Advise Please!

Creditcrunched_2

Hi All,
I was hoping some of the nice people on here could offer me some advise relating to my credit report;
On checking my equifax credit report recently I noticed somthing which I couldnt quite get my head around. I owe an oustanding amount to Black Horse (around £8000) from a loan which was taken out in 2003. On my equifax report the amount is showing as 6mnts in arrears even though the account is in default.
I have checked experian and this debt does not show on their report.
The account was opened in early 2003 and I started on a debt management plan with CCCS in 2007.
I know I have been issued at least 2 default notices which I'm trying to locate.
So, my questions are;
1. Why is this account still showing as 6mths arrears when the account is in default?
2. I thought that no record of a debt can still show on your credit report after 6 years?

If anyone can help me to understand this I would be very grateful!

gargrave50

Have you acknowledged the debt at all? You say you started a DMP 2007 so I am assuming the account was in default by then? The debt should be removed from your credit report 6 years from the date of the default unless you have acknowledged the debt and made the odd repayment since then. Not an expert, but that's my understanding

fatbelly

What default date is showing? The entry drops off your record six years from that date.

Creditcrunched_2

Hi, thanks for your reply,

I have made regular payments on my DMP since it started in 2007. Not sure if the account was in default when I started on the DMP, but I can remember recieving a couple of default notices.

Does anyone know why the account would be showing as 6mnths in arrears on my credit report and not a default?

Can I ask Black Horse how many default notices they have sent out and when? and can I request copies of these?

On my current DMP it will take me another 6 years to clear this debt, does this mean that this account is going to show on my credit report as 6mths arrears for another 6 years!?

All advise is much appreciated

Creditcrunched_2

Hi,
There is no default date showing on the credit report. Just states 6mnths in arrears.

fatbelly

Creditcrunched wrote: »

Hi,
There is no default date showing on the credit report. Just states 6mnths in arrears.

It's showing as an 'open' account, meaning it will stay on your record until six years after it's paid off!

If there was a default issued, that should have been recorded, and the entry is deleted six years from that date.

http://www.experian.co.uk/consumer/faq/CA1.html#q629

Creditcrunched_2

Hi,
OK, a bit of an update on this;
I contacted Black Horse today to ask for a copy of the first Default notice that was sent out. The guy at Black Horse was really cagey, at first he would only tell me the date the last default notice which was sent out (03/11/2009), I managed to press him a bit more and he told me that there had been 8 default notices sent out in total over the life of the account, I told him that I just needed to know the date of the first. After a couple of long waits on hold he eventually came back and told me that the first default notice was issed 30/12/2004.
I have asked for a copy of this and he said he printed one off and will send out in todays post.

So...

As this debt is still showing on my credit report as '6mnths arrears', does this mean that when I recieve this default notice dated 30/12/2004 that I should contact equifax and my credit report should be updated and this debt should no longer show on my credit file?

Can anyone shed any light on this?

Many Thanks in advance

fatbelly

The ICO guidance on defaults is here:

Filing Defaults

I'm not sure the document deals with your issue, but I guess you could clarify this with the ICO- it seems logical that once you are in default, you are in default, that should be recorded at the CRA and then that record is deleted after 6 years. So, with a first default in 2004, the entry should now have disappeared.

It seems an abuse of the system for them to file multiple defaults (eight of them so far!) over an indefinite period, just to stop this from happening.

Creditcrunched_2

Hi,
Thanks for post fatbelly, Ive read the ICO document and it clearly states that a creditor cannot list an account as 6mnths in arrears when the account is in default and a default notice has been issued as this would be classed as misrepresentation under that data protection act. I have conacted the ICO and spoken to an adviser who confirmed this.

The copy of the original default notice which i requested from Black Horse has arrived (dated 30/12/2004) so my next question is what is my next step?

Do i contact Black Horse by telephone and explain this situation, stating that this in breach of the data protection act, quoting the ICO guidelines, and request that they contact the CRA's and have the information relating to this account removed as it over 6 years since the original default notice or do I do this by letter?

Or would I be better off contacting equifax and explaining the situation to them?

Either way it seems to me that this account should no longer be on my credit report?

Any advice is welcome as always

Creditcrunched_2

Hi topcat,
Thanks for your reply,

The letter i recieved states that; This a default notice served under S87(1) of the Consumer Credit Act 1974.
It states that i have broken my agreement as there are arrears of £xxx. and to remedy tthis breach I must pay the arrears by 10/01/2005. Which I didnt.

So, how can I tell if this is a 'genuine default notice' ?

What do I do now? should I contact Black Horse? and if so, should I do this by phone or letter?

I dont see how they can say the account is 6mnths in arrears and pass this information onto CRA's when this clearly isnt the case.

topcat9

Hi CreditCrunched,

Having read your posts I'm wondering if you were actually defaulted? I dug out two default notices I got from RBS at the start of my DMP and they state 'the breach is capable of remedy if you make a payment sufficient to clear the arrears'. The way the DMP payments worked, I did actually clear the arrears a couple of times and get a couple of these notices before they finally terminated the account at a later date. So...this implies to me that getting a default notice doesn't mean a default will be placed on your credit file, it is threatening to do this and take further action if you don't make satisfactory payment. Perhaps others could help out on this?