Defaults on Credit File

Tixy

Scootymad wrote: »

Ah, so defaults will drop off 6 years from the date that they went on to the account, not 6 years from when they are settled?

What happens if they remain unsettled after the 6 years?

After 6 years even if the debt is not fully paid the default and the whole record of the account drop off your file (you obviously still owe the money though it just cannot be seen from your credit file)

Scootymad wrote: »

This also raises another question... this month a new default has appeared from a company called Arrow Global LTD. Judging by the amount they say I owe, they have taken over a debt from another company. Problem is, there was a default on that account for about 3 years... but they have taken it over and the default start date is showing as this month! What can I do about this, as I don't know the exact date the account went into default?

They must use the same date the original creditor used on your credit file, they are not allowed to redate it. Is the original creditor entry for this debt still on your file?
You will need to write to arrow and state that you notice they have added an account to your entry but have incorrectly and unfairly entered the default date as the current month. Tell them you require them to correct the entry to reflect the actual history of the account or to remove the entire entry from your credit file.

Buzby

Arrow Global act for Orange, so check this is not the same default duplicated. It can only be listed once.

Scootymad

Tixy wrote: »

After 6 years even if the debt is not fully paid the default and the whole record of the account drop off your file (you obviously still owe the money though it just cannot be seen from your credit file)



They must use the same date the original creditor used on your credit file, they are not allowed to redate it. Is the original creditor entry for this debt still on your file?
You will need to write to arrow and state that you notice they have added an account to your entry but have incorrectly and unfairly entered the default date as the current month. Tell them you require them to correct the entry to reflect the actual history of the account or to remove the entire entry from your credit file.

I have just spoken to someone who has advised me to contact them, using ignorance to my advantage and demand a copy of the original credit agreement, and if they cannot provide this, demand the debt to be removed from credit file.

There is also nothing about the previous company who had the debt showing in my closed accounts on my credit file.

Buzby wrote: »

Arrow Global act for Orange, so check this is not the same default duplicated. It can only be listed once.

I doubt it would be for Orange, as I have NEVER owed them £677! I have a mobile account with orange, but it has always been up to date!

Tixy

Scootymad wrote: »

I have just spoken to someone who has advised me to contact them, using ignorance to my advantage and demand a copy of the original credit agreement, and if they cannot provide this, demand the debt to be removed from credit file.

There is also nothing about the previous company who had the debt showing in my closed accounts on my credit file.

I doubt it would be for Orange, as I have NEVER owed them £677! I have a mobile account with orange, but it has always been up to date!

Who was the advice from? a professional debt advisor or someone else?
Do you know what the debt relates to? Is it a debt covered by a credit agreement (if its a phone contract or an overdraft for example it would not be).
The only official way to request a copy of the credit agreement is to do so in writing (lots of CCA templates around if you search) and to enclose the £1 fee that the creditor can charge you under the consumer credit act.
Courts have decided that even when a company is unable to provide a valid consumer credit agreement that does not necessarily mean that a default should be removed from your credit file.
If you want to actually dispute that the arrow entry relates to a debt of yours then the letter to send would be a prove it letter. Asking them to prove you owe the money and prove they have a right to collect it. This is not a CCA request.

There is also nothing about the previous company who had the debt showing in my closed accounts on my credit file.

When arrow purchased your debt from the original creditor they will have agreed to either let the original creditor continue to report and arrow not to enter anything, or for the original creditor to entirely remove their entry and arrow to add an identical entry but with their name at the top instead. The ICO guidance states that the default date must not be changed when this happens, and that is the area I would focus on challenging at this stage.

Scootymad

Are they not legally required to inform me of the change in company taking on the debt?

Tixy

They should send you a notice of assignment or equivalent letter informing you.
If the entry has just gone on your file then you should get such a letter in the next couple of weeks.

When you get the letter at that point if it doesn't detail what debt it relates to, or if you don't believe its your debt then I would request proof of the alleged debt.