Advice re default on credit file please x

chickencurry

Hi,
I'm relatively new to all of this but something on my credit file seems a bit off to me. I defaulted on an agreement with Welcome finance in april 2003 but have noticed that the default didn't get put on until april 2006. If this right? Are they allowed to do this? This is the worst thing on my credit file now and I don't think that it should even still be on there?
Any advice gratefully received thanks x :A

fermi

Did you have a payment arrangement with welcome up to that point?

When was any default notice issued, and did you make the payments required in it to "rectify" any breach?

Just trying to work out when you you could fairly have said to have defaulted, as it isn't always as simple as you might think.

chickencurry

Hi,
its difficult to say really. What happened was we wanted to VT the car with had with Welcome as we had paid over the required amount to do so. We phoned them in Oct 2003 and asked how much to pay to VT the car and we were given a sum of £419. We paid the £419 as requested and gave the car back all in a good condition. We then had a letter saying that there was £1600 outstanding still to pay for insurances such as PPI, healthcare and breakdown which we had taken out with the car. I phoned them and said that I wasn't going to pay this as why would I pay for breakdown etc when I didnt have the car anymore and why werent we told about this amount when quering the amount to VT the car? I wrote to them also saying the above and they never got back to me. We would have never VT the car if we knew that we also had to pay another £1600.
I have never paid anything towards this amount since that time but they still saw fit to put it on my credit file in April 2006.
Hope this makes sense? Maybe I was wrong not paying the amount for the insurances but I couldnt understand why we were never told about this outstanding amount at the time? x

fermi

Certainly sounds as if they shouldn't be recording a default dated that late.

Generally, the Information Commissioner (in charge of overseeing CRAs/Data Protection) considers it "unfair" for a creditor to record a default dated later that 6 months after it can fairly be said the you relationship with the creditor has "broken down".

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.

If you believe the default date to be unfair, then you will need to dispute the info.

Back with a link in a sec....

fermi

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

Page 19 onwards......

Headed "Q I have my credit reference file but some of the information is wrong. What can I do?"

chickencurry

Wow, you really are wonderful! x
Just one more question, should I have paid the insurances in your opinion? x

chickencurry

After two ignored letters I have now been on the phone to them and the guy is trying to tell me the default is filed six months after the date the account was settled, not when it first defaulted. I know this is rubbish so I am going to fight this all the way! There is no way the default should have been filed two and a half yrs after I defaulted!

chickencurry

Welcome are such clowns! The guy was trying to scare me telling me that the debt wouldnt drop off my credit file until it was paid and as I was refusing to pay it would never come off! What a complete a**e!