Disputing a default

wafflefaffle

Hi guys,

I wondered if someone could shed some light!

I had a loan around 7 years ago for a period of around 5-6 years. This was from MBNA. It was paid on direct debit and it come out each month. I never really paid any attention to it. It would just pay each month and I didn't need to do anything. It was only a low amount too of £25 so nothing that stood out a mile.

A few months ago I received a letter from a debt collector for the overdue amount. I had no idea at first what it was for until I did my investigations.

As it turned out... Around 10 months previous MBNA had sold the loan to Moorgate Loan Servicing. I was not informed at the time at all by either MBNA nor Moorgate of this loan selling/transfer. Apparently they are meant to (?). Opon them selling the loan they failed to carry on taking payments from the direct debit (that is still sat there active). Like I said, the direct debit was just automatic and sat there and I didn't pay attention to it so a) I didn't notice them stop taking the money and b) even if I had noticed so much time had passed I would have assumed the loan had come to an end anyway.

As soon as I was made attention to the this matter I immediately settled the full amount. But having the loan only 'settled' on my credit report is not good enough.

Me and my partner are due to buy a house next year and my wage and application matter a great deal as I'm a big earner. My credit score and rating has jumped from being "excellent" to poor by every credit agency due to these 10 records of default filed by Moorgate. My credit report is very good otherwise.

I've written to Moorgate and awaiting a reply off them but what kind of hope do I hold out for this do you think? Our whole future plans rest on this and it's soooo worrying!!

The selling of loans from MBNA to Moorgate must have been a big thing as there's a whole section on Moorgates website about this that specially says that a) if a direct debit is already in place with MBNA you don't need to do a thing - they will carry on taking the money and b) Both Moorgate and MBNA will write to all their customers notifying them of the changes but they haven't!

I understand that if writing to Moorgate fails then I can go to the Ombardsmun afterwards (?). Has anyone had much success with this and do you think they will see in my favour.

Thanks for listening!

matttye

Write to your bank and ask them to confirm in writing how the direct debit was cancelled and who cancelled it.

If it says it was cancelled by MBNA, then you have strong supporting evidence that you've done nothing wrong, especially as Moorgate says you need not do anything!

wafflefaffle

Hi!

Thanks for replying... That's the thing, its not even cancelled! It's still sat there active waiting for them to take the money out. I'm guessing at the point where MBNA sold the loan to Moorgate they failed to carry on taking the money.

antrobus

wafflefaffle wrote: »

...I had a loan around 7 years ago for a period of around 5-6 years. ...

I'm puzzled. A loan with a 5-6 year term taken out around 7 years ago would have been paid off in full by now.

Something else must have happened surely?

wafflefaffle

Oh don't take my figures as literally sorry. They were complete guesses but I can see that they don't add up and should have guessed with a few more numbers that made sense.! The point is that the loan hasn't finished but the company sold the loan and then stopped taking the direct debit and I hadn't noticed or realised. By estimates were just to show this was a long time ago.

matttye

wafflefaffle wrote: »

Hi!

Thanks for replying... That's the thing, its not even cancelled! It's still sat there active waiting for them to take the money out. I'm guessing at the point where MBNA sold the loan to Moorgate they failed to carry on taking the money.

In that case, ask the bank to confirm in writing the direct debit has never been cancelled, which again gives you evidence of no wrongdoing

wafflefaffle

I have that at hand and banged that in the disputed letter to moorgate I guess that even though it looks good in my favour I'm still scared that something as trivial as this can affect our future so much. A bit nervy!

McKneff

And when you get it sorted, demand some sort of compensation if they have done things wrong

matttye

wafflefaffle wrote: »

I have that at hand and banged that in the disputed letter to moorgate I guess that even though it looks good in my favour I'm still scared that something as trivial as this can affect our future so much. A bit nervy!

I had about two years' worth of late payment markers removed from my credit report recently.

What happened was that I had gone into my bank and paid what I owed them + the following month's interest. I was promised by the staff member that no further interest or charges would accrue. The following month, interest of £1.xx accrued and I failed to pay any money into my account. When I got my bank statements in the post, I stupidly ignored them because I just assumed the account would have a zero balance based on what I'd been told.

I had no written evidence of what I'd been told other than the fact that I had paid in a very specific amount (EXACTLY what I owed them + the following month's interest).

The point of my story is that I did not have written evidence of what I was told but I was still able to have the adverse information removed and I received compensation of £50.

I think you are in a stronger position and will have no problem getting this sorted out

wafflefaffle

thanks Matttye! That gives me confidence! Its just one of those things where even though things may be in my favour because there's so much riding on it I can't help but feel sods law may come into play

happy_bunny_2

Give Moorgate as much evidence as you have. As if you need to refer to FOS than can take 3-12 months or longer. Make sure they are in no doubt you will refer to FOS as I have complained to them and they can try and mess you about a bit. Deal in writing only, signed for where you need to.

Moorgate have been hoovering up loans, they bought all Egg loans in about 2011.