Default notice on my CRA report. Debt cleared 18 months ago. What to do?

KevinM

I tried to take out a credit card recently and got declined.

Nothing overly major sprang to mind, I simply thought it was a sign of the current financial market.

However, I decided to dig a little deeper and took out a free Credit Expert report, and all my credir listing is green, and listed as Satisficory, except for one loan I cleared 18 months ago, and it shows a balance of £78 and red Default against it.

Now 18 months ago, I had a load with this company, and it had a balance of £1078 left on it. I had decided to clear a lot of my smaller debt of, and had phoned them to offer a one off payment of £1000 to clear the loan.

They accepted this, and I paid the £1000, and thought that would be it.

A few months later I got a letter from them telling me I hadn't made a payment in 3 months and that I had a balance of £78 on my account.

I explained to them the full and final payment offer, and they saw that and appologised and said they would apply that. I asked if this would affect my credit record, and they said it had, but they would sort that too.

I checked my CRA report a coouple of mnths later and noticed that the default from this complany was still on my file. I telephoned them and asked them to organise this to be removed, and they promised they would.

Now, 12 months later, and this is still on my CRA report. So far, I have asked this company 3 times to sort my CRA report, and 3 times they have said they would, yet it is still there.

What would you suggest I do now to get it removed?

Thanks,
Kevin

fermi

Do you have proof in writing of the settlement offer and their agreement to remove the default?

KevinM

The settlement offer wasn't made in writing, it was done verbally on the phone, but I did receive a loan cleared statement from them afterwards.

I have it somewhere. But I will have to dig it out fom some file in the back of some cupboard somewhere in the house.

They do show the loan as cleared on their system, if I phone them, but they just don't seem to be able (or willing) to take that next step and request the default notice be removed from my credit reports (even though they keep telling me they will).

fermi

In that case....

See page 19 onwards of this: http://www.ico.gov.uk/upload/documents/library/data_protection/practical_application/credit_explained_leaflet_2005.pdf

1) Dispute the default through the Credit Reference Agency. They should mark the entry as disputed, and contact the company to query the default.

2) Write yourself directly to the company to complain and dispute the default, stressing that the information they have recorded is factually incorrect, and so that they are in breach of the data protection act. Send by recorded delivery.

That 'belt and braces' approach should get it sorted.

If it doesn't, you will then have evidence that you have tried to get them to correct the information should you need to take the complaint to the ICO (Information Commissioner). Hopefully not needed, but for them to consider any complaint they need proof that you tried and the company failed to take notice.

KevinM

Thanks, I'll do that on Monday.

Out of interest. Could the default on my credit report be a primary reason for my CC application being declined?

Thanks for the help.

Kevin.

DarkConvict

Each creditor scores you differently, i.e. if you applied to Vanquis (i recommend against it) you would probably be accepted. Remember in future, get it all in writing.

But for now follow fermis advice.

fermi

KevinM wrote: »

Out of interest. Could the default on my credit report be a primary reason for my CC application being declined?

Without the default it still might be declined. Who knows? Credit is not as easy as it once was.

All you can really say is a default will seriously harm your ability to get any mainstream credit.

System

Hate to jump in how long do these defaults last ..6 years ???

- and when they come off your credit file who keeps hold of them then ???

I dont belief these things ever vanish ! :mad: