Creation Finance Default .. please help

dennjack

Hi,
I have had a default recently put on my credit file from creation finance. It relates to a debt that I last paid in 2005.
I have been chased by three debt collection agencies working on behalf of creation since 2005. I successfully argued with 2 that there was no debt to pay and they wrote to me to say the case was closed and my credit file would be amended accordingly. A third agency contacted me in late 2011 by which time I had a discharged bankruptcy order which they appeared to pounce on and did not want to know or engage any more. in 2012 Creation themselves whom the credit agreement was with filed a default.
I am sure that this is entirely wrong, I have never received a default notice from Creation and surely they cant just arbitrarily file a default notice 7 years after......... or can they? After a serious illness I am just getting my life back on track and the last thing to get sorted is the credit rating, I really don’t want it to be another 6 years to drop off my file because of what appears to be vindictiveness and laziness on the part of a debt collection agency and finance company. Any advice would be truly gratefully appreciated. Many thanks

fermi

Several things....

- Why were you arguing against the debt back in 2005? Was this a valid debt that you defaulted on back then and then paid off? If so, I assume you actually defaulted in around 2005?

- When was the date of your bankruptcy?

- When is the actual "default date" of the default now on your report?

dennjack

Thanks Fermi,

The agreement was a 0% deal which then turned into a high interest loan, I argued that this had not been made clear to me when I took the agreement and that at no time had I been informed of the change, I put down a large deposit and maintained the account well until then.I felt like I had been swizzled. I don’t think they could produce some of the relevant paperwork also. There may have been other points but it was several years ago and I cant remember exactly, but I do remember that I did get letters from both DCA's saying case closed pre-bankruptcy. I received a letter from another DCA demanding monies relating to the same debt and told them all this plus in addition that I had been made bankrupt since then and never heard from them again until this default was added. My bankruptcy was in june 2009. The default date is showing on my credit report as August 2009 and the default was added in October 2012 latest entry was last month showing that the account is in default.

struggler

I am writing this to update an earlier posting regarding IVA Watch. This is now Watch Portfolio Management. They have just posted 4 entries on my credit file, and I have asked them to tell me what they are and to correct the default date to the date of my IVA and not the following year as they have it.
I wrote to them and they came back to me to ask for copies of my report which I sent them. They now will not answer my e mails. Has anyone had any dealings with these people or IVA watch as they were. Sandra Deane is the person who is supposed to be looking into this. I am trying to get my credit files to accurately reflect the dates so thatt they will be off after the 6 years have elapsed.

fermi

Well, even if you were for arguments sake to say that the default in 2009 was correct, then it would only be on your report for a 2 months longer than your bankruptcy anyway. The current default would fall off in August 2015 while the bankruptcy falls off in June 2005.

The bankruptcy is far far far worse on your file in the meantime, so in a brutally pragmatic assessment you would be fighting here for a slightly better looking credit report for all of a 2 month period in 2015, after which it would be neither here nor there anyway.

So in case (1), you do nothing.

Then there are 3/4 disputable points here:

(2a) Any default should have been on or before the bankruptcy date. That would be the simplest to argue, even if you think the default should really have been much earlier. As said, the BR on your file makes backdating the default further of dubious value.

(2b) If you assume the debt and default was valid, then your bankruptcy means it should now be marked as settled or partially settled.

(3) Even if valid, it is arguable that any default should have been applied in 2005 or so. Dating it as 2009 is not an accurate representation of the account status, so is arguably a breach of Creations duties to report accurately under the Data protection Act/principles.

(4) There should never have been a default in the first place.

So which do you argue? How much hassle do you want to got to for what gain?

In case (1) where you do nothing, your file would have a default on it and be bad for 2 months longer than it might otherwise have been.

For 2(a/b) you would gain a couple of months with a clear file and the debt being marked as settled in the meantime.

For (3) even if successful and the default is backdated (effectively removing it), your credit file is still trashed until 2005 due to the bankruptcy.

For (4) different reason for removal, but same outcome as (3).

Plus the further you go down that list the more likely it is that it's going to be a hassle and hard to prove your case?

How far you want to fight and on what is up to you really.

dennjack

Thank you Fermi,
Your pragmatic breakdown has helped me to see what's what. I will have a think about it, but I am leaning towards fighting it. Not for any practical gain, as you rightly say its not going to help my credit situation, but it feels like a vindictive action on their part after all this time and I would like it rectified. I am thinking of sending them a subect access request to see if I can understand what’s behind their decision to do this. Thanks again, it is good advice, much appreciated!