Default on file and ICO regulations - what next?

katebl

Hi all,

Not sure if this is the right place but if anyone can help would appreciate it. Having read fermi's very helpful post regarding this I just wanted to run this past anyone who can give an opinion.

Looking at a friend's credit file they originally had a mobile phone contract which went to a DCA in late 2006 (their credit file shows an agreement with Lowell starting in August 2006), the last recorded payment according to a statement sent by Lowell was on 6th Dec 2006. A default was filed on the 7th October 2007, 10 months later.

From what I can understand, according to fermi's guideline post, this default should have been filed at the latest 6 months from the date of the 'breakdown of the agreement' - at which date should this roughly have been done by? By my rough guess this should have been at the latest August 2007 - allowing for a month from the last payment for them to notice payment wasn't made, a month for notice of default, and then the 6 month period. Do I have the right idea here? Please let me know if not.

fermi

Went to a DCA in late 2006? So when did they break the phone contract agreement to result in that?

That would be the "breakdown" relevant to working out what date might be fair.

However, passing the debt to a DCA is also arguably a clear indicator of a default, so it would also be possible to further argue that any default should proceed the debt being passed to Lowells or at the latest be filed at or around the date it was.

The indication of a breakdown and indicators of a default are all a bit "vague" in definition and open to interpretation and latitude given the circumstances, so it's rarely possible to pin down an exact date and say "the default should have been filed then."

katebl

Thanks fermi,

Not too sure when the contract was broken to be honest - the credit report reads this -

Name: xxxxxxxxxxxxxxxxxx
Address: xxxxxxxxxxxxxxxxx
Date of birth: xxxxxxxxxxxxxxxxx

Company name:

LOWELL PORTFOLIO I LTD

Account type:

Communications

Started:

22/08/2006

Default Balance :

£463

Current Balance :

£679

Defaulted On :

07/10/2007
File Updated for the Period to: 24/04/2011

and a statement sent by Lowell shows a period covered from 23/10/06 onwards with an opening balance of £58.00 so I'm assuming this would indicate it went to the DCA from October 06? This gives just under a year from the sale of the debt to the default.

fermi

Well, there is no way that is correct or fair.

It's just a case of whether it's worth the argument?

I'm sure Lowells would say that what they have done is correct.

If so, then that means you would have to make a formal complaint to the ICO which can take 6 months or more. Even then, the ICO have been known to make some bizarre decisions that contradict their own guidance, so a complaint isn't guaranteed to succeed.

Similar goes with disputing the information's accuracy through the credit reference agency. They will ask Lowell if the info is correct. If Lowells say it is, then they will leave it as it stands.

I suppose a letter of complaint to Lowells and a dispute through the CRAs would be the thing to do anyway? Maybe they will turn over a new leaf and sort it without argument? I doubt it, but you never know?

katebl

Well if it stays there for the rest of 6 years from that date that's what they were expecting - but does that mean that if the original debt is sold on and added to with charges another default could be added if this one is amended/removed?

I think I'll do some research on the complaints route. If you have any ideas as to template letters please let me know! There doesn't appear to have ever been a notice of default sent out which from what I understand is also against regulations - would a SAR be of use to prove this and maybe strengthen the case and would it need to be sent to Lowells or the original creditor?

Thankyou so much for your help.

katebl

If fermi or anyone else has any input thanks in advance...

This went back to 3 chasing for payment and has now been referred to Red Debt collection who have sent a request for payment. I am thinking the best thing to do next is send a SAR from what I've read - but do I send it to 3? I have read stories of the DCA's using the £10 payment against the debt so they have another 6 years to chase for it, and wasn't sure if any info they had would help anyway? As far as I can see it depends if 3 followed correct procedures at the beginning (i.e. notice of assignment) as to whether the default was incorrectly placed.

Any advice appreciated!

katebl

Just bumping in the hope of a response