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Old Loan advise

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serapis
serapis Posts: 78 Forumite
Hi all,

First of all, if this is in the wrong place, please can a Mod do the honors and ,ove it into an appropriate location. I cant find a subsection that fully relates to my situation.

Here is my issues.

Many years ago I was made redundant, i wrote to my bank and asked to lower my payments on my loan. It was being paid off at £50 per month. They ignored my requested and kept taking the money from my account. This put my current account into an un-arranged overdraft, for which they charged me even more. A few months later they sold off the debt to one of these debt recovery agencies. At this time I had actioned a solicitor to help with the negotiations on my debts (legal aid was such a help back then).

The debt recovery company had no record of the loan, just the current account. So all they wanted was the £150 worth of charges. My solicitor contacted them a number of times and asked for them to find the debt, but they never did, just saying I owed the £150. I setup a repayment plan with them and left it at that. Then out of the blue the debt jumped to over £2000. They had found the loan. I asked them for proof this was the loan and they could never send me any information other than old statements of payments I made to a loan with HSBC years previous. They then sold the debt off to another agency (I wonder why they did that?).

The new agency (CABOT) contacted me and I started paying them. I increased the payments to the same as I was before with HSBC when I was servicing the loan as normal. £50 pm. A year or so passes and they contact me to ask if I can increase my repayments. They offered a discout if I increased my payments). I refused at this time as I was happy paying off at £50 pm.

A few months later I was buying a new car and I was refused credit by everyone. I took a look on credit expert and saw my old loan had a default status. This was the only negative issue with my file :(

I spoke with CABOT and they said if I paid off the loan it would be cleared from my file as a paid off loan. So I negotiate and discount and pay it off. A month later I check my credit file and the old loan is now "Satisfied" not "Settled" and is still listed as "Default".

Sorry this is such a long description but its been a long winded issue. My questions are:

Can they claim I defaulted when they stopped me paying?
Should the item on my credit file now be "settled" and "Satisfactory" instead of "Satisfied" and "Default"?
If there is no signed credit agreement, can I insist the item is removed from my credit file? Its paid off but I suppose this is my last effort to fix my file.

Any advise will be very much appreciated :)

Comments

  • serapis
    serapis Posts: 78 Forumite
    In a nutshell:

    Had loan from HSBC. Made redundant and requested to lower repayments. HSBC ignored requests and took money until current account was £150 into overdraft. HSBC sold debt off but lost the loan. HSBC had no record of loan and nor did the debt recovery company. Start paying debt recovery company £1 pm. 2 years later debt increases to include the loan. Start paying £50pm as per what was originally paid to HSBC.

    Call debt recovery company to ask for a balance. Offered a discount if I pay now which I accept and pay off the loan. Now the loan is set as "settled" on credit report and still says "Default".

    I never defaulted, I was only stopped from paying by HSBC and the management company and they said my credit rating would be increased if I pay it off. When in-fact its been damaged!
  • ~Beanie~
    ~Beanie~ Posts: 3,043 Forumite
    Part of the Furniture 1,000 Posts Combo Breaker
    Was the loan repayment originally £50 per month? It sounds like it wasn't and you came to an arrangement with HSBC to lower the payment to £50 so you did actually default on the original agreement.
    :p
  • serapis
    serapis Posts: 78 Forumite
    ~Beanie~ wrote: »
    Was the loan repayment originally £50 per month? It sounds like it wasn't and you came to an arrangement with HSBC to lower the payment to £50 so you did actually default on the original agreement.

    The loan agreement with HSBC was £50pm.
  • Apples2
    Apples2 Posts: 6,442 Forumite
    serapis wrote: »
    The loan agreement with HSBC was £50pm.
    Are you saying the original agreement (when you first took out the loan) was to repay £50 per Month?

    Be clear, you have said a lot but stated very few facts, how much did you borrow, when, what were the agreed repayment terms, over how many months?
  • serapis
    serapis Posts: 78 Forumite
    Apples2 wrote: »
    Are you saying the original agreement (when you first took out the loan) was to repay £50 per Month?

    Be clear, you have said a lot but stated very few facts, how much did you borrow, when, what were the agreed repayment terms, over how many months?

    I'm sorry but I dont know how "The loan agreement with HSBC was £50pm." is anything but clear. My Loan agreement with HSBC at the time of setting up the loan was for a repayment of £50 pm.
  • Apples2
    Apples2 Posts: 6,442 Forumite
    Just seems a very small repayment amount for a maintstream lender, hence the question of how much you borrowed and when.
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