Default Date Changed? HELP!!xx

Janeyxox

Hello All,

This is my first post so please be nice

So, we just got a copy of my husbands credit report to see where he is with his credit and this is the situation...

Back in December 2007 he lost his job and stopped paying back his loan and overdraft with Llyods TSB, he has not had any contact or paid any money to them since this date. I was led to believe that after 6 years these debts would be stature barred? However when we have looked on his credit report it shows the loan and overdraft last being defaulted in 2009? How is this?

Thanks Janey xxx

Tixy

The default date is not relevant to when a debt becomes statute barred.

A debt becomes statute barred 6years after the last payment or written acknowledgement from you (or in the case of the overdraft 6 years from when it was recalled by the bank), and only if they don't take court action against him in the meantime.

Do you know when the overdraft was officially recalled? do you still have copies of the default notices for either debt?

With regards to the default dates on his credit file - ICO guidelines state that a default notice should be issued typically within 6months of a debtor ceasing payments, or making reduced payments (or 6months of an overdraft being recalled).
You could contact LLoyds to challenge the default dates - and state that you believe they were entered much later than the ICO guidelines recommend - but obviously to do that would likely result in him being chased for the debt again.

If this is the first time recently he has ordered a copy of his credit file its quite likely that lloyds or a debt collector might start chasing again (because they now have a recent confirmed address from his credit file).

Janeyxox

Hi,

Thank you for replying.

He hasnt had any contact with Llyods since before the last payment was made (just ran away from it basically).

We have absolutely no paper work because his Mum and Dad chucked it all out, very helpful I know!

We have moved a couple of times but since our last address probably 8 months or so ago we set up a joint bank account with barclays and they passed the address onto a debt collection agency and then moved again back to my parents (to try and save a deposit for a mortgage) and not herd anything here so im confused, are they giving up or should we expect something through the door?

Sorry to sound confusing but in the long and short he hasnt had any contact or made any payments since December 2007 and the default is showing July 2009.

Whats the best thing we can do at this point? hoping to get a mortgage but got no chance with this lurking over us!!

Thanks Janey xxx

Tixy

The best thing he could do in terms of getting a mortgage in the next couple of years would probably be to contact the lender to state that he believes that the default dates are incorrect, and much later than is reasonable - and then to repay the debt in full.

In the hope that he ends up with a credit file with defaults perhaps a year earlier than now and with those showing as satisfied. That said its not an easy argument with them to get default dates changed - it can take some time and work and quoting of the ICO guidelines. And he may need to do a subject access request to find out exactly when the default notices were issued and the the overdraft recalled.

If he doesn't intend to repay then he is likely going to need to accept that this will be on his file until 2015, and hope that they don't take court action in the next year or so for the loan, and perhaps a bit longer for the overdraft.
If they did take court action then it would be best if he is in a positoin to pay off the CCJ within the month of it being issued - so that it doesn't appear on his credit file. So ideally he would need to have savings ready in case that happens.