lowell portfolio and default

delvey

Long story short. Looking for a mortgage, found the right one and applied. Got declined due to a problem with a credit report from experian. Strange I thought, never had any CCJs etc and have always paid bills and credit card on time. So I signed up to creditexpert.co.uk
To my surprise I had not 1 but 2 defaults off the above. Was really peed off and angry. So I left it a day and phoned them. One was for a vodafone bill that I had disputed over 18 months ago, and have not heard anything since around this time last year
Lowell Portfolio have never sent me a letter about this, and did not even have any recent contact numbers. Anyhow I paid the vodafone one after some haggling which I know I owed, but the other one I disputed. Emailed experian but they have to contacgt lowell first! Load of rubbish if you ask me.
Now, how can I stop this happening again? And should the default have any effect was it is classed as settled? The other one is nearly 4 years old now so should not hopefully effect me

Thanks for any advice

Buzby

Yes, it counts - being settled is only slightly better than bring owed. Paying off does not make it disappear.

You stop it happening by checking your file BEFORE applying for anything. A good rule of thumb is not to use contract mobiles as it is very much nonsensical to take one out and watch it wreck your finances, whilst you don't even take on any credit!

delvey

So it will remain. My problem is that I have had no communication with lowell portfolio until checking my rating. No letters, no phone calls nothing. And it was only applied a few weeks ago. So when I originally checked my credit rating it was not there

fermi

So the recent one you dispute, and have not paid? And the old one you know you owed and have paid?

If you dispute the debt and the default then as well as registering the dispute via the CRA, it would be a good idea to dispute again via the DCA and provider. If you need to take it further then it helps to have done so recently, as Lowells normally just reply to the CRA that the default is correct and the CRA then says "nothing we can do". If you are to take a complaint further on from that, it helps to show you have also gone direct and so exhausted all avenues first.

delvey

Sorry for not replying, I was at work and did not want to give half a story.
So here is the full story:
I had a 18 month contract with vodafone. After the 18 months, I phoned them to cancel my contract as I did not want it renewing. I told them that I would cancel the direct debit, and anything owing they should bill me and I'll pay this. I also sent this is writing to there cancellations department. This was about 4 years ago.
I never received any bill, until 6 months later in which I got a letter saying I owed 6 months worth of line rental. I called them and disputed, stating the above and at most I owed 2 months worth of line rental as I had cancelled. They said they would check and send me a bill, which if I though was wrong, could dispute. This was over 3 years ago.
I checked my credit rating at the beginning of April. The old default from 2009 (which I have always disputed with Lowell) was shown but nothing else from Lowell group. I find a house, get an offer accepted and apply for a mortgage (this was around 2 weeks ago). Mortgage company says I cannot have one, and to check my credit report. So I did. And there it was. A default from Lowell group, applied on the 5th May. So I phoned them up and asked what for. They stated it was Vodafone. I asked them why they had put a default on my credit report. There answer was that I had not settled the balance on the account. I asked them why they had not tried to contact me previously. There answer was that they had tried phoning me several times over the last few months (on the wrong phone number i should add). I asked why they have never wrote to me, which they could not give me an answer to. I then argued the debt amount, got it lowered and paid it (which I would of done in the first place if they had contacted me). I then asked when the default would be removed. There reply was it will not it will be marked as settled. After a debate and speaking to a supervisor I got no where and told them I would not be paying the other default as I disagreed completely with the contract they said I had 'apparently' agreed to. So I hung up.
I have requested the default to be removed by the Credit Rating Agency who said they would need to speak to Lowell as it had outstanding debt. I told them the above and that I had a letter showing the debt was now paid. I am still waiting for them to reply.

So my questions:
Will the default be removed or marked as settled?
If marked as settled will it affect my change of a mortgage?
Should it be removed altogether?
Is there not a procedure that must be followed before a default is put on a credit report?
What action could I take if lowell or the CRA do not remove it?
I have now had to withdraw the offer on this house until this is sorted, which obviously has annoyed me a little and really annoyed the other half (try explaining to her I did not know about it)

Sorry I am not sure what DRA stands for.
Also for the long text but wanted to give full details
Thank for any help

nicp60

Hi there, The vodafone default will remain as it was valid, and yes, I'm afraid it will have an impact on your credit report. Although marked as settled, as Buzby said, settled is only slightly better than still owing. However, the date of the default can also have an impact, and it is worth speaking to Lowell and explaining that you've had no correspondence about this debt and asking them to at least change the default date to reflect the true date you defaulted. The old default from 2009 which you dispute will also be having a major impact on your credit report. If you dispute this, you need to try and get it removed by contacting the lender directly and the DCA (Debt Collection Agency). I've answered the questions below relating to the Vodafone issue, as you haven't really given enough details about the 2009 default which you dispute.

delvey wrote: »

Will the default be removed or marked as settled?

Marked as settled. It will automatically be removed 6 years after the default date.

delvey wrote: »

If marked as settled will it affect my change of a mortgage?

Yes, it's only slightly better than an unpaid default.

delvey wrote: »

Should it be removed altogether?

No, not if you actually defaulted on the agreement.

delvey wrote: »

Is there not a procedure that must be followed before a default is put on a credit report?

Technically, yes I think, although not legally binding. You're unlikely to get the Vodafone default removed I think. You should have some recourse from the fact that you didn't receive any correspondence at all from them. You need to take it up with Lowells directly. I would say that your chances of getting the date changed are much better than getting it removed.

delvey wrote: »

What action could I take if lowell or the CRA do not remove it?

None I'm afraid. You owed the money and defaulted on the agreement. It is therefore an accurate representation of how the account was run.

delvey wrote: »

Sorry I am not sure what DRA stands for.

DCA - Debt Collection Agency CRA - Credit Reference Agency. Hope this helps.

fermi

I still can't make head nor tails from that whether there is one default or two, or which you have paid and which you dispute. Or if it is a repeat of the original default. When you try to explain, please keep them separate if there are actually two defaults that relate two different debts.

willLeeds

They dont need to communicate with you... You owe them money.

I presume you wouldn't walk out of a supermarket without paying because no body handed you a letter telling you to pay at the till.

delvey

willLeeds wrote: »

They dont need to communicate with you... You owe them money.

I presume you wouldn't walk out of a supermarket without paying because no body handed you a letter telling you to pay at the till.

I owed Vodafone money not Lowell. They must of bought/been passed to from Vodafone.
There are 2 defaults on the account. One from 2009 which is also from lowell and have always disputed.
The second is from May this year and also from Lowell. It has no mention of vodafone and I have paid it. The only reason I knew it was from Vodafone was when I spoke on the phone.

I had no agreement with Lowell over the recent default. There has been no communication from them. The last I heard about the debt was over 18 months ago, disputing the amount with Vodafone

Vodafone

Hi delvey,

Thanks for making me aware of your concerns here.

While I can make no guarantees as to the outcome I'd be happy to get this looked into further for you.

If you'd like me to could you email me with your details via the link in our profile here?

All you need to do is copy and paste the link into your web browser and it'll take you to the Contact us form on our website. To make sure it reaches me could you also quote the code WRT135 - MSE in the subject line?

Once sent you'll receive an automated reply with a reference number. Could you update the thread with this and I'll get back to you as soon as possible?

Kind regards,

Lee

Web Relations

Vodafone UK

Buzby

You need to remember there is a difference between a proper 'Default' which has defined terms of issue, and these are defined as part of the Consumer Credit Act.

Then there are the toy town 'defaults' (note the lack of capital letter). These are classified on a whim of the service provider's computer, and encouraged by the CRA's as adequate payback for your temerity of not paying what was expected in good time - irrespective of whether you had a reasonable excuse or not.

There is no independent appeal process - if the company placing the default refuses to remove it, the CRA will only do so I'd the merchand does not review or comment on the complaint.

The bottom line is, If you do not want your credit like blighted - do NOT agree to the term that suggests you agree to the disclosure. This may result in the service being denied - but it still is an option.