Finally Squaring my finances away

Malek988

Hi guys long time reader 1st time poster

Got a few questions but feel i should provide some background 1st

Years ago i was a silly young lad, got a hire purchase car in 2005 messed around not paying payments as i wanted to use the money for other stuff (yes im stupid, and learnt the hard way) got a store card not actually knowing it was a line of credit and not a reward card like nectar etc... so thought the £20 jeans i got for free was a mistake! silly me! Got payday loans etc.... didn't pay them back, same with my phone contract, so as you can already gather lots of missed payments and 3 defaults all my fault, no one to blame no tricks or messing about, all my fault BUT 1

I took a car insurance policy with Open and Direct, they got the car wrong on the policy, i had a 130 BHP version but they insured the 150, so i phoned up to say the policy documents were different to what was actually said over the phone, this happened once before with another company, but one quick phone call and an apology and the problem was sorted and my policy was readjusted to £20 less, but this company said no, cancelled the policy and wouldn't refund my £200 deposit or adjust the policy to compensate for such a small discrepancy.

I was told Pay another £200 deposit and we will start the policy again, no chance, i spoke with the manager, he sorted the problem, then the insurance wrote to me 3 days later saying due to a lack of funds in the bank my £200 deposit was unsuccessful and the policy was cancelled, and i owed them £200, another phone call and couldn't get anywhere, so me being a hot headed 22 year old told them were to go, and that was that never heard anything. Now when i look at my credit rating a few weeks ago for the 1st time, i see i have a default with Lowell to the tune of £200 for a deferred payment, but no name attached, obviously this is open and direct, open and direct have changed systems a few times since then and have no record of this, and Lowell are telling me to pay that's the only way out of this.

My questions are....

1. How do i sort this problem out, paying £200 for a 6 year old mistake is not an option

2. now all my other debts have been paid, and i have managed to aquire me a £100 C/L Vanquis Card, will this plus my always up to date Current Account with Ulster Bank be able to make any positive changes to my score while the big ugly defaults from debts previous and this current default from my car insurance still lurk

so 1 active default from 6 years ago but only showing defaulted in 2008 despite it happening in 2007 the other 2 defaults are now settled but are between 3 and 5 years old

thanks for reading look forward to your replies

Malek988

any body???

Tixy

Right

Have you spoken to lowell? have they sent you anything in the post relating to the alleged debt?

I would start by sending the prove it letter to lowell to see if they have proof of the debt and to confirm that this is the debt you think it is. Copy of prove it letter here - Letter when you know nothing about about the debt - AKA "Prove it" letter

Regarding your file, its good to start building up a positive credit history, but realistically with defaults showing on file, and particularly one showing as outstanding means you are not likely to be accepted for any main stream credit.

The good news is if you use the card sensibly now when the defaults do drop off then you'll have a few years history built up and that will help you at that time.

matttye

After the prove it letter, maybe ask on what basis they've registered a default when car insurance isn't a credit facility. You can cancel car insurance at any time and it simply stops the policy, leaving you uninsured.

Malek988

matttye wrote: »

After the prove it letter, maybe ask on what basis they've registered a default when car insurance isn't a credit facility. You can cancel car insurance at any time and it simply stops the policy, leaving you uninsured.

If you cancel and insurance policy after the 14 days your liable for the rest of the premium, that's what it says on the old documents i dug up, and what it says on my current policy documents