Default query

cate65

URGENT HELP NEEDED.
I recently found a default registered on my credit file which dates april 2006. This was registered by equidebt and I was notified by the coop that a default was to be registered when they transferred an overdraft (dating back to 2004) to this debt collection agency in april 2006. However since august 2004 to the present day I have maintained regular agreed monthly part payments to the coop up and to equidebt. Why did they register a default in 2006 when I had been paying an agreed sum for 2 years before the default was registered?
Thanks in advance
Cate

di3004

cate65 wrote: »

URGENT HELP NEEDED.
I recently found a default registered on my credit file which dates april 2006. This was registered by equidebt and I was notified by the coop that a default was to be registered when they transferred an overdraft (dating back to 2004) to this debt collection agency in april 2006. However since august 2004 to the present day I have maintained regular agreed monthly part payments to the coop up and to equidebt. Why did they register a default in 2006 when I had been paying an agreed sum for 2 years before the default was registered?
Thanks in advance
Cate

Hi Cate65,

Just bumping this thread up for you.
I'm sure someone with knowledge of these issues will post up soon, good luck with this.;)

Di

cate65

Thank you I hope someone here can help me soon!

cate65

Is there anyone who might know the answer to my question on this forum? Maybe I could PM them if I had a recommended expert. I don't suppose:money:is available?!

dancingfairy

Hi Cate - it can be a little slow on a weekend - might be worth coming back tomorrow and bumping it up again - I'm sure someone will know.
Also I am not sure but I'm sure I've read of companies adding defaults at differnet times to the acutal default though I don't know why.
Anyway try not to worry too much and keep checking back and as I said try and bump your self up tomorrow.
df

rog2

Hi cate - it is, unfortunately, quite common for creditors and dcas to register 'defaults' against any debt that is 'outstanding'. If the overdraft was unauthorised then this would fall into that category.
It is, I agree, most unfair and you do have the right to contest it - especially if the payments that you have been making are within those originally agreed.

cate65

Thank you for trying to help me, I appreciate your input. I agree that the default was justified, but it is the date that it was registered that I am contesting. I defaulted and then made part payments starting in 2004. What I am trying to clarify is why, after regular agreed part payment, was the default registered in 2006 when the account was transferred to a collections agency? Surely the default should have been registered in 2004??

rog2

cate65 wrote: »

Thank you for trying to help me, I appreciate your input. I agree that the default was justified, but it is the date that it was registered that I am contesting. I defaulted and then made part payments starting in 2004. What I am trying to clarify is why, after regular agreed part payment, was the default registered in 2006 when the account was transferred to a collections agency? Surely the default should have been registered in 2004??

Please do not misinterpret what I am saying, cate - I am not trying, in any way, to justify the 'default' or how/when it was registered. I, personally, think that the whole credit reference agency 'system' is flawed and that creditors/dcas should justify any entry before it is registered.
At the moment there is, as far as I am aware, no 'time limit' for the registration of defaults.

cate65

I understood defaults were registered after 8 months of not fulfilling contractual agreement. I wish this were true and that they should have registered it in 2004 rather than 2006, then I would not have to wait another 2 years for my credit file to be clear!

fermi

Should in general be registered within 6 months.

From: Technical Guidance Note - Filing defaults with credit reference agencies

Time framework

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.

As for selling it on, the can do that and the default will continue on the files.

But whoever buys it is subject to the same rules.

The ‘sale’ or assignment of debts on defaulted accounts

52 When the rights to a debt are sold to a third party, the lender has to make sure the records with the credit reference agency are accurate, up to date and adequate. If they want information about the debts to continue on the credit reference file they will need to come to an agreement with the purchaser about who is to be responsible for this.

53 If the purchaser agrees to take control of the record, the customer should be informed that the debt has been sold or assigned and to whom. The credit reference agency file should be changed to show the name of the purchaser and that the rights to the debt have been sold or assigned.

The purchaser should then make sure the record is kept up to date including changes to the amount still owed. The purchase should not affect how long the record is kept. It should be removed six years after the default.

I would complain to the DCA, and if they will not play ball then complain to the Information Commissioner.

You may also like to dispute it with the Credit Reference agencies as they may remove it until the info is verified.

For complaining, see page 19 onwards of this factsheet.

http://www.ico.gov.uk/upload/documents/library/data_protection/practical_application/credit_explained_leaflet_2005.pdf

cate65

This is excellent information and just what I need to substantiate my argument. Thank you very much indeed Fermi. I may come back to you, if you don't mind, for further information.