Double default?

emmmski

Hi,

I went into a DMP in 2005 , subsequently defaulted on all my cards loans etc, since starting the DMP ,all have been paid on time ,albeit smaller amounts.
I ordered my credit file and found that one of the companies, Cabot had defaulted me in 2010. The original debt was with creation finance. I assumed creation had sold it on but couldn't understand why the default was 2010 as by that point the DMP had been ongoing for 5 years without any hitch..... Seemed strange.
Today whilst clearing out some paperwork I found my credit report from 2009, the same account shows on there but still under creation finance. However it shows me in default in 2005.
Is this standard practice? For the company to default you and then the DCA they sell the debt on to do so several years later.
Do I have a case, appealing to cabot to remove the default?
Advice always appreciated.

matttye

You don't just "have a case," Cabot HAVE TO remove the default. They're not allowed to redate it.

Complain to Cabot and, if you don't have a satisfactory response within 8 weeks, you can complain to the financial ombudsman service.

You'll most likely get a small amount of compensation too.

happy_bunny_2

As said, complain, in writing, signed for.

Don't bother ringing as they will just fob you off, can't do this easily if you write.

For interest, have a read of this:
http://www.ico.org.uk/for_organisations/sector_guides/~/media/documents/library/Data_Protection/Detailed_specialist_guides/default_tgn_version_v3%20%20doc.ashx

emmmski

Thank you both, shall complain to cabot.

emmmski

Hi,

I have finally received an answer from Cabot. They state that they took the account on in 2011 and according to their records the default was put on by creation 2010. So in their opinion, case closed. Unless I have documentary evidence.
I do have a copy of both my experian and equifax credit reports from 2009 that show the default date under creation as 22/09/05. Will this suffice as documentary evidence? Or are they looking for the actual notice of default from 2005? ( which I don't have).
If they will accept this and re-date the default, who do I go after for possible compensation as the default should have been gone for two years. Which has had a negative affect on my credit rating? Is it creation? Or Cabot?.
As always advice greatly appreciated!!!

rizla_king

Yes that is good evidence. :T Send them copies of that and tell them that they must correct the information on your file, and that you will not accept any more excuses from them. Tell them that you'll also be taking the case to the FOS for compensation for Cabot recording false information on your report for 2 years so you demand that Cabot provide you with a final response.

emmmski

Thank you, here's hoping it gets removed and a little bit of compo wouldn't go a miss either!!

emmmski

Hi,

Just an update regarding this saga. I finally have an adjudicator from the fos. He is asking me for any evidence of actual financial loss due to cabot wrongly defaulting me all this time. I'm finding it difficult to respond. I have some evidence of previous credit searches , where I have been unsuccessful obtaining credit, but as you are never given a specific reason by a company for a refusal, is this enough? I can add that at the time of the application this default was the only one on my account, I was on the electoral roll and had been for around 4 years, had no ccjs , was in employment with same company for 10 years. So I know these are all positive factors but again will it acceptable?
I can't think how to quantify the financial loss. I know it will have had a negative effect of my credit rating, and as a result I haven't wasted my time endlessly applying. I was accepted for a Capitol one credit card but with a high apr , again most likely owing to the default but I cannot prove this.Does anyone have any suggestions how I was put this across to the fos? Without an actual figure of "loss"?
As always any guidance gratefully received.

happy_bunny_2

Your info sounds good, but to some extent the loss is only part of the issue. emphasis the 'only default' bit and if the rest of your report is squeaky clean (no late payments etc) you could mention that too.

If you have a credit card balance and say 20% APR, and you reasonably assumed you could get a 0% card, then you could suggest the balance between the 2 until the default is gone could be your loss. As you say, you can't prove it, but the question is probably written by someone who really isn't qualified to do their job.

The rest of the argument is its wrong in accordance with the guidelines.

emmmski

Just a quick update re this case.

FOS have replied, they have found in my favour which is excellent news. cabot have removed default. FOS have recommended that cabot pay me £100 compensation , but they have refused saying that they simply reported the facts to my credit file as given to them by creation so if anyone should compensate me it should be creation.
The case will now be reviewed by an ombudsman so we'll have to wait and see........
Just thought this update may give hope to those trying to fight incorrect defaults, they can be removed!! Not holding my breath for the compo tho!
I wouldn't have even known what to do or how to argue this without you kind lot on MSE so a huge thanks. You really helped me. :-) :-)

fermi

Typical Cabot. Full of it until the end.

At least the important thing is sorted.