Default - Mr Lender

altcant

Hi,

I'm looking for a bit of advice on a default marker I have on my credit file and the best way to try and get this removed or amended.

Bit of background first..

Back in 2011 I was a lot less sensible with my money and took out a few a payday loans with a couple of different lenders, one of them being Mr Lender. This was amongst a loan and a couple of credit cards I had.
I'm glad to say that I have been clear of all my debts for about a year now and I'm a lot more sensible. I really have learnt the hard way.

I recently decided to look at my credit file using Noddle and was surprised to see that I had quite a low credit score despite paying off all these debts. It turned out the reason being was that I have a default showing against my loan from Mr Lender.

I took out the loan in September 2011 and due to me not managing my money correctly I missed the October payment. This led to me having to arrange a repayment plan with Mr Lender from November 2011 which I stuck to until the loan was cleared in June 2012.

On my credit file I obviously have the missed payment showing against October but then for each month I had been paying the repayment plan I have a default marker showing. This even shows for June which is the month the loan was satisfied.

I spoke to Mr Lender directly on a couple of occasions and they said there is nothing they can do to amend. Therefore I contacted Noddle (Call Credit).
They contacted Mr Lender but also came back to me saying Mr Lender won't amend this and there is nothing further they can do.

As I'm looking to get a mortgage in the near future I'm scared this will affect my application.
Is there anything I can to do get these default markers amended or even removed?
Should this be showing as a default when I was sticking to the terms of a payment plan?
Has anyone had this same experience in the past?

Thank you in advance for any help you can provide

BugsyBrowne

Mr Lender put you on a repayment plan because you failed to pay them on time! What do you want your credit file to say?

Your mortgage advisor is not going to like what they see I'm afraid

altcant

Sorry! I didn't realise I'd get such an unconctructive answer!

I don't know how defaults work which is why I was asking the question. I never received a default notice so thought that it would show as something different. From a bit of research I've done on the internet I found you can have markers such as AP for plans such as this.

BugsyBrowne

altcant wrote: »

Sorry! I didn't realise I'd get such an unconctructive answer!

I don't know how defaults work which is why I was asking the question. I never received a default notice so thought that it would show as something different. From a bit of research I've done on the internet I found you can have markers such as AP for plans such as this.

I wasn't being funny but I expect without asking Mr lender what they have put on your credit files it's hard to understand what they have done.

happy_bunny_2

Its one default, just that the default status is reported each month.

It will fall off your credit report 6 years from the default date.

From what you say, you defaulted. Although you would need to check the terms of the loan to see what it says about defaults.

ICO guidelines don't really cover payday loans that well. You might not have been on an AP, simply came to an arrangement to pay the money back post default, to save court action.

Even with APs, mortgage isn't going to be easy.

versa3353

regardless of whether you did indeed miss payments and default, Mr Lender are required by law to write to you and inform you that they were placing a default on the account. this default notice letter should also give you a set number of days to rectify the account.

If you did not receive a default notice then you had no chance to rectify the account which is unfair.

I just got a default removed from my credit file - the default was correct in the sense that I missed enough payments however it was incorrect in the sense that I hadn't received a default notice which legally I should have.

Obviously I had to prove that I didnt receive the notice which I did by doing a subject access request which proved that the bank were mistakenly using the wrong address.

If they didnt send you a default notice you can have it removed by making an official complaint to Mr Lender.

Good luck

altcant

Thanks all for your replies.
I emailed Mr Lender rather than give them a ring, I forgot to mention that I had not actually received a notice of default though.

However, they have said they are now willing to change the marker from default to satisfied!
I'm assuming this is good but I don't really understand what this means for me and my credit file.
Can anyone advise?

altcant

Also versa, how do I go about getting a subject access request to prove Mr Lender did not send a default notice?

happy_bunny_2

Depends if they mean:

Mark the default as satisfied. Therefore default still present, just shows as paid.

Or

Remove the default and mark the account as satisfied.

I would clarify which of the above before wasting money on a SAR.

happy_bunny_2

The last option is the best by the way.

altcant

Just to give you all an update.

I kept emailing Mr Lender about this and the fact they never issued a Default Notice.

Must have been that they realised they hadn't and they contacted Call Credit and had the default markers removed and the loan updated as Settled.

I contacted Noddle and they confirmed this had happened and that my file had been updated. Great news!

One last question though, does this update all the other credit reference agencies too?