Credit Report Advice

4_Vesta

Hi,

I'm new to the forum and MSE but have been lurking in the background for a few weeks now and found it to be very enlightening and helpful.

I have recently signed up for the trial period credit report facilities from both Experian and Equifax and would appreciate some advice on a couple of things that I have noticed:

Credit Expert / Experian:
In the credit account information section there is an Loan entry originating in 2005 from Egg Banking PLC marked as defaulted on 30/11/2010. The entry is also marked as 'Debt Assigned to CAIS Member'.

As far as I was aware the alleged debt was sold to a DCA some time ago, but I have not acknowledged or made any payments towards this alleged debt in the past 6 years. So I was some what shocked to see this entry on my report. It appears that a default date has changed perhaps as a result of a debt changing hands, which in my limited understanding is not how such matters should work. Could anybody give me their views on this and offer some advice as to what I could do to rectify this? Should I contact Experian or Egg? Roughly, what should I state in any correspondence. I was of the understanding that Egg no longer existed or was sold off.

Equifax
In the Previous Searches section there are two Table 1 searches made by McKenzie Hall for 'Outstanding Debt'. These were made in June 2010 and September 2011. I do not know what these relate to, but I could assume it may be connected to the above. However, in the Credit Agreements section there is nothing listed in terms of defaults, missed payments or outstanding debts. In fact I only have two entries in there - one is up to date and the other settled about 5 years ago (not a default, just a phone contract I cancelled).

So again, how can I rectify this. Should I just write to them stating that I don't acknowledge the debt and ask that they request Equifax to remove these searches?


I have had financial difficulties in the past, but for many years now I have lived frugally and without the need for credit so I was hoping to see a clean bill of health on my credit reports. Apart from the above, both of my files appear to be in good shape, but I am concerned that the items above may hamper any potential future credit applications.

Thanks in advance.

wanna-be-mortgage-free_2

Not a total expert but surely this debt is now statue barred? Personally I would leave alone as if you start writing to them or the DCA they will more than likely harass you to start paying.

Are you looking to take out more credit? If not, then the default will drop off your credit file 6 years from date of default.

Hope that helps.

Experian_company_representative

If you write to or email us querying the default date we can take it up for you with the data provider. You are right, the default date cannot be changed and should relate to the point at which the account first defaulted.

James Jones

erimus1

Hi there. Sounds as if egg have sold on a statute barred debt and the purchaser has added a default date of when they purchased. I would suggest the best course of action would be to send a subject access request to egg to ascertain exactly what happened with the account - what date they defaulted it on, when they sold the debt etc. When you have this information you will have more to go in.

There is a small possibility that the default date may be correct as far as the administration of it is concerned i.e. egg did not default it for years, just before selling it on. Albeit this does not conform to ICO guidelines, it does happen. Defaults should generally be shown on your credit file within 3 to 6 months of cause of action (ordinarily the last payment received).

I would also suggest that you send a 'statute barred' letter to the DCA, also refuting it. The letter should also include a note, stressing that you will not be making any payment in any event - this will discourage any further contact from them for fear of breaching debt collection regulations.

Hope this helps.

4_Vesta

Hi,

Thanks for the replies.

wanna-be-mortgage-free:
I'm not looking for any credit at the moment no, but I may be in the future. With regards to the default date, that is my point it the entry should not be on my credit report now but a new default date seems to have been applied.

James / Erimus:
Thanks James, I will send off a letter to Experian this week. I will also contact Egg directly to ascertain what the situation is from there point of view. I know that this was defaulted back in 2005 from a previous credit report so can't see how or why it should of changed. Regarding contacting the DCA, I can't do this as I haven't been contacted by any DCA's so wouldn't know who to contact!

Regarding the Table 1 searches by McKenzie Hall on my Equifax report, has anyone else had any dealings with them on having them removed? Doesn't seem right that my credit report can be perpetually tarnished with these searches.