Confused over default on old loan!

confuseddave

Hi guys, I'm hoping someone can give me a bit of advice here.

I've read a lot (and I mean a lot!) of posts on here regarding statute barred and defaulted accounts. However I am still slightly confused over my own personal circumstances.

I recently decided to check my credit file and was surprised to find it was mainly empty, not showing reference to any of my existing credit (credit card, overdraft etc) and instead only showing 1 mobile phone contract (cancelled last year but was up to date) and a loan dating back to 2004.

The loan in 2004 was for approximately £8000. In 2005 I was made redundant unexpectedly, found another job and just before starting that job the company went in to liquidation leaving me unemployed for the first time in my life. Despite having PPI, I was told that I wasn't covered as I had not worked for the company for over 12 months. I ended up defaulting on the loan and the last payment I made was on the 1st of August 2005.

When I checked my credit file recently, there is an account showing as starting on the 12/08/05 under MKDP LLP who I am guessing are the debt collection agency that must of bought the debt with a balance of £5888. They have then entered a default date showing the 1/1/2010.

Am I right in thinking this account is now statute barred? I live in Scotland if that makes any difference. Likewise does this mean that despite not paying on the account since Aug 2005, that the default will stay on my credit record until 1/1/2015?

I'm not particularly bothered if it has to stay on until then as I have no need or intention of getting any credit between now and then, I'm more just curious as to why the default date is nearly 5 years after the last payment.

Any help or advice is most appreciated.

happy_bunny_2

Statute barred after 5 years, unless you acknowledged debt in writing within 5 years since last payment?

Send them the SB letter. In Scotland, debt no longer exists.

Likely DCA changed the default date to try and get money and avoid SB. Send them SB letter and tell them to correct the default date or you will refer to FOS.

They are wrong to change date as not allowed, but they do it.

confuseddave

That's great, many thanks for your help.

I wasn't sure if it was worth sending a SB letter or if I would be opening a can of worms and better just waiting for it to drop off.

I've not heard anything in relation to this debt for many years although I noticed on my credit report it says it was last updated in July.

happy_bunny_2

Yes, send the SB letter.

No can of worms, as in Scotland the debt is extinguished therefore no longer exists. Unlike England, where they can ask you to pay but you don't have to.

Don't sign any letters. It's up to them to prove why not SB and some DCAs tend to make up payments. But they will need to prove it was from you.

confuseddave

Incidentally, I meant to say that there has been no payment or acknowledgement since the last payment on the 1st of Aug 2005 as I sought financial/legal advice at the time and was told specifically not to.

happy_bunny_2

confuseddave wrote: »

Incidentally, I meant to say that there has been no payment or acknowledgement since the last payment on the 1st of Aug 2005 as I sought financial/legal advice at the time and was told specifically not to.

Sounds good and well SB

confuseddave

Just wanted to post a quick update.

I contacted MKDP LLP by telephone and politely explained that they had placed inaccurate information on my credit file and that I would like it corrected otherwise I had been advised to contact the FOS. Told him that they had the loan start date as a date after the last payment was made on the account, and that also the default date was incorrect as it was just under 5 years after the last payment. I also pointed out that the debt was extinguished under Scottish law in 2010.

The gentleman on the phone was very courteous and helpful and said that they would have to look in to it and would be in touch.

Received a telephone call this morning to say that they were sorry about the mistake and that they would update the dates on my credit file and that it should drop off overnight once done. Have to allow 7 days from today for them to do this and said they would confirm in a letter.

That was a lot easier than I thought it was going to be. Thank you so much for your help!

happy_bunny_2

Great result. Thanks for the update.