Default advice...

alone10

Hi guys,
Been a fan of this site for some years, but only just registered as all my previous answers have been answered via other peoples posts.!

I'm starting a family with my new wife and want to get a new car and house, but my credit file isn't up too much. I need to build it up.

What is currently marring my file is a Natwest mastercard which I owe £487 from 3 years ago. I know I was foolish to leave it but I was on my gap year and had no money coming into my UK bank account. The debt now belongs to Moorcroft Debt Recovery and have offered a discount if I pay it off. They haven't specified how much.

What I need to know is, how to get that default off my file! If I pay them will it show on my file as settled? Or will it vanish completely? Or do I pay Moorcroft and then get in touch with Natwest and ask them to take it off?

Also if I am to pay off Moorcroft, how much do I offer them as I know they buy these debts for literally fractions of the original amount.?

Please advise guys.!

-alone10

Its-A-New-Age-Thing

alone10 wrote: »

Hi guys,
Been a fan of this site for some years, but only just registered as all my previous answers have been answered via other peoples posts.!

I'm starting a family with my new wife and want to get a new car and house, but my credit file isn't up too much. I need to build it up.

What is currently marring my file is a Natwest mastercard which I owe £487 from 3 years ago. I know I was foolish to leave it but I was on my gap year and had no money coming into my UK bank account. The debt now belongs to Moorcroft Debt Recovery and have offered a discount if I pay it off. They haven't specified how much.

What I need to know is, how to get that default off my file! If I pay them will it show on my file as settled? Or will it vanish completely? Or do I pay Moorcroft and then get in touch with Natwest and ask them to take it off?

Also if I am to pay off Moorcroft, how much do I offer them as I know they buy these debts for literally fractions of the original amount.?

Please advise guys.!

-alone10

i may be wrong but you may be STUCK with it for its 6 year duration (im sure ill be corrected if i am though )

it may be possible to enter negotiations along the lines " i am prepared to pay this debt on the CONDITION that it is REMOVED from my credit file with IMMEDIATE effect"

alone10

anyone else got any advice? come on guys.!

NorthernLas

A default will stay on your credit file for 6 years. If you pay up it will be marked as settled but will not be removed (because it was applied correctly).

The following link is for a national debline factsheet on F&F http://www.nationaldebtline.co.uk/england_wales/factsheet.php?page=24_full_and_final_settlement_offers.

Have you paid them anything to this debt? If not, first I would ask them to prove you are liable for the debt (see the national debtline website letters section) because this will give you information as to whether they have bought the debt or whether they are working for the bank.

They might accept a lower F&F if they have bought it

alone10

Thanks Northernlas,
I have been reading a lot online, forums ect. on defaults. Apparently if they are small amounts under £500 you can ask the creditor as a gesture of goodwill to have it removed. Obviously you would have to lay it on thick, but from this article it sounds promising.

I can't post links yet as I'm a new user but google "learnmoney credit-file small-defaults"

So.. I phoned Natwest card services (out of curiosity and to see what the chances were) and spoke to a very helpful girl about just this. She said they do actually remove a lot of defaults for customers who still bank with them upon request if they send a letter stating the impact the default has on their lives ect.. apparently it's not uncommon for Natwest to remove these. Interesting.! :T

-Alone10

K1RST1E_2

Hi,

I have 3 defaults on my credit file, all under £500 and they will not remove them. I have gone through their internal complaints procedures, independant adjudicators and the ICO but to no avail.

The first one is with OUSBA. It was for £180 after a payment arrangement I had set up wasn't done correctly so I was none the wiser until a default appeared on my credit report. It was repaid as soon as I noticed it but shows as satisfied and they will not budge.

The second one is with Redcats. It is for £280 after trying my luck with the unsigned CCA to have the debt written off ... and it worked! Only they registered a default against me without issuing the notice. Apparently, they don't have to issue a notice to register the default with the CRA's. They just can't chase you for payment etc. I have tried negotiating with them. E.g. I'll pay what I owe if the default is removed but they have said they can't remove it as it is an accurate report; I never made the payments.

The third one is just recently for Littlewoods. It is for £111 for the same reason above. I am still awaiting their response to my complaint.

Having said all of that though, I checked my credit score on Experian earlier today and considering these defaults were placed last summer, in June my credit score was 314 but today is 586. I'm bewildered as to how it has shot up given the defaults, not that I am complaining or anything.

I really do wish you the best of luck in getting it removed. The only thing I can suggest is if you can catch them out on the accuracy. If you made the payments and can prove it, you have a good shot.

Kirstie.

Hannah_10

There's a reason we say don't phone. Your hopes are up now and if they get dashed then they do.

Have a look at that Moorcroft letter, does it say "we have been instructed" or does it have a "client reference" or does it say anywhere about "our client"? If so Nat West still own it. Offer Moorcroft 80% F&F using National Debtline's template letter, with default removal as a condition of settlement.

If you can't see any evidence Nat West still own it, open negotiations on a 60% offer with default removal a condition. The worst they can say is no.

alone10

Hannah_10 wrote: »

There's a reason we say don't phone. Your hopes are up now and if they get dashed then they do.

Have a look at that Moorcroft letter, does it say "we have been instructed" or does it have a "client reference" or does it say anywhere about "our client"? If so Nat West still own it. Offer Moorcroft 80% F&F using National Debtline's template letter, with default removal as a condition of settlement.

If you can't see any evidence Nat West still own it, open negotiations on a 60% offer with default removal a condition. The worst they can say is no.

Hi Hannah,
Yes the letter has both a client letter and they refer to "our client" So I can assume Natwest still owns it.

So you think settling under the condition that they will remove the default might work?

Can anyone confirm this? Has anyone negotiated the removal of a default?

Thanks,
Alone10

alone10

K1RST1E wrote: »

Hi,

I have 3 defaults on my credit file, all under £500 and they will not remove them. I have gone through their internal complaints procedures, independant adjudicators and the ICO but to no avail.

The first one is with OUSBA. It was for £180 after a payment arrangement I had set up wasn't done correctly so I was none the wiser until a default appeared on my credit report. It was repaid as soon as I noticed it but shows as satisfied and they will not budge.

The second one is with Redcats. It is for £280 after trying my luck with the unsigned CCA to have the debt written off ... and it worked! Only they registered a default against me without issuing the notice. Apparently, they don't have to issue a notice to register the default with the CRA's. They just can't chase you for payment etc. I have tried negotiating with them. E.g. I'll pay what I owe if the default is removed but they have said they can't remove it as it is an accurate report; I never made the payments.

The third one is just recently for Littlewoods. It is for £111 for the same reason above. I am still awaiting their response to my complaint.

Having said all of that though, I checked my credit score on Experian earlier today and considering these defaults were placed last summer, in June my credit score was 314 but today is 586. I'm bewildered as to how it has shot up given the defaults, not that I am complaining or anything.

I really do wish you the best of luck in getting it removed. The only thing I can suggest is if you can catch them out on the accuracy. If you made the payments and can prove it, you have a good shot.

Kirstie.

Hi Kirstie,
Thanks for the info.. you mention they won't remove it as it's an "accurate report". I'm not sure what this means.. how could I catch them out on an inaccurate report?

Thanks
Alone10

alone10

I also hear if I ask the Natwest for a copy of their original default notice and the can't provide it, then they are obliged by law to remove it.

Anyone tried this?

K1RST1E_2

Hi,

When I and they say an accurate report, it means that you didn't make the payments as set out in your agreement. If you can prove that you did or have some other means of catching them out, e.g. you agreed to freeze payments for a short time due to financial difficulties etc. then this would be a good ground for you to challenge them. I also did the same as what you are talking about; ask them to provide a copy of the default notice and if they can't, by law they have to remove it. This doesn't work either as the default notice and the Consumer Credit Act doesn't mean that the creditor has to send you one before they can place a default against you. It just stops them from being able to enforce and chase payment. There is a lot of 'hearsay' around the internet in relation to defaults and default notices but what I am telling you is from experience.

By all means, you can try it ... you've got nothing to lose!