Default showing after 6 years?

hebeallrusty

Hi all,

I have been helping my OH with her finances for the past few years and have used a few of the tips on the Website

Back in 2007, her then partner pressured her into taking out a number of loans with HFC finance which ultimately she couldn't afford to pay. All 3 of them defaulted at approximately the same time (Jan 2008). She has since paid off all of the loans and they now appear as settled or satisfied on her credit report

I was curious to see if these loans contained PPI and my intention was to try and re-claim it for her if they did. I sent HFC an SAR to see if this was the case.

HSBC wrote back saying that ultimately they were in charge of the account and supplied full statements for all three accounts free of charge.

I checked these statements against Noddle as we both like to ensure our credit files are correct. I have noticed that they have the date of the defaults incorrect on all three accounts with one not being listed as ever being in default. I have since done some research and found that after 6 years, accounts with defaults should disappear from your file.

Am I correct in this assumption that as soon as 6 years from the date of default has passed, the entire account disappears from your credit file regardless of if there were further payments made to the account after this date?

If this is the case, then who do I contact to rectify this - HSBC or the various CRAs?

I would attach the statements and screenshots from Noddle to highlight the issue however I am not allowed to post links despite being a reader of the forums for a few years.

forgotmyname

What is the exact default date on the credit file?

hebeallrusty

The default dates are as follows:


Loan 1 - None listed on Noddle vs default notice fee 31/01/2008 on the statement
Loan 2 - 31/03/2009 on Noddle vs default notice fee on 29/01/2008 on the statement
Loan 3 - 30/04/2009 on Noddle vs default notice fee on 08/01/2008 on the statement

On the statements, the only mention of default is as noted above

Hazzinho

Dispute on noddle with the date you have, they may have sold the debts, not unheard of for the debt buyer to wrongly change the default date.

happy_bunny_2

On the statements, it a notice of a fee for issuing a default notice? Or a default sum (usually £12)? These are very different.

Accounts should default within 6 months of no payments being made.

you need to complain, in writing to get this fixed.

Are you saying that in response to a SAR, HSBC just sent you statements for free? they need to be sending a lot more than that...

hebeallrusty

Hi all,

thanks for the replies,

As far as I can tell the debts weren't sold on as she always dealt with HFC. The letter she received back from HSBC with the statements says that accounts owned by HFC who also t/a Beneficial Finance and Household Bank, Endeavour Personal Finance and Sterling Credit Limited have all been transferred to HSBC as they are all members of the same group.

The statements only mention a "Default Notice Fee" and a charge of £50.00. There are a couple of "payment Reversals" and "Administration fees" and one statement even mentions a "Transfer fees to Balance"

The SAR that was sent was the template on the Reclaim your PPI section of the website. I added in a paragraph as we only had two account numbers and half of the third (I added in her previous address and date it was paid off)

The bottom two links from dropbox dot com hopefully should highlight what I mean (add in dropbox dot com at the beginning):

/s/vviixy7amabwweg/Loan2.pdf
/s/lp2vt7nh4jervpq/Loan2Noddle.png

forgotmyname

Balance brought upto date in August 2008? Would that clear the default notice?

Then arrears again until the default notice in March 2009.

hebeallrusty

I thought once an account was in default, a further default could not be issued on the same account and the only way for it not to be in default would be to pay the balance off in full?

hebeallrusty

After further review of the sticky, I think I have found my answer - the default should enable all of the account to disappear from them credit file.

My next task is confirming that the default notice fee that is listed on all three statements does actually constitute a formal default, in which case all three accounts should now be "invisible"

I'll raise a dispute with Noddle, then request the statutory £2 file from experian and equifax

happy_bunny_2

Not looked at your link yet.

But, that's a clear indication a default notice was issued.

If you didn't pay the amount stated by the date stated, then the account should have defaulted.

You can have a subsequent default notice, but only if you corrected the previous situation by paying the amount requested by the due date.

Don't bother with Noddle dispute, waste of time. you need to complain in writing to the people communicating with you about the debt HSBC? If they fob you off, which is likely, refer to FOS.

hebeallrusty

I've sent a letter to HSBC to highlight the discrepancies in the credit reports to their own statements and have requested that they correct her file or prove otherwise. I have told them that I am not desputing the legality of the Defaults as ultimately they were there because of nonpayment of the loan

As far as my OH says, she never paid the default in full as she could never afford it. She tells me she paid the penalty fees on subsequent missed payments and always arranged an amount to pay by direct debit.

If the dates on their statement are correct, then all 3 defaults should then be removed from her file for future creditors which should leave her file completely clean

Last year I persuaded her to get a credit card with a modest limit in order to prove to others things have changed on her credit file (as at the time I thought a default stays on the account for 6 years after the settlement date). She buys her petrol for the car on it using the card, and the full amount is paid off by direct debit each month. She now has over a full year of spending and met payments. These are the last three nasties on her report, so I would like to see them gone.