Wrote letters to Creditors Advice

naff123

Hi people


I am starting to get my finances in order with my first debt set to be cleared at the end of the month after 3 years of plugging away!


Having seen the damage done to my credit file I noticed a lot of DCA have been filing Defaults without sending me a copy which if my knowledge is correct breaches the Consumer Credit Act 1974 s.71?? (correct me if quoted wrong bit)


any way I have wrote to every creditor which has done this (6 in total despite me making payments they agreed initially) I have had responses from Lowell saying that they did not submit the default the original creditor did but they are putting their name on it and are not able to provide me with further information what can I do on this? Basically they are putting to Experian they filed the Default but yet they are telling me they are not it was in fact the original company. But because they are a telecom provider they do not comply to the Consumer Credit Act so do not have to provide me a default notice??


What are my rights as they couldn't tell me, they said they do not simply know.

sourcrates

A default notice is a formal letter sent to you by a lender or creditor if you are in arrears with your account. Creditors and lenders are legally obliged to advise you formally in writing that you have missed payments.


A default notice is formal notification from a creditor or lender that you are in arrears. Default notices generally stay on your file for six years or so. It can be hard to get credit once you’re in this situation and it can impact on other areas of your life, so it’s essential to deal with it as a priority.


If you have taken out a personal loan or credit card in the UK, it should be regulated by the Consumer Credit Act 2006. You can find out if your agreement is regulated by looking at the small print of the agreement itself or contacting the creditor.


To the best of my knowledge a telecoms contract is not regulated by the CCA 2006.

naff123

So if they are not regulated but issue a Default notice that affects my credit file what are my rights to dispute it? As also BT issued a default notice when I worked for them receiving Employee services (not paying for broadband etc)

sourcrates

Quite a few organisations that share customer information through the credit reference agencies are not covered by the CCA so don’t issue default notices at all. Mobile phone agreements are an example. Usually, though, you should still be told before a default is placed on your credit report and, if possible, given the opportunity to get your account back into order.


You can formally dispute it, you need to write to the CRA that the default appears on.

National_Debtline

Hello there,

As Sourcrates has mentioned, there are plenty of debt types which are not regulated under the Consumer Credit Act which may appear on a credit file. The contracts that you enter into (such as an airtime agreement for a mobile telephone for example) should make clear that your credit file would be at risk through non-payment or late payment. Generally speaking, you would need to raise your concerns with the company that has placed the disputed information on your credit file although you can approach the credit reference agencies too - they would often (at the least) allow you to place a notice of correction on your file.

I must add that it can be incredibly difficult to remove information like this unless there is a valid reason why the information is incorrect.

Very best wishes,

David @ National Debtline.