Wrong date of defult recorded on my CF

John_Bains

Can any one help.
I ran into some difficulties with MBNA in 2011. By January 2012 they applied for a CCJ. In march 2012 we went to court and the judge found in there favour ordering me to pay £6000 immediately. I paid within two weeks of the Order. Despite this MBNA registered a default in my credit file in November 2011. In 2011 the default was in dispute and my case was being investigated by the FSA.
I believe that there should not be an entry on my credit file as I paid the debt off in full within two weeks of the court judgment. Until that time any amounts owed was in dispute and should not have resulted in a default on my credit file.
My original debt with MBNA was around £1500. It increased after they failed to pay out on a PPI policy when I lost my job and because MBNA and there appointed solicitors added unreasonable charges to the debt. In the end I paid £6000 to clear the debt. I have always felt there is something wrong with how this case was dealt with. I lost my Job due to illness and MBNA refused to pay on the PPI Insurance. In addition MBNA continued to charge the PPI premiums even after they knew i lost my job and CAB wrote to them and all my other creditors informing them of my financial difficulties. The PPI premium kept being added to my debt and the interest , late payment charges and solicitors fees ended up at over £4,000 in less then 9 months on a original debt of around £1,500. Their appointed Solicitors Reastons Solicitors suggested I should sell them my house to pay back the debt and they would allow me to rent it back from them or it was likely to increase substantially when they added there charges. There was no reason why a Judge would find in there favour but by Magic a judge did. Facts backed by third parties ( CAB, FSA) were:
1. PPI was miss sold to me
2. PPI costs exaggerated the debt
3. Charges on the account were unreasonable
4. I had carried on making minimum payments while the account was in dispute ( Organised by CAB)
5. At the time of going to court I had a new job that would allow me to pay back the debt in 3 months. In the end i took a loan out from my new job on account of hardship to pay the debt and my employer took their money straight from my salary.
Thanks for your help

ALIBOBSY

Did you reclaim the PPI at any point? I am just thinking if you reclaimed the PPI and it pays out more than the default figure you could use that to argue against the default.

Normally if a CCJ is obtained they remove the orginal entry and change it to the CCJ, and as you say if paid within 28 days you can ask for it to be removed. I suspect that in this case the credit file never got updated and they left the original entry.

So I would say you need to complain to the original creditor on the basis that had the CCJ been correctly registered on your file, it would then have been removed when you paid. I wouldn't bother going into any of the rest of the details as from their POV the court made the judgement and thats it.

I would separately claim the PPI as well-don't use a claims company, you can do it yourself.

See what they say about your complaint and then you can reassess. I would do any complaints in writing as they will fob you off to get rid over the phone.

Good Luck

Ali x

fermi

CCJ should have been removed from the file if paid within 2 weeks. If it's still there you can ask the court to remove it on proof the CCJ was paid within one month.

The default is a separate report entry, and is not affected by the CCJ, so stands on it's own merit regardless of what happened with the CCJ.

If you believe the default is wrong in principle, or technically inaccurate, you can complain and take it to the ICO and FOS if you get no resolution.