Remove default (an account that is almost statute barred) - what to do next?

yhyh_2

Dear All,

I have been reading many useful threads on this forum and would like to ask for some advice on what to do next. My goal is to have default free credit files. Here is a short summary of what happened.

1. A default (£150) registered in 2007 by Aktiv Capital regarding a store card account opened in 2006.

2. There was no payment towards it because I was completely unaware of the store card. The account will be statute barred in 2012.

3. I found out about the default in 2009 and sent “I do not acknowledge the debt” letter to Aktiv. They sent me the credit agreement with my signature but admitted that they cannot provide the original default notice.

4. They refused to remove the default and haven’t contact me for almost two years and all the sudden they started to call my mobile 3 times a week this month. I moved not long ago and they don’t have my current address.

I have two options:
1) Option 1: Contact them and Settle the account. My concern is that all settled account will remain in the file for 6 years; hence my default won’t be gone for another 6 years unless they agree to remove them.

2) Option 2: Wait for the account to become statute barred next year. The default registered in 2007 will fall off the file in 2 years time. All I need to do is to change my number as they don’t have my current address.
However my concern is: the default registered in 2007 was updated in 2009 after I contacted them. Experian considers it as one default but on Equifax it shows as 2 defaults. Does this mean the defaults on Equifax won’t be gone for another 4 years? And what if they register new default after the account is statute barred?

I was never aware of the store card because I was told it’s a free membership card I signed for and I was stupid enough to trust the shop assistance not to check anything before I signed it. She also put in the wrong address and that is why I never received anything from the store. It was original 30 pounds purchase and they added fine to make it to 150 pounds. I don’t mind pay it because it’s a damn good lesson for me to learn not to be too trusting/stupid. But I don’t want to screw up my credit file by settling it.

I have recently opened a current account with the major banks with no problem. So I am not sure how much this default is going to affect my life. What shall I do next? It will be greatly appreciated if I can have any advice/suggestion.

Tixy

Option 1 - if you settle the default will still only show for 6years from the original default date not 6years from the date you settle, so it won't be on another 6years from now.

Option 2 - equifax - why is it on as 2 defaults? does it appear as 2 credit accounts, one from the original creditor and one from activ? If so you need to get this corrected. There can legally only ever be 1 default for a debt and that is the original default date. If activ have put a second one on the either need to remove the later one or get the earlier one removed and the date on the later one corrected.

Possible problem with option 2 - if you don't keep them up to date with your current address it is possible they could issue a CCJ against you before the debt becomes statute barred. This would then mean that you won't know about the CCJ to defend against it or pay immediately so you could end up with a CCJ on your credit for a further 6years. (It might not be very likely they will take you to court but it is possible).

How recently have you checked your credit files to see the defaults that are on there? Is it since you moved to your new address?

yhyh_2

Tixy,

Thank you so much for your prompt response. I checked my credit file last week.

On the summary page of the Equifax online app, it shows the number of defaults I got is 2. The 2 defaults are registered against two different address, but it’s the same account. While in Experian its just one default that last updated in 2009. I don’t understand why Equifax displays the information differently.

Tixy

If you checked your credit file at your new address then that will link your addresses and your creditors will be able to see the new one.

yhyh_2

Hi Tixy,

What shall I do next? Write them letters to negotiate the removal of the default? What if they refuse to remove the default?

Many thanks

yhyh_2

I was also told

"It has to be registered by the original creditor & then it can be updated by a debt collection agency. A default should be registered within six months of the original creditor having cause for action.

Complain to the Credit Reference Agency because Aktiv do not have the right to register a default. "

Is this true? Will Credit Reference Agency remove the defaults for me because Aktiv doesnt have the original default notice and is not the orignial creditor.

Answer: The above statement is not true. I have read some of ICO's guidlines. Aktiv can register the default even they are not the original creditor and the creditors do not always need serve a notice of default.

So back to the two options above. Pay to ask them to remove the default or wait for the statute barred.

yhyh_2

Help please.

yhyh_2

Tixy wrote: »

If you checked your credit file at your new address then that will link your addresses and your creditors will be able to see the new one.

How are they going to see the new address? I thought they are only allowed to do a search on my credit file if I agree.

Tixy

yhyh wrote: »

Hi Tixy,

What shall I do next? Write them letters to negotiate the removal of the default? What if they refuse to remove the default?

Many thanks

I don't think you will get the default removed as it sounds like you did default. Some people manage to negotiate with a creditor to remove the default in return for settling but this is not very commonnly agreed to by creditors/DCAs. You could give it a shot (obviously you'd need written confirmation that they would remove it before you paid) but if you try that route you'll be admitting the debt and then it won't go SB, so you'll end up having to pay even if they won't remove the default.


You could certainly try to get one of the entries removed from equifax. I would probably start first by querying it with equifax. They'll then contact whoever put it on and should get one removed. Are they both in the name of the DCA or is one in the original creditors name?

Tixy

yhyh wrote: »

How are they going to see the new address? I thought they are only allowed to do a search on my credit file if I agree.

They can only do a credit application search that shows to other creditors if you give them permission. But when they next enter an update to your file they will see your new address.

yhyh_2

Thank you very much for the reply. All I wanted is to remove the existing default and prevent further default after the existing one fall off the credit file in 2 years time.


My concern for option 2 is: I saw many threads reporting collection agencies continue to put on new defaults on statured barred accounts, some are back to 10 years ago. If this is possible, wait for the account to become statured barred won’t solve problem as I may have further defaults.


Regarding option 1: When I negotiate the removal of the default, can I NOT acknowledge the debt to make sure the account will get statured barred next year?


Is settling the account the only way to make sure that I won’t have any further defaults after the current one fall off the file?


Regardless option 1 or 2, do you recommend me write to them to update my address?