CL Finance - default continually 6 months in arrears

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  • edited 4 February 2013 at 1:40PM
    ylesiaylesia Forumite
    299 Posts
    edited 4 February 2013 at 1:40PM
    CL Finance had done the same to my mum, she went onto a DMP back in 2005 and they have marked both accounts as 6 months late ever since. I wrote to them a couple of weeks ago and I got a (prompt) response saying that they had an option to record a default after 6 months but decided not to as it would be worse to have a default!

    I called them a week past Friday and told them they were having a laugh and to please delete the entries completely (as it's longer than 6 years since they "defaulted") or my mum would be making an official complaint. They agreed to delete them and they are now gone of my mums credit file.

    Interesting CL finance are also her only creditor who are refusing to go lower than 89% on a full and final settlement. I have paid off all her other debts, ranging from 30% to 70% discounts, CL finance can keep getting their £8.02 a month for the next 15 years.
  • Barclaycard also do this. It's so they can continue to trash your credit rating for eternity so you can never recover from your problems. We've got 3 Barclaycard accounts which should have been defaulted in 2010 when we entered DMP's but all show 6's. We are in the process of complaining now.
  • edited 10 February 2013 at 5:21PM
    fatbellyfatbelly Forumite
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    edited 10 February 2013 at 5:21PM
    To quote more extensively from ICO guidelines, which some lenders appear not to be aware of:
    Although there will be some flexibility in the definition of a breakdown, we believe there should be general rules for the minimum period of arrears which should exist before a default can be filed. Equally there should be a maximum period after which, if anything is to be recorded with a credit reference agency, a default must be filed. The following are in line with the practices currently adopted by most lenders.
    • Accounts should not be routinely filed as being in default where full payments or those due under a rescheduled agreement are fewer than three consecutive months in arrears.
    • Accounts should normally be filed as being in default where those payments due have not been received for six months.
    This time framework only relates to filing defaults. It does not affect the lenders’ ability to continue to report accurately on the extent of arrears using monthly status codes. We recognise that may not always be appropriate for products which advance credit over either a very short or very long-term.
  • If you have any complaints about cl finance please contact the financial ombudsman on tele 08450801800
  • Credit Expert were not helpful when I telephoned to complain about cl finance trashing my credit file. I defaulted on my store cards back in 2004 and cl finance say the 6 will stay on my account until 2017 this is ridiculous.


    I blame GE Money for selling my debt to CL finance. Btw I paid the debts in full.
  • fermifermi Forumite
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    As previously stated, reporting a serious of 6's instead of a default when this does not correctly represent the account history is inaccurate.

    Complain to CL finance and demand that they default the account at the correct point. By doing so it's likely that the account will fall off the record.

    State that you will take the mater to the FOS if they do not correct, and follow that through if needed.
    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
  • There must be hundreds of other people out there with trashed credit files because. CL finance Want to unnecessarily extend debt history longer than they should. Yet there is no clear guidance what to do about it unless u come to a website like this. I hope these people search under CL finance complaints on the internet and find this site to give them some assiatance.
  • Thanks to everyone on here for the great advice and support.
  • Ken100464Ken100464 Forumite
    24 Posts
    Eighth Anniversary Combo Breaker
    CL Finance do it to keep the debt alive and if the debtor gets stroppy then they can threaten a default further down the line thus keeping the pressure to pay on.

    Totally against ICO guidelines but they are working on Joe Publics ignorance.

    But they are so arrogant that in my case they have admitted they are wrong and OC had defaulted when account was assigned. They even compensated me for my trouble.

    Nice of em because they still havnt corrected the entry.

    So its gone to FOS who will charge them £500. With my previous compensation they will have lost the entire balance on my account.

    Serve them right for trying this on.
  • I contacted FOS by telephone so they will send CL Finance a letter. I also sent a letter to CL Finance asking them to remove the entry on my credit file. I defaulted on this debt in 2006.
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