debt collection agencies

shangri_la

Hi everyone
I'm new here and wondered if anyone can help with something? I took out a career development loan a few years ago. Due to a big relationship breakdown and depression, I'm afraid I didn't stay on top of when I was due to start paying it back but I had this September [a year after I finished my course] in mind. I heard nothing from the bank so assumed this must be the case. Therefore I was shocked when my former flatmate forwarded me a letter that had come from a debt collection agency, threatening me with the bailiffs etc unless I paid £8k! Turns out I should've been paying it back from *last* September. I spoke to them immediately and have arranged monthly repayments, but I'm angry that the bank didn't send me any warning letters - and definitely none came. I have moved around a lot in the last couple of years but all the people I've stayed with have been close friends and have been religiously forwarding mail - and I've checked and nothing came to any address. Now I'm paying back much more than I should have been and I'm also assuming this will affect my [previously good] credit record?
Is there anything I can do? I know it's my fault for being disorganised...

DarkConvict

I'm sorry you were going through a rough patch, however the responsibility does still lie with yourself to repay the loan on time. You through it was 12 months after the course, not just when the course finished. 12 months after does sound better as it gives you chance to find a job. However that is not how the loan worked out.

Assuming is the problem, if you were unsure you should have got in touch with the bank. I've made the mistake before, i now never assume and harass the banks/mobile operator customer service agents until everything is sorted.

You credit file is likely to have be serverly affected. 12 months of late/no payment markers will be recorded, and it is possible a default has been placed that will last 6 years. To place a default they do need to send a letter, however mail does get lost in the post, and its possible friends did not forward all mail, mistake do happen. You should have ensured the bank had your current address details each time you moved rather than to rely on forwarding mail between houses.

First thing you can do, is check if damage has actually been done. Either do the free trials for your credit report, or get the £2 postal reports. I think from martins guide you should be able to work out how to do this. http://www.moneysavingexpert.com/loans/credit-rating-credit-score#files

If there is a default, send consider sending a SAR to the bank. http://forums.moneysavingexpert.com/showpost.html?p=33791933&postcount=24
See if they issued a default letter. If not, then challenge the default for been unlawful. If a default notice was sent and lawfully applied, then you will not be getting it removed in all likelyhood.

shangri_la

Thanks. I totally accept it was my responsibility and I know all the things I should have done, yep. I was just finding it hard to stay on top of things at the time. And I really was moving every three or four months so actually leaving my post with just two flats was easier than adding even more new addresses all the time, I thought. I'm pretty sure people have been efficiently forwarding on mail, I would go round to collect it every month. And I check my credit report every month and there's nothing on it, no defaults, which is the odd thing. I'm fine about paying off the debt of course and will endeavour to do so as soon as I can - I'm mainly concerned about my credit record and surprised I got no warnings.

DarkConvict

You don't need to explain yourself here, we try not to judge.

Collecting post every month would not have been enough anyway, a default notice has between 14-28 days to correct the account (clear arrears). Even if they had sent letters it may well have been to late for you to have stopped it by the time you read the letter.

Im surprised your credit report has not been marked. Do you check experian and equilifax?
You know it is cheaper just to pay £2 to each of them, every 3 months or so and get the postal reports.
Sure you are notified of instant changes, but do you need it. if not drop the monthly subscriptions and save some money by getting postal reports.

shangri_la

I am a member of Equifax and that's the one I check. They don't even seem to have a record of me having a loan with this particular bank which is really strange. It is also very odd that there have been no letters - in the past if I've ever missed anything, I've had lots of letters and plenty of warning before anything happened. There really has been nothing. This sort of implies to me that they somehow 'lost' me in their system, and maybe that's why they sold my debt rather than trying to pursue me direct. I wonder what I should do! [other than pay it off, obvs].

DarkConvict

Different creditors report to different credit reference agencies. There is an "old" list of who uses who. Ill try and find it.

I advise you get a £2 report or free online trial from experian.

DarkConvict

Finally found the list, took dozens of searches :P - https://forums.moneysavingexpert.com/discussion/2419785

This shows who uses who.

shangri_la

thanks. I got a small loan from my own bank last month so am assuming I passed their credit check then. It is all most strange. Have no record of any letters from the CDL bank in the last two years. I think I should also do what you suggested and ask for all their documentation.

shangri_la

just saw this one - thanks so much! i honestly think I must somehow have fallen out of the system, hence no letters and nothing on the report. Unless they just haven't been very efficient at updating the agencies. I don't know what this means but I guess all I can do is keep on paying the debt collection place and keep an eye on things.