removing 11 years of '6 months' delinquency markers

GlitterQueen_2

Hi,
I recently approached Equifax to remove delinquency markers on my credit file dated 2002 - 2013. To be clear, it came to light recently that for 11 years my credit file has been marked as being 6 months delinquent by Paragon for car finance account. No defaults have been registered. There is no CCJ. In 2014 Paragon has marked the file with 'U' markers each month. Experian has refused to cooperate despite the fact that I quoted guidelines referencing the use of delinquency markers on credit records instead of defaulting accounts. They say that a creditor may mark the file as they wish for as long as they wish while ever the creditor treats the account as being open and active.
I financed a car with Paragon in 2002. Later due to a number of factors I fell into financial difficulty. I worked with CCCS and arranged to pay a monthly token of £1 to Paragon. Eventually my situation became so bad I was made homeless. I wrote to Paragon explaining this and returned the car to them. The car was collected from a friends house. I never received any further correspondence from them (but then I didn't have a contact address). Now, I don't have any paperwork from 2002 to confirm the amount Paragon say is outstanding. After 11 years I really want to sort this out. I understand that after 6 years of me not acknowledging the debt (if it exists/is accurate) collection of it cannot be legally enforced however, the debt still exists. After all that what I want to know is
1. How to approach Paragon to be clear and confirm outstanding amount on agreement without admitting liability for amount shown on credit file.
2. How to guarantee all those delinquency markers are removed from my credit file and to stop further markers being added
3. To find out my rights and responsibilities for car finance agreements.
A friend of mine has suggested that returning the car in the situation I did means that I would only be liable to pay a maximum of 50% of the total amount due of the original agreement i.e. I would take 50% of the total due, deduct payments I already made and I would be liable for the balance.
If you can help me sort out this mess I would appreciate it.

Experian_company_representative

Others will advise on your options but let me just clarify that status U on an Experian credit report is not a negative indicator. It means 'unclassified' and can be used in a number of situations including where no payment is due, no other code is relevant or there is a dispute. If you'd like us to review your report and correspondence please drop us an email with details: uksocialsupport@experian.com

Thanks
James Jones

glamguide

Experian_company_representative wrote: »

Others will advise on your options but let me just clarify that status U on an Experian credit report is not a negative indicator. It means 'unclassified' and can be used in a number of situations including where no payment is due, no other code is relevant or there is a dispute. If you'd like us to review your report and correspondence please drop us an email with details: uksocialsupport@experian.com

Thanks
James Jones

Hi James, may I ask - I have a default on my callcredit account for quickquid, however on experian it shows as casheuronet llc with various "u" markers - why is it a default on one file and not on the other?

Tixy

Glitterqueen - as a starting point I would write to the creditor with a letter to say that you have noticed an entry in their name on your credit file, that you do not acknowledge any debt is owed to them and ask them to provide evidence of the alleged debt.
You may want to use some of the wording from the prove it letter - https://forums.moneysavingexpert.com/discussion/2607247

Depending on how they respond to that then your next step may well be to send a statute barred template letter and to say to them that a default should have been entered within 6 months of your ceasing payments/handing back the car and that therefore the entry should have dropped off your credit file by now and that they should therefore remove their entry.

Experian_company_representative

glamguide wrote: »

Hi James, may I ask - I have a default on my callcredit account for quickquid, however on experian it shows as casheuronet llc with various "u" markers - why is it a default on one file and not on the other?

I don't know to be honest but it sounds like you certainly need to query the information on your callcredit report as the default will hurt any credit rating calculated based on that.


James Jones

happy_bunny_2

GlitterQueen wrote: »

Hi,
I recently approached Equifax to remove delinquency markers on my credit file dated 2002 - 2013. To be clear, it came to light recently that for 11 years my credit file has been marked as being 6 months delinquent by Paragon for car finance account. No defaults have been registered. There is no CCJ. In 2014 Paragon has marked the file with 'U' markers each month. Experian has refused to cooperate despite the fact that I quoted guidelines referencing the use of delinquency markers on credit records instead of defaulting accounts. They say that a creditor may mark the file as they wish for as long as they wish while ever the creditor treats the account as being open and active.
I financed a car with Paragon in 2002. Later due to a number of factors I fell into financial difficulty. I worked with CCCS and arranged to pay a monthly token of £1 to Paragon. Eventually my situation became so bad I was made homeless. I wrote to Paragon explaining this and returned the car to them. The car was collected from a friends house. I never received any further correspondence from them (but then I didn't have a contact address). Now, I don't have any paperwork from 2002 to confirm the amount Paragon say is outstanding. After 11 years I really want to sort this out. I understand that after 6 years of me not acknowledging the debt (if it exists/is accurate) collection of it cannot be legally enforced however, the debt still exists. After all that what I want to know is
1. How to approach Paragon to be clear and confirm outstanding amount on agreement without admitting liability for amount shown on credit file.
2. How to guarantee all those delinquency markers are removed from my credit file and to stop further markers being added
3. To find out my rights and responsibilities for car finance agreements.
A friend of mine has suggested that returning the car in the situation I did means that I would only be liable to pay a maximum of 50% of the total amount due of the original agreement i.e. I would take 50% of the total due, deduct payments I already made and I would be liable for the balance.
If you can help me sort out this mess I would appreciate it.

This is obviously wrong.

As Tixy says, write to them and insist they remove the account from your credit file or prove its you owe the money.

Once they respond, post back.

GlitterQueen_2

Experian_company_representative wrote: »

If you'd like us to review your report and correspondence please drop us an email with details: uksocialsupport@experian.com

Thanks for your offer of assistance James. I may well take you up on that but can I just check something with you first? The Paragon account only appears on my Equifax report. It doesn't show on any other credit reference agency report. If you review my Equifax report does that mean you will amend my Experian report to show the same information?

GlitterQueen_2

I just want to say thanks everyone for your input. I'm in the process of composing a letter to Paragon and I've done some extra reading around on the internet.
Just to keep you up to speed on the Step Change Debt Charity website I read under the section What can creditors do?
"They can issue a default notice, usually sent after 3-6 missed payments. This is something your creditors are legally required to send once you have defaulted on the original agreement."

If it's a legal requirement why isn't a default notice recorded on my file? I mentioned in my previous post there is no CCJ either.

I understand that only Paragon may be able to answer these questions fully and accurately but I'm just trying to understand my situation.

Stepchange also note on their website that when you are sure the credit agreement is statute barred then a statute barred letter is the correspondence to employ and reading the definition of statute barred on the website, I'm sure.

However, that said, will a statute barred letter mean Paragon have to remove the delinquency markers from my file? which is what I really want. After all, if there is a debt, statute barred status doesn't write it off.

Any further thoughts appreciated

Tixy

Being statute barred does not automatically mean that an entry has to be removed from a person's credit file. The 2 are not directly related.

But you definitely have a case to get this entry removed.

A default should have been entered on your credit file within at most a year of you handing back the car and ceasing payments. Had they correctly entered a default on your credit file then the debt would have dropped off your file by now.

GlitterQueen_2

Tixy wrote: »

A default should have been entered on your credit file within at most a year of you handing back the car and ceasing payments.

Tixy thanks for helping me to get a grasp of the situation.
Which regulations govern the recording of defaults on a credit file? Is it a data protection issue?

Tixy

Yes, so it comes under the ICO. This is the current guidelines - Principles for the Reporting of Arrears, Arrangements and Defaults at Credit Reference Agencies

Will try to find a link to the older guidelines which are more relevant to your case due to the age of the debt (and better written) - http://webarchive.nationalarchives.gov.uk/20100428141142/http://ico.gov.uk/upload/documents/library/data_protection/detailed_specialist_guides/default_tgn_version_v3%20%20doc.pdf (thanks Fermi)

When I mention a year after you handed back the car, the year doesn't appear in the guidelines but I would think that is the absolute upper limit. I cannot see how they could argue it should be any later than that, even after taking in to account them selling the car and then sending you a demand for the remaining balance and giving you 28days to pay before they registered a default.