Question about credit report

harvey1919

Hi everyone

I have an account with Equifax and have noticed that it says I have an account with o2 which is 4 payments in arrears.

The debt was passed to Moorcroft and I agreed to pay £50 a month with them. I have made 3 payments off the debt.

Who do I need to contact to arrange for the status of the account to be changed? Is it Moorcroft? Thanks in advance!

reallyAnnoyed_2

Do these arrears appear as late payment on your O2 account history or separately as outstanding debts?
If as unsatisfied debt then probably Moorcroft registered them and you will need to contact them to update your credit file.

harvey1919

They appear as outstanding debts...

I will give Moorcroft a call today and see what they say. Thank-you.

paulmapp8306

You wont get them removed.

Moorcroft will be managing your account, BUT the original contract will call for full payment - therefore £50/month isnt meeting that - so it deemed a tlate payment.

Eventually, when it gets to 6 months it will default unless your totally paid up before then - and agreement with moorcroft wont affect that, as the default/late paymetns are against the original contract.

paulmapp8306

How much is the debt for? you really need to clear it before it becomes default at the 6 month point. 6 months late payments will be pretty much ignored by future creditors after 2 years, but a default will be taken into account for 6.

harvey1919

It's was originally £635.00 but I have paid £150.00 off it. I can't afford to pay it all off now. I don't understand if Moorcroft have bought the debt, how it is showing from o2 as a late payment?

Gordon_Hose

Moorcroft obviously haven't updated the entry in your file yet.

Jinx

If the debt is with Moorcroft I'd say its already defaulted......

erimus1

Moorcroft are not the owners of the debt, they are merely collecting on behalf of O2. O2 are still the data controllers, and so are the only ones who are responsible for updating the credit file records. Some people are stating the account will automatically default when the account is six payments late - this is not correct. The ICO guidelines state that an account should be defaulted on CRA records when an account is between 3 and 6 months late. However, is does also require that all reasonable attempts to resolve the debt have broken down to do so.

Clearly, when there is an arrangement to make payments to pay the debt down, it should, and would not be defaulted on your credit file. When this situation arises, some creditors will show the account as being 1 2 3 4 5 6 6 6 etc payments late. Until the balance is paid, then showing it as S or 0 then S.

Some creditors will instead show the account at being AP when this arrangement is in place. Until settled and the account is closed. Then showing an S or a 0 then S

Please ensure you don't stop making the payments and let them issue you with a notice of default on your credit file - these are her damaging. Whilst late payments are very bad, as are AP status, defaults are often an automatic refusal for credit on applications.