Satisfied Default - Lowell Financial

Gordon_Hose

Hi guys, this is my first post, so please be gentle! :cool:

To cut a very long story short, I'll stick to the facts, which are:

I had a Capital One CC, back in 2000.
I got into trouble and offered to pay less to Capital One.
They accepted, and I paid the lesser payment for years, and stopped spending on the card.
I went through a rough divorce in 2003, and this card fell off my radar.
I moved home and forgot to tell Capital One.
Last year I received a letter from Lowell Financial stating I owed the sum of £623.
Not knowing, I called Lowell and arranged to pay the debt in two equal installments, which I did, the last one paid in June 2009.
Yesterday I got my credit file from credit expert, which shows a Satisfied Default in the name of Lowell Financial 1 Ltd on 31/10/2006!!

Where do I stand getting this default removed? It is the only default I have on my credit file and has put my credit score to "Fair" and will prevent me from getting a mortgage.

I didn't take the credit out with Lowell, and they bought the debt from Capital One. So I'm confused as to how they have managed to enter a default against me, also when I had agreed to (and stuck to) paying off the debt.

Any help gratefully received.

Gordon_Hose

Bump for the lunchtime crew

GeorgeUK

Not really much you can do about it i'm afraid.
As they bought the debt, they had the right to put a default on your account if you were not paying it.

Hang on.
You broke the agreement in about 2000? If so it is the date that the default took place that should be listed. Not the date that Lowell bought the debt.

A default will be listed on your credit file for 6 years, but the date should be not more than 6 months after the initial default (when the original agreement was broken). If this is not the date they have put on your credit file, Lowell are in breach of the Data Protection Act as they hold and have passed incorrect data to a 3rd party. You should write to them highlighting this error and request that they correct their records and ensure that the credit reference agencies are informed.

fermi

As George says..........

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.

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.