CL Finance - defaults 6 months in arrears

in Debt-Free Wannabe
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  • fermifermi Forumite
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    I can't imagine them agreeing to alter it without a kick up the backside by the ICO/FOS, but you never know.

    You do however need to show the ICO/FOS that you tried to resolve it yourself, before taking the complaint to them.
    Free/impartial debt advice: National Debtline | StepChange Debt Charity | Find your local CAB

    IVA & fee charging DMP companies: Profits from misery, motivated ONLY by greed
  • Fermi out of curiosity ... could they remove the late payment markers and add a "retrospective" default - or is that not allowed?
    Grocery Challenge £211/£455 (01/01-31/03)
    2016 Sell: £125/£250
    £1,000 Emergency Fund Challenge #78 £3.96 / £1,000
    Vet Fund: £410.93 / £1,000
    Debt free & determined to stay that way!
  • fermifermi Forumite
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    The record can be ammended however they choose. No problem with that.
    Free/impartial debt advice: National Debtline | StepChange Debt Charity | Find your local CAB

    IVA & fee charging DMP companies: Profits from misery, motivated ONLY by greed
  • yaggeryagger Forumite
    10 Posts
    I was going to place a new thread about this, but I saw this thread and its almost exactly the same situation I am having, I am going to write to the creditor in question, and have written something that I hope will get them to change the default date, was wondering if someone could suggest any changes to my letter below. Many thanks


    After reviewing my credit reference files I note that you have placed a series of markers against the account number above as 6 months late since November 2007, until the default date that you put on as April 2010. I would point out that is not a true and accurate reflection on this account. And I wish to register a complaint with your company.

    I require you to make the default of this account from December 2007 as its deemed unfair to effectively extend the default beyond 6 years. This is outlined by the Information Commissioners Office, and referenced below for you.

    4 It is an accepted industry standard to record only serious ‘defaults’ with credit reference agencies. The term ‘default’ on credit reference files is used to refer to the situation when the relationship between the lender and borrower has broken down. A record showing a series of payments as six months in arrears when this does not reflect the real payment history should not be used as an equivalent of a default. Where a code is used to describe a default or variation in payment, it should always be accompanied by an explanation in plain and intelligible terms which informs the reader of its meaning.

    I ask that that you amend on all credit reference agencies the true reflection of this account within 28 days, otherwise I will forward this complaint to the Information Commissioners Office and Financial Ombudsman Service for a ruling by them.
  • Thanks Fermi - I know this might take a while! And good luck, Yagger. Here's what I'm sending - feel free to use any bits for yours that you think might help!

    [FONT=&quot]Dear Sir / Madam,[/FONT]
    [FONT=&quot]
    [/FONT]
    [FONT=&quot]Account number:
    [/FONT]

    [FONT=&quot]Customer number:
    [/FONT]

    [FONT=&quot]Outstanding balance: £0[/FONT]
    [FONT=&quot]I refer to my earlier letter of 24th February 2012 and your subsequent reply of 5th March 2012.[/FONT]
    [FONT=&quot]Thank you for your quick response. [/FONT]
    [FONT=&quot]You state that you kept my credit file at the status ‘6’, as you felt that this would be less detrimental to my credit file than issuing me with a default. By keeping this account at the status ‘6’, you have ensured that this account remains on my credit file until 24th February 2018 (6 years from the date that I cleared the outstanding debt). [/FONT]
    [FONT=&quot]As you are aware, if I had continued to make the small repayments (as I had been since April 2005), the above account would not have been cleared until July 2019, with the account remaining on my credit file until July 2025. Had a default notice been entered onto my file after six months of contractual arrears (as you state you could have done), I would have defaulted in September 2005, and this account would have been cleared from my credit file in September 2011 (ie, 14 years sooner than it would have been, had I not been in a position to pay it off last month). [/FONT]
    [FONT=&quot]As you know, the ICO advises that, ‘[/FONT][FONT=&quot]If the payment set out in the DMP is at a level that represents only a token sum in repayment, because that is all the customer can afford, the account should be recorded as a default… The notice will distinguish the customer from those who have acted less responsibly. The record should be removed six years from the date of the default so that the customer is not disadvantaged over those who have made no effort to pay whatsoever.’ By keeping my credit file at status ‘6’ for seven years, and not filing a default, you have disadvantaged me over those who have made no effort to pay whatsoever.[/FONT]
    [FONT=&quot]Furthermore, the ICO state that, ‘A record showing a series of payments as six months in arrears when this does not reflect the real payment history should not be used as an equivalent of a default.’ You have used the status ‘6’ as an equivalent of a default in this instance and I request that you now amend my records to show that I defaulted in 2005. If you are unable to do this within the next fourteen days, [/FONT][FONT=&quot]I will forward a complaint to both the ICO and the FOS.[/FONT]
    [FONT=&quot]Yours faithfully,[/FONT]
  • fermi wrote: »
    In the short term, worse. But on a long term repayment plan a default clears after 6 years.

    This fake 6 month in arrears record screws their credit record nearly as bad as a default, BUT for 6 years beyond the settlement as well.

    So in this case for nearly 13+ years. :eek:
    It's also not an accurate record of the account. Full stop.

    But would have been gone altogether in 2011 had the default been recorded when it should have.

    I had deleted the post you've quoted almost immediately as I had missed that the issue was so old and when I realised I removed it .....
    Grocery Challenge £211/£455 (01/01-31/03)
    2016 Sell: £125/£250
    £1,000 Emergency Fund Challenge #78 £3.96 / £1,000
    Vet Fund: £410.93 / £1,000
    Debt free & determined to stay that way!
  • edited 10 March 2012 at 6:53PM
    fermifermi Forumite
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    edited 10 March 2012 at 6:53PM
    I had deleted the post you've quoted almost immediately as I had missed that the issue was so old and when I realised I removed it .....

    Sorry. I must have managed to click the quote button in the small amount of time the post was up.

    Then went off and did something else for a [STRIKE]few mins[/STRIKE] EDIT: more like 10!, before finishing the reply. Didn't see it had gone in the meantime. :o
    Free/impartial debt advice: National Debtline | StepChange Debt Charity | Find your local CAB

    IVA & fee charging DMP companies: Profits from misery, motivated ONLY by greed
  • fermi wrote: »
    Sorry. I must have managed to click the quote button in the small amount of time the post was up.

    Then went off and did something else for a [STRIKE]few mins[/STRIKE] EDIT: more like 10!, before finishing the reply. Didn't see it had gone in the meantime. :o

    Thanks Fermi - it was literally as soon as I'd re-read the replies above I realised I'd "done a bo-bo" and tried to hide the evidence ASAP but was found out :rotfl:
    Grocery Challenge £211/£455 (01/01-31/03)
    2016 Sell: £125/£250
    £1,000 Emergency Fund Challenge #78 £3.96 / £1,000
    Vet Fund: £410.93 / £1,000
    Debt free & determined to stay that way!
  • fermifermi Forumite
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    Done that myself, only to find some awkward sod has quoted it in the meantime. :o :rotfl:
    Free/impartial debt advice: National Debtline | StepChange Debt Charity | Find your local CAB

    IVA & fee charging DMP companies: Profits from misery, motivated ONLY by greed
  • yaggeryagger Forumite
    10 Posts
    Thanks Fermi - I know this might take a while! And good luck, Yagger. Here's what I'm sending - feel free to use any bits for yours that you think might help!

    Thanks I have used some of your text as well, I am trying to tidy up my CRA records and apart from one other lender apart from this one its going very smoothly. I don't know why these companies do this, its like a double whammy.
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