Settled Accounts, UNSETTLED!!

Chris4918

Hi,

I recently had a couple of rather large debts settled by offering a full and final settlement. I used the template letters from this site and all was agreed. However, having just checked my credit report I noticed that a couple of them still say that i owe a large amount of money and have only deducted what I paid (as a settlement) from the full amount that was owed. I received letters from them at the time of paying to say it was settled and my credit report/score would be updated accordingley.

Is there any letters that anyone knows of that i can use to get this rectified? Any other advice is welcome!!!

Thanks

fermi

Not really.

You just write to them with the evidence of the settlement, stating that:

1) You require them to update the records with the credit reference agencies correctly.
2) They have 28 days to do so.
3) If they fail to comply then you will refer the matter to the Information Commissioner and the FOS.

See page 19 onwards of this...

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

For good measure, you can also dispute the information recorded via the Credit Reference Agencies own processes.

DarkConvict

When were they settled, it can take upto 60 days for the report to update. Creditor send the update (30 days), CRA update the report (30 days)

If they are still not settled, follow fermi's advice.

fermi

DarkConvict wrote: »

When were they settled, it can take upto 60 days for the report to update. Creditor send the update (30 days), CRA update the report (30 days)

If they can be bothered, creditors can update the info at an time they please.

The actual CRAs will update the viewable report within 7 days (normally sooner) when they get new info. It's only the 3rd party providers (checkmyfile etc....) that lag up to 30 days behind.

Personally, I would give the creditor a sharp "prod" regardless.

DVardysShadow

Chris4918 wrote: »

Hi,

I recently had a couple of rather large debts settled by offering a full and final settlement. I used the template letters from this site and all was agreed. However, having just checked my credit report I noticed that a couple of them still say that i owe a large amount of money and have only deducted what I paid (as a settlement) from the full amount that was owed. I received letters from them at the time of paying to say it was settled and my credit report/score would be updated accordingley.

Is there any letters that anyone knows of that i can use to get this rectified? Any other advice is welcome!!!

Thanks

What was the actual wording? If it was 'updated accordingly' there is enough ambiguity for them to try it on.

fermi

DVardysShadow wrote: »

What was the actual wording? If it was 'updated accordingly' there is enough ambiguity for them to try it on.

No there isn't.

The ICO states that:

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

Where the lender has accepted as part of a negotiated settlement a payment that is less than the outstanding amount and the customer has agreed as part of the settlement how their credit record will be affected:

In these circumstances, we understand a lender may be reluctant to mark the entry as ‘satisfied’ or ‘settled’. However the entry must record the position adequately, for example, by showing that no further monies are expected and the account was partially paid.

They must at least mark the files a partially settled, but most importantly record that there is no outstanding balance due to the settlement.

I've queried that and had it confirmed directly by the ICO.

PNPSUKNET

did they say it would be marked partially satisfied?

DVardysShadow

fermi wrote: »

No there isn't.

The ICO states that:

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

They must at least mark the files a partially settled, but most importantly record that there is no outstanding balance due to the settlement.

I've queried that and had it confirmed directly by the ICO.

I take your point, but

Where the lender has accepted as part of a negotiated settlement a payment that is less than the outstanding amount and the customer has agreed as part of the settlement how their credit record will be affected:

In these circumstances, we understand a lender may be reluctant to mark the entry as ‘satisfied’ or ‘settled’. However the entry must record the position adequately, for example, by showing that no further monies are expected and the account was partially paid.

what I am getting at is if the OP agreed to 'credit file marked accordingly', the DCA may be exploiting ambiguity - that they would argue debtor is outwith the guidelines.

Please don't shoot me down for this. I am not arguing that it is right, I am just pointing out the scope for this to happen and opening up the situation to see if this is what may have happened.

fermi

DVardysShadow wrote: »

what I am getting at is if the OP agreed to 'credit file marked accordingly', the DCA may be exploiting ambiguity - that they would argue debtor is outwith the guidelines.

Please don't shoot me down for this. I am not arguing that it is right, I am just pointing out the scope for this to happen and opening up the situation to see if this is what may have happened.

And I take your point.

Many of the less scrupulous DCAs/creditors may indeed try to exploit that.

The point I was trying to make was that the ICO is not going to ultimately have any of that, if push comes to shove.

Chris4918

Thank you all for your responses. We had a house unfortunately reposessed which left us with over £42,000 in negative equity. We made a cheeky offer of £7,000 and they came back and said if we give them £8,000 then they would settle the account and amend on our credit files to say 'settled'. As it stands, it still says that we owe over £35,000 and the account has now defaulted. We paid the £8,000 back in May/June 2009 so was a bit shocked when i noticed it was still outstanding and this has of course screwed my credit score up (currently at 311!!!).

I also have a debt management plan with the CCCS and have noticed that one of the creditors (Argos) has marked me down as being 4/5/6 months in arrears even though i have been paying on time every month for the past 4 years. All of the other creditors within the plan have me down as paying on time!

With regards to the 'big one' am i best in writing them a letter and sending a copy of their acceptance letter which states that they would update my credit file, and give them 28 days to do so?

Thanks again all