Credit rating affect by default caused by direct debit

toppersport

Dear Everyone,
I'm in a really tricky situation and wondered if anyone had any advice. I have a default on my credit record, which I have only just found (although is 3 years old now) which relates to the fact that a direct debit was cancelled. I should have noticed it, but there were a lot of things going on in my life at that time.........still.....
I have now accepted the default but am trying to find out why my direct debit was cancelled as I am adamant I didn't. I found out that the Loan company used AUDDIS to submit their direct debits to their customers' banks. This means that they can access reports via bacs which will give the reason why my direct debit was cancelled and then I can claim compensation and possibly negotiate the default. Problem is that the Loan company seems very reticent to give me the report which makes me highly suspicious and my bank claims it can't help me either- does anyone have any advice how I could get this information from the Loan Company? I have tried the Ombudsman service where an adjudicator took on my case but because it has dragged on for so long it has had to be closed so I'm not sure what my options are. I am begrudged to accept another 3 years of bad credit history when I not feel it is entirely justified. There is more to this story- but trying to keep it shorter than it otherwise would be!!! Any help, greatly appreciated and thankyou in advance......

Gold_bullion

Firstly, are you saying that for 3 years you didn't notice you weren't making any repayments on this loan?

Did the loan company not contact you and ask why your D/D had been cancelled? They would normally do this several times before placing the loan in default.

What are the bank saying was the reason the D/D was cancelled? You say they are saying that they "can't help", but if one of your D/Ds is cancelled they must give you a reason why - either you cancelled it (in which case they will have a record of you doing so) or they did accidentally, in which case it is their error, although even then I doubt they'd be liable for any of the missed payments - you might get some ex-gratia compensation though.

I would be pursuing the bank for the answer as to why the D/D was cancelled, then if it turns out to be their fault expect the bank to contact the loan company, explain their error, and see whether the loan company will remove the default, assuming you agree to new terms for repayment. The difficulty is the timescale that has passed as it's going to look as if you have been avoiding payment.