CFO and Default

richieboy11

I have had a loan with CFO and agreed a repayment plan as I did not have the money to pay back on the due date, stupid I know and not a mistake I will contemplate making again! I have paid back the money owed and now a default has appeared on my Credit record showing a large outstanding amount. I am guessing this is for unpaid interest during the period of the plan. I think this is sharp practise and bordering on illegal. Any views anyone?

Tixy

Hi

Have you had a statement/letter from them confirming the balance is fully paid?

Or a recent statement showing how much was owed and you have since made payments to that amount?

Did they ever write to confirm they had agreed to freeze interest on the debt?

What is the date of default on your credit file? recent? or dated when you fell behind with repayments/entered a reduced repayment plan?

richieboy11

Hi Tixy

Point by point:

I have not had a letter confirming account paid as yet, I have asked and will chase again.

Yes, I had a letter confirming they would freeze interest.

The date on the credit file is after I finished paying the debt.

It feels as though they waited to issue the default until I had finished paying as they were concerned I would stop paying if a default was entered.

Tixy

How long ago did your first enter in to a repayment plan?

It is normal that a default would be filed if you are paying less than the minimum contract, but it should be dated 'fairly'. That usually means no later than 6months after you entered in to the repayment plan.

Once you have had a letter from them confirming the balance is paid, if your credit file doesn't then reflect that the default is satisfied (with no outstanding balance) then I would write to them to complain.

If the default is dated much later than when you entered the repayment plan or is dated after you made the last payment then I would also write to complain about that (referring to th the ICO guidelines on filing defaults is useful for this - ICO Guidance - Filing defaults with credit reference agencies)

Clive_Woody

I thought the default should be posted when you first defaulted (then the 6 year clock starts ticking before it is removed).

Tixy

Clive_Woody wrote: »

I thought the default should be posted when you first defaulted (then the 6 year clock starts ticking before it is removed).

ICO guidelines suggest usually after you are more than 3months behind and before being 6months in arrears. Although if you enter a repayment plan that will last more than 3months/enter a DMP/go bankrupt etc they don't need to wait the 3months.