unknown default

tiggy748_2

Just discovered twodefualts on my account which i did jt know about.

One from Tmobile. I took out mobile broadband for uni, it didnt work so cancelled my contract, via post and email (via their website) I also cancelled my DD and as i had returned to dongle i no longer used the service. This was within two weeks - the contract said 30days. I also had two phone contracts with them.
7 months go by and i get a phone call "you owe mony" - "no i dont go away" they keep pestering me so i check my DD my ohone bills are up to date and no issues. I demnad they leave me alone or i call the police at this point they offer to send me my bills at the cost of X, told them where to go thinking this is scam! Anyway they agree to send me my "bills" FOC, i discover they are talking about the braodband contract. After fighting and not getting anywhere I pay the contract - about £300 for a service not used. I immediately moved my tmbolie phone accounts elsewhere and so did my family.
Two years later find my credit history ruined by a default.

I also have a default on my file from bank charges. Vista print kept taking money out of my account, I didnt know about this so racked up bounce payment and unauthorised overdraft bank charges. Bank refused to cancel the CCP from vista print and they kept ignoring my cancellations emails/calls. I stopped using the account and moved elsewhere meanwhile calling for bank charges to be refunded whilst the bank charge stuff was going through the courts. They agreed to stop all further bank charges and payments from the account. They did not at any point tell me this would result in a defualt - i just thought that the overdraft would remain suspended until this was sorted out. This was about three years ago. In all honesty I had completely forgotten all about this account untill i viewed my credit file last week. The amount outstanding is £340 ish. The defualt is being registered every month, so will take 6 years to fall off if i pay it off now.

Is there a way of fighting these defaults? I can always pay off the 340 in return for clearing my credit history, but what about the Tmobile account? I read somewhere that they have to send you a defult notice before registering one? well id dint get one in either case, could this be enough to get them removed? will i need a solicitor to help me? Also i didnt think they could register the defulat more than once per account meaning that doing this every month on my account is again illegal? exifax shows it just once wheras experian shows it every month - how does this work?

Thanks in advance!

tiggy748_2

can anyone advise please?

matttye

You'll have the best chance at getting them removed through a court, rather than through the Financial Ombudsman Service.

If you didn't receive a default notice, which is required by law in respect of the overdraft default, a court should order the default to be removed, unless there's any relevant case law where a court has ordered that defaults should stand even when no notice was sent. The FOS however not only considers law but "relevant law and regulations; regulators' rules, guidance and standards; codes of practice; and (where appropriate) what he/she considers to have been good industry practice at the relevant time."

The mobile broadband is probably not covered by the Consumer Credit Act and therefore they are a law unto themselves in the way they file defaults, but you may be able to get that removed on the basis that you cancelled both over the phone and in writing. Did you keep a copy of the letter you sent and proof of postage?

The default is not being registered every month though, the account is just being updated to show that it is still in default. This will happen until six years after the default was registered, at which point the entire account will drop off your report.

You need to consider carefully whether you actually want the defaults to be removed though, because if a court ordered them to remove the defaults they may be able to replace them with a string of late/missed payments, which will stay on your credit reports for longer.

You should seek legal advice if you're considering court action.

tiggy748_2

can i just asked though.... the overdaft shows 6 months late payment records (over a period of nearly a year) then the black mark. is it not worth offering to pay the 340 overdraft if they remove my DF leaving just the late payments behind? - or are you suggesting they may record late payment to the date of me paying off the 340 ie next month leaving ot to fall off in 6 years rather than four? (in which case i will keep my 340!)

Also is one default is better than two? or does it not make much of a difference if im looking at borrowing? Tmobile falls off in 3 years, overdraft in four so id love to at least get rid of the overdraft DF.

I have account with littlewoods, will this help my credit rating or as people keep going on about credit cards would i be best off getting one of these to build my history back up? At what point would a great history outweigh that of bad?

matttye

tiggy748 wrote: »

can i just asked though.... the overdaft shows 6 months late payment records (over a period of nearly a year) then the black mark. is it not worth offering to pay the 340 overdraft if they remove my DF leaving just the late payments behind? - or are you suggesting they may record late payment to the date of me paying off the 340 ie next month leaving ot to fall off in 6 years rather than four? (in which case i will keep my 340!)

Also is one default is better than two? or does it not make much of a difference if im looking at borrowing? Tmobile falls off in 3 years, overdraft in four so id love to at least get rid of the overdraft DF.

I have account with littlewoods, will this help my credit rating or as people keep going on about credit cards would i be best off getting one of these to build my history back up? At what point would a great history outweigh that of bad?

It's very unlikely they'd do that because you'd be trying to bargain with them for money you owe regardless. Even if they refuse to remove the default you still owe them the money, so they don't gain in any way by removing it. You could try but I think it's a real long shot. They could just take you to court to enforce the debt and you'll then have a CCJ on your record.

I'm saying that if they remove the default, they have to replace it with some kind of indicator to show what state your account has been in since the default was applied. They're unlikely to show your account as "up to date" when you are not, in fact, up to date. They will probably show it as in arrears with late/missed payments or an arrangement to pay for the entire time. Such indicators will not drop off for 6 years from the settlement/default date, so these would stay for 6 years after you settle the account. I'm not sure whether they would be allowed to re-default you from the current date if they followed the correct procedure too. They probably would.

One default is better than two but while you have any default in your history you're likely to be looking at only sub-prime borrowing. The difference between one default or two is probably only which sub-prime lenders will have you!

Any kind of borrowing facility which is ran well (except for Payday Loans - steer clear at all costs) will have a positive effect on your history. Credit cards seem to be widely regarded as being the most positive from what I've seen around here. I presume this is because they tend to be more difficult to obtain than other things such as overdrafts, phone contracts and catalogue accounts.

I would suggest getting a sub-prime card but only if you will pay it off in full each month without fail, as the interest rates are extortionate on most of them.

tiggy748_2

Thanks for your help. I think i will just leave it alone, keep my 340 for now and try to get a card.