Removing a default

Candyapple

I have a default on my credit file dated Oct 2008. The catalogue account was opened in Dec 2003. I never ordered anything from them but they claimed to have sent me one of those 'we think you'll like this and if you keep it you pay for it otherwise send it back and nothing will get charged to your account' item of clothing 1 month after account opening, but I never received anything and disputed it at the time and thought nothing of it as the company said they would remove it from my account.

I then moved in mid 2004 and at the latter end of that year I vaguely remember receiving a letter from the catalogue company (was sent to my old address via mail redirect) about now owing them £40 (original amount being disputed was £20) and whilst I know I should have chased them and sorted it out back then, foolishly I didn't and chose to ignore it. I also moved address in 2005 and then 2007 to my current address.

I never heard a peep about it from then until last year when I started receiving phone calls/letters from Cabot Financial which co-incides with the time I applied for a credit card so I guess something triggered in my file as being active. I checked my credit file and the outstanding balance is now £196 which I presume is made up from passing it onto debt collection agency/charges etc.

My question is, if my account was 'defaulted' per say back in Jan 2004, why did it take them 5 years to register a default in 2008? I'm sure I have read somewhere about having to register a default within a reasonable timeframe or 6 months?

Does it also make any difference that on my credit file the debtor who defaulted me is down as Cabot Financial and not the catalogue company? There is no record of any previous history of payments or anything from 2003-7, the account only shows history for 1 year (2008) and all in the number '8' until Oct 2008 where it is marked as a 'D'.

Thanks if you managed to read that wall of text, what can I do to remove the default? Can anyone point me in the direction of any template letters please?

woodgreen2013

I would not worry too much. The worst thing for you is you have to wait about another year and it will be then 6yrs and it will all be washed away. If you really want to get credit before that time, then request a copy of you credit agreement with them. If they dont get it to you in 12 days then its all washed away just the same as the 6yr thing.

shortcrust

woodgreen2013 wrote: »

I would not worry too much. The worst thing for you is you have to wait about another year and it will be then 6yrs and it will all be washed away. If you really want to get credit before that time, then request a copy of you credit agreement with them. If they dont get it to you in 12 days then its all washed away just the same as the 6yr thing.

No! It doesn't get 'washed away'. This is what happens:

http://www.oft.gov.uk/about-the-oft/legal-powers/legal/cca/unenforceable-credit-agreements#.UdKlHsu9KSM

Fintwo

So after 6 years it is called statute barred. It is removed from your credit file, but the lender can still chase you for it? But surely no one would bother paying it after it has been removed from your file?

rizla_king

Candyapple wrote: »

My question is, if my account was 'defaulted' per say back in Jan 2004, why did it take them 5 years to register a default in 2008? I'm sure I have read somewhere about having to register a default within a reasonable timeframe or 6 months?

Does it also make any difference that on my credit file the debtor who defaulted me is down as Cabot Financial and not the catalogue company?

Yes they should not wait that long to record a default.

http://www.ico.org.uk/for_organisations/sector_guides/~/media/documents/library/Data_Protection/Detailed_specialist_guides/default_tgn_version_v3%20%20doc.ashx

Read section 11.

Cabot bought the debt and any default would now be in their name. That is the way it works.

rizla_king

woodgreen2013 wrote: »

I would not worry too much. The worst thing for you is you have to wait about another year and it will be then 6yrs and it will all be washed away. If you really want to get credit before that time, then request a copy of you credit agreement with them. If they dont get it to you in 12 days then its all washed away just the same as the 6yr thing.

Nonsense. Failure to provide a copy of a credit agreement won't remove a default.

LadyCava

Hi! I wonder if anyone can help me with a current issue. My bank of 7 years, with whom I have a cuurent a/c and credit card, out of the blue cancelled my credit card with no reason. In fact, I was in credit with the card to the tune of £5.29! I have never defaulted on a payment to them and have paiff mortgage. I have regular amount going into current a/c which they recently upgraded to their best deal a/c. I had a default ( company went under and I couldn't who to pay) but that was over 7 years ago. Complaints dept at bank can't even explain why card cancelled. Has anyone had anything simikar and any advice on how to proceed would be gratefully received. Cheers

Tixy

Fintwo wrote: »

So after 6 years it is called statute barred. It is removed from your credit file, but the lender can still chase you for it? But surely no one would bother paying it after it has been removed from your file?

Statute barred is nothing to do with a default date.

The date a debt becomes statue barred is not linked to the date of default.
A debt could have dropped off a credit file (due to being 6years from the date of default), but not necessarily be statute barred for many years afterwards (if the debtor has made payments towards the debt).
There can therefore be a very good reason to pay a debt that has dropped off your file, because it is owed and because the creditor could take court action and obtain a CCJ against a debtor, which would then appear on there credit file.

Tixy

Candyapple wrote: »

Thanks if you managed to read that wall of text, what can I do to remove the default? Can anyone point me in the direction of any template letters please?

As rizla suggests the date of this defaul would not be considered acceptable. You would need to write a letter of complaint to cabot to say that the date of the default is unfair and not in accordance with ICO guidelines on filing a default. And ask them to remove it.

If that then triggers them to ask you to pay the debt then you would then need to send the statute barred letter to them as a seperate issue.

Someone suggested leaving it for a year to drop off. If you want to obtain credit before it drops off then I would certainly pursue getting this default removed first.

Tixy

LadyCava wrote: »

Hi! I wonder if anyone can help me with a current issue. My bank of 7 years, with whom I have a cuurent a/c and credit card, out of the blue cancelled my credit card with no reason. In fact, I was in credit with the card to the tune of £5.29! I have never defaulted on a payment to them and have paiff mortgage. I have regular amount going into current a/c which they recently upgraded to their best deal a/c. I had a default ( company went under and I couldn't who to pay) but that was over 7 years ago. Complaints dept at bank can't even explain why card cancelled. Has anyone had anything simikar and any advice on how to proceed would be gratefully received. Cheers

They are entitled to close your credit card account down if they wish. Nothing you can really do to challenge that.

It may be that the fact that you card was in credit could be the reason that they decided to close the account - its actually specifically against the terms of most credit cards accounts to have them in credit.

Or if you haven't used the card recently they may have cancelled it due to inactivity.

Best thing you can do if you want a credit card account is to try applying elsewhere.