Defaults from student days

donnyjoneslondon

Hi all

I just need a bit of advice about removing defaults. I recently signed up to Credit Expert, and no tarnishes appeared and my credit score was 960. I earn a good salary and decided to get a loan to consolidate my existing debts (£2,000 old student overdraft and £3350 credit card). I was refused! I couldn't understand it.

I called Credit Expert and they said I have something showing on my report at an old address. It was my old student digs. So I updated my details with this address and logged on this morning to find I have two defaults on my report :eek:

One of the defaults is settled with Creation Financial (default date 26/09/2005). The other default balance is £738 (but it says the current balance is £1067) with Cabot Financial (default date 21/01/2005).

I know I could wait for the six year mark and they will disappear, but to be honest I would rather try and remove them now. I am trying to get my finances in order and debts paid off so I can start saving for a mortgage.

Is there anyway I can remove these defaults??

Any comments and advice will be greatly appreciated!!!

Thanks in advance!

DarkConvict

You cannot remove defaults if they were lawfully placed. Since they likely sent the paperwork to the old address as that's where the default got registered, you can't tell if a default notice was sent out.

Defaults last for 6 years, whether they are settled or not. Although now you have updated your credit file its possible they have your current address and may get in touch. Cabot is a debt collector so the odds are an old debt has been sold to them.

If you write to them to acknowledge the debt or pay towards the debt, you will reset the 6 year clock for them going statute barred (not payable). Although the date the default comes off your file, 21/02/2011 will always stay the same.

donnyjoneslondon

Thanks for your reply. So even if I left the address when the default was applied, could I ask for proof of the original default letter? I have called Creation and asked for it to be removed. They have told me that it would be a breach of s78 Consumer Credit Act if they remove it.

DarkConvict

You can certainly ask if they sent it, however this would be done by a SAR and costs £10. http://forums.moneysavingexpert.com/showpost.html?p=33791933&postcount=24
Basically when you get a reply you need to check to see if it contains a default notice, as it should do. If it is missing then they either did not send one, or have failed to comply with DPA to send all data they hold on you.

Its an uphill battle, as getting proof they didn't send a letter is hard because, there is an absence of proof that nothing happened.

Whoever is named on the default, is the company that can remove it. Its not in breach to remove a default and it does happen. I.e. Some people can neoigate settlement figures alongside removal of the default as a required term in the settlement. And defaults can be placed in error or unlawfully. It is always a struggle to get them removed if they were placed with a given reason, even if on a technically. Because the default notice is there to give you time to fix the account, if not sent you could argue you could have fixed it. However they could argue since you never gave an up to date address it would have no affect because you would never have received it anyway, whether it was sent or not.

donnyjoneslondon

Thanks for this information. There is a lot on the forums to take in, so your reply has given a basis on which to start absolving the uphill battle!

I will take your advice and do the SAR in respect of the Creation debt.

I thought I might contact Cabot about the unsettled debt and try and negotiate a settlement (with a condition that the default is removed). However, I am worried if they refuse this, the default will start from the date I have corresponded with them. Is it better to try and negotiate with them over the phone?

donnyjoneslondon

Through my research of removing defaults I have come across the 'sympathy strategy'. Does anyone have any experience of this strategy? Do you think it would be a good idea to write to Creation (my settled debt) and ask them to remove the default as a gesture of goodwill, before I proceed to investigate the default's validity?