Query re Registering defaults

ShoeCrazy

Hi,

Can anyone tell me how long a company has to register a default? My fiance has a default showing on his credit report for a PAYG mobile he had back in 2005 for a couple of years. The 'debt' has been passed on to a company called Link Financial. He has never received a letter or phone call from the mobile phone company regarding any payments due, it has only come to light now as we're applying for a mortgage. He has called Link Financial & paid the money owed (about £20!) but it's now just showing as a 'settled default' We've spoken to our financial adviser who is under the impression that defaults must be registered within a certain period of time - is that correct?

Many thanks everyone!

PARIS_5000

There is no credit involved with as Pay as you go phone so how can they registered a default.

MrsTinks

PARIS_5000 wrote: »

There is no credit involved with as Pay as you go phone so how can they registered a default.

failing to pay for the handset? bounced payment from paying over the phone?

I'm not aware of any time limits to entering a default on an account other than the 6 year one for statute of limitations - if however you find evidence to the contrary I'd love to see it - could help hundreds if not thousands of people

fermi

MrsTine wrote: »

I'm not aware of any time limits to entering a default on an account other than the 6 year one for statute of limitations - if however you find evidence to the contrary I'd love to see it - could help hundreds if not thousands of people

Here you go...........

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.

Plus this is also handy to know......

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.