Welcome Finance credit report

jam_the_man

I have just viewed my credit report today and have seen an old credit agreement with welcome finance. I took the loan out in early 2008 and could only make a couple of payments before getting in to difficulty. Long story short I put the loan to back of my head and moved away and heard nothing more of it and buried my head in the sand.

What I am confused about is why it is still classed as being in arears and not as defaulted as no payment has been made in so long. I also noted that the report has been updated in the last month. As I live in Scotland I believe it will be statute barred in the next few months and was wanting advise on if it should have been defaulted a few years ago.

fermi

Yes, it should have been defaulted. Arguably within 6 months of of the breakdown of payment to welcome, or when arrears exceeded 3 months worth of payments.

Showing it still as x payments (6?) in arrears when that is not an genuine reflection of the account history and status is reporting inaccurate information to the CRAs, and so a breach of Welcome's duties under the DPA.

Seems to be a habit of Welcome and a few other firms:

For example see: https://forums.moneysavingexpert.com/discussion/comment/54477577#Comment_54477577

Also see ICO guidance on defaults.

https://forums.moneysavingexpert.com/discussion/3172602

For example, but not limited to these parts.

A record showing a series of payments as six months in arrears when this does not reflect the real payment history should not be used as an equivalent of a default.

• Accounts should not be routinely filed as being in default where full payments or those due under a rescheduled agreement are fewer than three consecutive months in arrears.
• Accounts should normally be filed as being in default where those payments due have not been received for six months.

jam_the_man

Thank you for your help. What you have said about the 6 late payments is exactly what they have done. Should I hold out till it is statute barred then request it to be changed or should I action it now?

I am still not in a position to pay off this debt as I went back to University so am unable to afford it and cant ask anyone for help either.

fermi

Unless you have an overriding need to sort it now, you may want to wait until you are sure it is statute barred?

If you are not sure, then contact National Debtline freephone on 0808 808 4000 for the opinion of a professional debt advisor.