Loan default help!!

jade4939

I took out a loan in 2006 with Welcome Finance and I was silly with money and wasn’t earning a lot so defaulted on the payments not long after. I can’t remember the last date that I made a payment but it was definitely quite a while ago, most likely 2007.

I want to get rid of this debt and was all set to contact Welcome Finance to start making payments (I know it’s about time) but after reading a few posts on this forum, my understanding is that it may actually be statute barred. However, on my Experian Credit report the default date is showing as 20/12/2011. Is this a mistake or can they do that?

Is there a way I can contact them to sort this out without acknowledging the debt? They have not contacted me for a very long about this debt, I just want it off my credit report as it is having a negative effect on my credit score.

I hope someone can help. Thanks in advance.

Tixy

If the default date is much later than would be considered fair under the ICO guidelines then you can in theory challenge that date.

However any attempt to make contact to get the default date corrected will almost certainly involve you acknowleding the debt /or likely start a debt collector chasing you for the debt again.

So you probably want to make sure the debt is indeed statute barred before trying to query the default date.

Can you trace in your own records/bank statements to back to see when you last made a payment? Have you ever written to welcome or a debt collector in relation to the debt? if so on what dates?

jade4939

Thank you for responding Tixy. I have changed banks since then and unfortunately don't have the statements. I am almost certain that it will be more than 6 years ago since I made a payment. I am just confused by the 2011 date.

I'm not really sure where to go from here. Should I send some sort of letter questioning the debt on my credit report? I don't really know how it all works.

jade4939

And no, I haven't written to them about the debt. The last correspondence I received from them was from the Financial Services Ombudsman (or something similar) and it was a form to claim for PPI but I never sent that back.

Tixy

It is not unheard of for a creditor to enter a much later default than when you stopped paying.

If the credit file entry is in the name of a debt collector (rather than the original creditor) then it is not uncommon for them to inaccurately register a much newer incorrect default date. This is not allowed but does happen quite a lot.

You could send a variant of the prove it letter to state that you have seen an entry on your credit file but that you do not acknowledge the alleged debt and require them to provide proof of the alleged debt or remove the entry from your credit file.

Most likely that will result in them sending you some proof of the original debt, which may detail when you last made payment or something that will then be useful to help you determine that the debt is indeed statute barred.
Assuming you are confident with your debts you could send the statute barred template letter, and once they agree the debt is statute barred you could then send another letter arguing that the default date was entered unfairly late and not in accordance with the ICO guidelines.

Prove it letter (you would need to change quite a bit to say you have seen an entry on your credit file but include the 2nd para which states you do not acknoweldge the debt) Letter when you know nothing about about the debt - AKA "Prove it" letter

Statute barred information/ factsheets/ templates - Statute barred debts and the Limitation Acts

jade4939

The information on my credit file is in the name of the original loan company, not of a debt collector.

Thank you so much for your help. :AI shall give it a go.

happy_bunny_2

Some accounts on credit reports show detailed payment history. This might help, but can't remember if it goes back 6 years.

jade4939

Hi,

So I wrote to Welcome Finance disputing what was on my credit file, basically played dumb so they would send me details but they have just come back and asked for a copy of my credit file so they can investigate it further. Is this normal? Should i send it to them and how much should i send? Literally a screen shot of the part where it mentions Welcome Finance or the whole thing?

Can someone help please?

Thank you.

Tixy

Hi

No I don't think that is normal at all. Definitely do not send your whole credit file or anything at all that shows anything about other accounts / creditors etc.

I can't see why they are asking for this information, but equally I am not sure if it would do any harm to send it to them.

What details did you give them in your original letter? if you now live at a different address to the address when you took out the loan perhaps they are struggling to match it up?

Perhaps you could reply to tell them some of the detail of the welcome entry on your file, rather than to send them a copy of your file.

E.g. your address as shown in the the account section of your file as well as your current address, perhaps the date of the default date or the date the account opened?

fermi

Just a scan/copy/screenshot of the entry on your report is all they could possibly need. Or as said, just the details typed out, as if they are reporting on your credit files then they must have internal records themselves to support doing that.

jade4939

Hi Tixy,

I thought it was a bit strange. I have moved since i opened the account but they have my new address because the last time they wrote to me they sent it to my current address.

I think it may be that they are struggling to fmatch my record. I gave limited information so I shall reply with details of what it says on my credit file such as when the account opened and the default date as you mentioned.

Thanks again for your help.