Default on Loan Unknowingly

steffi104

I have a 10 year loan with Tesco bank that I took out in May 2006. I recently checked my bank account and noticed that the direct debit hadn't been taken out for the last 6 months. I phoned tesco who told me that they had changed their sort code and had been trying to contact me about it. Unfortunately the address they had was my old one from 5 years ago, which I thought I had told them about, so I have not received anything about this. They have sold the loan to a debt recovery firm! I was amazed about this and I now have a very poor credit rating. I have never ever defaulted on anything before and will be phoning the debt firm tomorrow.

My question please, is how on earth I can get the default taken off my credit report? I feel very aggrieved about this as I did have the funds to pay. Will I end up paying alot more because it is now with this debt recovery firm instead?

Thanks in advance :-)

mumtomany_2

I do not think there is anything much you can do about this. Firstly didn't you notice you had more money each month?? Why should Tesco clear your defult when its not their fault. Ok they changed their bank details but i am sure they would have written to the address they held for you!! Its is your responsibility to make sure they have your right address. Didn't you think it a bit odd that you were receiving your annual loan statement which you are entitled too??

You will now need to negotiate payments with the collector but they may accept what was the original contractual amount.

meer53

You won't be able to get the default off your credit report. It's not Tescos error, it's yours. Why didn't you contact Tesco ?

steffi104

I contacted Tesco as soon as I realised it. This is my only loan so I didn't kmow I should get an annual statement. I thought I had told everyone about my change of address and I didn't notice more money in my account as I have alot of debits/credits going through and the balance changes all the time.

mumtomany_2

Unfortunately i think this is what you will have to call having to take personal responsibility for the problems now. You are unforntunatly to blame and it is a hard lesson to learn.

I'd suggest better managment of your direct debit in future. Good luck with negotiations. If you find it hard to get an affordable agreement in place make sure you seek help from a debt managment company.

[Deleted User]

steffi104 wrote: »

I contacted Tesco as soon as I realised it. This is my only loan so I didn't kmow I should get an annual statement. I thought I had told everyone about my change of address and I didn't notice more money in my account as I have alot of debits/credits going through and the balance changes all the time.

fgs everybodys balance changes almost daily,stop trying to blame someone else for your mistake

Tixy

They are within their rights to keep the default on. However you could try writing to them and asking them to consider removing it - there might be a slim chance they'll remove it.

If you had any proof of giving them your new adderss (copy of a letter sent to them, or any post from them at the new address) then you'd stand a fairly good chance of appealimg.

somethingcorporate

You defaulted, hence you should have a default on your credit report.

steffi104

Tixy wrote: »

They are within their rights to keep the default on. However you could try writing to them and asking them to consider removing it - there might be a slim chance they'll remove it.

If you had any proof of giving them your new adderss (copy of a letter sent to them, or any post from them at the new address) then you'd stand a fairly good chance of appealimg.

Thankyou Tixy I shall have a look to see if I have had any mail from them and once I get a new payment set up I will ask about removing it. Hard lesson learnt:o

maginot

I do agree you have to take some responsibility but feel that some responses are a bit harsh.
You should really have noticed after one, maybe give the benefit of the doubt and say two payments had not left your account.
However if you had ever missed a payment before and the only reason the payment didn't come out was because the account details had changed, I do think Tesco should also take some responsibility for not contacting you depending on if they made a significant effort.

Did you have any other contact details e.g. Email, mobile phone that was still valid. Why did they have your old address, did you contact them when moving.

I would say that Tesco should take the debt back and they probably will if you contact them rather than the debt collection company, therefore just pay the original debt again and any charges written off. Removing the default may be more difficult though, as if not their fault banks are reluctant to change these if accurate.

thriftymomma

If Tesco have sold the debt, can't see them 'taking' it back to be honest.