Credit record help - Naughty Cabot

Ames

Hi all. I used to be a regular to get help with debts which I ran up years ago. I became unable to pay six years ago, so I decided to be brave and get my credit report. I'm hoping to apply for a mortgage in the next few months to a year so thought it would be time to start rebuilding. I don't really understand it all.

In the summary it says I have one delinquent account. Then in the list of my accounts there are four in default.

These are the basic details:

Loan - Default - Satisfied - updated September 2011
Default Date September 2006, Satisfaction date September 2008.

I have asked both the original lender and a subsequent DCA for the CCA and not received it. I have a letter from the lender dated about a year after I defaulted stating that the outstanding balance is about £150, the outstanding amount on my credit report and that DCA's have sked for is about 4.5k.

The same account is then listed again as being in default with approx a 4.5k balance, with the creditor as Cabot.

They can't do that, can they? Put their own default notice on an account that's already been defaulted? The default date on that is December 2006, so that should be dropping off my report soon though.

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The next entry is a credit card. Balance currently about 850, balance at default about 650.

Listed by Cabot (not the original creditor), defaulted, last updated this month.
Further details give default date as December 2007.

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Finally another credit card, with a balance of 1.2k and balance at default of 900.

Creditor listed as Cabot (not original creditor), defaulted, last updated this month.
Further details give default date as November 2008.

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So I'm a bit confused at all these with the creditor listed as Cabot, and that the amounts owing have gone up - I thought that once they'd defaulted and been sold on then they couldn't add any more fees? I'm also not happy about the duplicate loan, as it's the biggest amount, but if it drops off next month then it's not really a problem.

I've asked for the CCA for all the accounts, but not received it. I asked again after they'd been passed on through a few DCAs and didn't get any. Cabot shouldn't have any of these accounts anyway, as I asked for the CCA before the accounts were passed on to them.

The next question is how best to start to repair my record, would getting a small limit bad credit, card help?

I'm happy to give any more info needed.

ETA: There's also six credit searches listed. One when I applied for a credit card last week (one of the ones Martin recommends) and was declined. One for applying for my credit report. Two insurance requests (which is lucky because I've been getting dozens of quotes to find the cheapest), and two where I used Experian's search for a suitable credit card to apply for. I don't know how many of those will count against me?

fermi

Ames wrote: »

Default Date September 2011, Satisfaction date September 2008.

Is that right? Makes no sense with the default date after the satisfaction date?

Ames

Sorry, you're right, that's when the account was last updated, I think I went a bit crosseyed. Default was 2006, Satisfied 2008, and last updated 2011.

I've changed my OP so it's right.

fermi

Ames wrote: »

Loan - Default - Satisfied - updated September 2011
Default Date September 2006, Satisfaction date September 2008.

I have asked both the original lender and a subsequent DCA for the CCA and not received it. I have a letter from the lender dated about a year after I defaulted stating that the outstanding balance is about £150, the outstanding amount on my credit report and that DCA's have sked for is about 4.5k.

The same account is then listed again as being in default with approx a 4.5k balance, with the creditor as Cabot.

They can't do that, can they? Put their own default notice on an account that's already been defaulted? The default date on that is December 2006, so that should be dropping off my report soon though.

They can, but they should make sure the original is removed so that there is still only one, and they are not allowed to change the default date.

You could complain, but yes, it will come off this month anyway, so not really any point.

Ames wrote: »

The next entry is a credit card. Balance currently about 850, balance at default about 650.

Listed by Cabot (not the original creditor), defaulted, last updated this month.
Further details give default date as December 2007.

Is the default date accurate? If so then that is OK.

Ames wrote: »

Finally another credit card, with a balance of 1.2k and balance at default of 900.

Creditor listed as Cabot (not original creditor), defaulted, last updated this month.
Further details give default date as November 2008.

As above.

Ames wrote: »

So I'm a bit confused at all these with the creditor listed as Cabot, and that the amounts owing have gone up - I thought that once they'd defaulted and been sold on then they couldn't add any more fees? I'm also not happy about the duplicate loan, as it's the biggest amount, but if it drops off next month then it's not really a problem.

It's a bit of a myth that all interest and charges have to stop once defaulated. There does however have to be contractual provision for that to occur. They can't just be added arbitrarily.

Ames wrote: »

I've asked for the CCA for all the accounts, but not received it. I asked again after they'd been passed on through a few DCAs and didn't get any. Cabot shouldn't have any of these accounts anyway, as I asked for the CCA before the accounts were passed on to them.

Again, it's not true that accounts can't be sold on while in default of a CCA request or disputed.

Ames wrote: »

The next question is how best to start to repair my record, would getting a small limit bad credit, card help?

Quite possibly. A high rate card probably that you spend a bit on each month but pay off in full every time.

fermi

https://forums.moneysavingexpert.com/discussion/3172602

The ‘sale’ or assignment of debts on defaulted accounts

52 When the rights to a debt are sold to a third party, the lender has to make sure the records with the credit reference agency are accurate, up to date and adequate. If they want information about the debts to continue on the credit reference file they will need to come to an agreement with the purchaser about who is to be responsible for this.

53 If the purchaser agrees to take control of the record, the customer should be informed that the debt has been sold or assigned and to whom. The credit reference agency file should be changed to show the name of the purchaser and that the rights to the debt have been sold or assigned. The purchaser should then make sure the record is kept up to date including changes to the amount still owed. The purchase should not affect how long the record is kept. It should be removed six years after the default.

54 Where the purchaser of the debt does not agree to take control of the record, the original lender, and at least in part the credit reference agency, will remain responsible if the original record is kept on the file. When the debt is sold or assigned, the customer will no longer owe any money to the original lender. If the record is not removed, the sale or assignment should be recorded and the balance should be shown as zero. The customer should still be told who the debt has been sold or assigned to.

Ames

Thanks - I was told that the debt couldn't be sold on if it was in dispute.

I guess that with two defaults not due to drop off until December 2013 and November 2014 my chances of getting even a tiny mortgage (no more than 10k) are pretty much nonexistant. Would making a f&f or even paying them off fully make much difference?

I was looking at having a credit card with a limit of £250, but I don't want to take the risk of getting credit if there's not going to be any long term benefit.