Debt recording after 6 years...

michelle2801_2

Hi All,

I am not sure if I have this in the correct place but I would like some advice.

I had a loan with the Ulster Bank (Northern Ireland) and had defaulted and it went to a recovery company whom I set a direct debit up with. The direct debit stopped being collected and I never thought anything more of it.

I opened a new account with the Ulster Bank and began banking with them again and kept my bank account in good order so had applied to upgrade from a basic cash to a full current account. However, when I did this I was contacted to say that I should never have been given the account in the first place as there was still outstanding debt i.e. the loan which I had been repaying through the recovery company. I requested that the new account be closed and made arrangements to start to pay the balance of the outstanding debt.

However, the new account was never closed and the account was hit with a £30 charge so it is recorded on my credit file as though I have had an overdue account and a missed payment even though the company admitted it should have been closed and this £30 removed.

I have just come back to wrok from maternity leave and havent kept to the agreement to repay the loan which I know is my own fault.

Ok so this is long winded but....

The outstanding loan in question dates back to 2002 and it now looks like the Ulster Bank are using my new account to reflect the non payments of this old loan. Can they do this? They cant record it on the old loan because it is over 6yrs but are they allowed to use an account that should have been closed to put something against me in my credit report?

I cant see how they can and I think it is unfair (I am trying to rebuild my poor credit history) as I havent defaulted on the new account, missed a payment or anything.

please ask if this doesnt make sense as some advice would be gladly received before I contact them to discuss. I am due to contact them to make my first proper payment as I am back to full pay now and I want to knwo my position to ask them to stop using a new account to reflect the history of the old account.

Thanks,
Mich

never-in-doubt

michelle2801 wrote: »

The outstanding loan in question dates back to 2002 and it now looks like the Ulster Bank are using my new account to reflect the non payments of this old loan. Can they do this? They cant record it on the old loan because it is over 6yrs but are they allowed to use an account that should have been closed to put something against me in my credit report?

No they cannot - once the account is 6yrs old then it is usually removed, its complicated to explain but basically if it was defaulted the entry would be removed after 6yrs from date of default - no matter if you paid the debt or not.

If the account was left open, and not defaulted then the status could show for many years as it keeps updating for 6yrs since it became settled or closed, whichever occurs first.

If the account was dormant and the lender then uses another account status linked to an incorrect account, then the CRA's have a duty to remove the incorrect data so you argue with the CRA directly and explain to them what has happened....

michelle2801 wrote: »

I cant see how they can and I think it is unfair (I am trying to rebuild my poor credit history) as I havent defaulted on the new account, missed a payment or anything.

It is unfair and the lender cannot do link a new account to an older account status thus showing it as live. Each account has its own entry on the CRA's - for instance I have 3 HSBC accounts and each is listed, you can tell by the reference number - usually (with Equifax anyway) the last few numbers of your account is shown to help you match the account.

All you really need is a copy of an old report and a new one showing the differences made to the original account by the lender.... if the account number or such like has been changed then this is wrong! A new entry should have been created.

michelle2801 wrote: »

please ask if this doesnt make sense as some advice would be gladly received before I contact them to discuss. I am due to contact them to make my first proper payment as I am back to full pay now and I want to knwo my position to ask them to stop using a new account to reflect the history of the old account.

Thanks,
Mich

Contact the CRA's - they then contact the bank on your behalf.