · 18 October 2017 at 6:27PM

I recall getting a letter but I misplaced it. Anyway, I have contacted the charity that looked after me and they have sent me a full copy of the application. I phoned the Insolvency Serviced and the emailed me a copy of the letter. I have printed eveything out and sent it to those creditors.

I have also noticed that these debts were passed on to debt collection agencies, and it is those that have failed to notify the creditors of the discharge. One of them `Impact Collection Services` is an in-house debt collection company of Vanquis Bank, the exact creditor who needs to sort out the problem. The other is BLS Collections, a part of Lloyds TSB who bought the debt from the Halifax.

These collection agencies don`t have websites or email addresses, and BLS has a dodgy address with no such PO BOX or POSTCODE, so if I sent them anything they would not get it.

Somewhere down the line these people are breaking the rules and regulations that their parent companies set down. So, I look forward to hearing from them soon, and if any of the readers of this thread have an email address for the above collection agencies I would be very interested.

fatbelly · 18 October 2017 at 7:10PM

I thought Impact and BLS had both gone now. They date from the time when creditors use to pose as other organisations, sometimes pretending to be solicitors, when collecting debts.

When the FCA came in in 2014, they stamped on this like Roy Keane in a bad mood, and they disappeared overnight.

The debt was always owned by the original creditor, in this case Vanquis and Lloyds Group. It is they who you need to be writing to. If you have the application you have the reference numbers and they can identify the debts from that.

Blood_Vipre · 19 October 2017 at 8:13PM

Finding my information wasn`t a problem for them. Giving my name and my old address and some security information which I was amazed I remembered got my account up on their screen. I`m wondering if a visit to my local Halifax would help move things along faster.

I can`t wait to hear from them though... If I ever will.

DRO discharged but still have defaults

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