1st credit default help please

morph2008

hi all. i used to have a credit card with lloyds tsb which i defaulted on as it was a time in my life when i was being offered cards and loans and i stupidly took them, maxed tehm and then realised that i couldnt afford to pay. anyway that was a long while ago. i eventually arranged for a loan to consolidate all my debts, one of which was the credit card and to my knowledge this was paid in full. i then recieved a letter from first credit about 3 months ago saying that i owed 96.88 and they wanted immediate payment or court action etc. i phoned them and said that i did not owe the money and they said i should either pay or face court. i told them that i would look into the debt. i checked my credit score with experian and they have added a default onto my account. i requested a copy of the agreement and they told me over the phone that they had requested it but lloyds could not provide them with it. they said that as i apparantly addmitted liabilty in 2004 by paying off (what they say) was part of the debt and as such will not remove the default from my account which means that i have a crap credit rating again through (this time) no fault of my own. any suggestions please

GeorgeUK

The only way i can see you resolving this is to either request a copy of the credit agreement (CCA - cost £1) - if they are unable to produce a copy then the debt is unenforcable, but extremely difficult to get the default removed even though it can be argued that the Data Protection Act has been breached as they did not have your permission (from the CCA) to share your details with a 3rd party. If however a copy of the CCA is provided then you're struggling unless all the prescribed terms are not there (APR, limit, repayment method etc)

An alternative is to do a subject access request (SAR - cost £10) to the bank. You will receive all documentation (including the CCA) as well as account transactions so you can see if the account was paid off or not and where this amount may have come from. Also, as you have a list of all transaction for the past 6 years, you may be able to reclaim bank charges (which would also put the account into dispute).

morph2008

i tried to get a cca but they told me that the bank didnt have a copy. they also said that the debt was unenforceable but the default would remain on my file. would it make any diference if i just went ahead and paid the balance regardless of wether or not i owe them?

morph2008

does anyone know the answer to the above question please?

GeorgeUK

If you paid the balance, they'd take the money and you'd still have the default on your account.

Did you ever receive the default notice? Was the default from the bank or the DCA?

shinyhead

I know that they've told you over the phone that there's no CCA, but do you have it in writing?

If not then I suggest you do as George has suggested by sending off the template CCA request letter and enclosing a PO for £1. Remember DON'T sign the letter- and send it recorded delivery. They then have 12+2 days to respond. Obviously keep a copy of your letter and then print out the letter tracking from the post office's online tracking system.

Once the time has elapsed and they either reply confirming they don't have one or simply don't reply at all then you may want to send the follow-up letter that's available here (somewhere!) I think in that it demands that any defaults are removed. You can also send a copy of your correspondence to the CRA and request that it be noted if they don't remove it.

morph2008

The default is from the DCA. i sent my £1 about 4 weeks ago and heard nothing so i rang them yesterday and they told me that they were unable to get the CCA from lloyds as the debt was too old

GeorgeUK

They are required by law to provide a copy of the CCA within 12+2 working days, otherwise the debt is unenforcable. The only reason your information can be shared with the credit reference agencies is because you gave your permission for this in the agreement - which the DCA can't provide so how do the agencies know your permission was given?

GeorgeUK

You sent the original CCA request with payment - now that they have not provided it, you should send the 12+2 day letter.
http://forums.moneysavingexpert.com/showpost.html?p=11635945&postcount=6

This also states that you are withdrawing your consent for them to share your information with any 3rd party - incase they do find a copy of the CCA.

Did you receive a copy of the default notice - there are certain things that must be on the notice for it to be legally enforcable. If the information is not correct then the default may be void - again, it's just getting them to do something about it that's the hard part.