Help with Arrow Global false default

CreditHelpPlease

Hi MSE forums,


I need some help.


I am currently in the process of setting up a new ltd company and I am now at the stage where I need a business bank account so before applying I wanted to check my credit report as I don't use any credit facilities what so ever and haven't done for 10+ years.


When I opened my report (Equifax) there are 2 defaults on my file.


Default 1
Communications Supplier from Lowell Portfolio 1 Ltd
Current Balance £45
Default/Delnquient Balance £46 (£1 extra?)
Start Date 06/2008
Default Date 12/2009


This has me confused. From memory this is actually a mobile telephone mistake from a contract I had, in which I cancelled the contract and they mistakenly charged me for an extra month. At the time I quieried this with the phone company and they agreed and said the account was closed and that was that.


Will this default stay on my file now? I would nearly pay the bill as it is a relatively small amount if it would fix it rather than contest it but will this stop me getting a basic business bank account?



Default 2 (The nasty one)
Credit Card from Arrow Global Ltd (I)
Current Balance £420
Default/Delnquient Balance £420
Start Date 10/2002 (12 years ago)
Default Date 01/2010


This I don't understand. I have only ever had one credit card - I got it when I was around 18 (2002 sounds about right). I used it for around 4-6 months before loosing my job and defaulting on the payments (in 2003 at the very latest). I subsequently (from memory) paid this off over the next year or 2 but I haven't actually had a physical credit card in 10+ years so how could I have defaulted in 2010?


I don't have any paperwork from back then anymore, but even if somehow the debt wasn't paid, wouldn't it be statute barred by now (I just encountered this term today while reading up so appologies if my terminology is incorrect) I have had no contact with any DCAs or any credit agencies in at least 10 years.


These are the only 2 notes on my credit report. I have no CCJs or bankruptcies or anything else on there but it puts my credit score at 175 (very poor - Months since last payment problem/serious payment problem 57).




Is there anything I can do?
Does this mean no business bank account?


Any help would be extremely appreciated as I am not familiar with any of this really, I don't even want any credit with the business account, just an account to pay cheques into.


Many thanks for any replies.

Tixy

Hi

First instance - as it stands the default and debt will show on your credit file until Dec 2015.
Offering to pay won't get it removed from your file but would mean it was showed as satisfied.

I would dispute the entry with lowell (in writing) and ask them to provide evidence of the alleged debt or remove the entry from your file.
If they send some paperwork in relation to the debt, then you can challenge it and that the mobile co had informed you it was an error and no money was owed.

Second one - again I would start by writing to lowell and disputing the entry and asking for evidence of the alleged debt and default as shown on your credit file.

In terms of your bank account, realistically you probably won't get this sorted quickly. And this may prevent you from being accepted for a new business bank account in your limited company name, especially if you are the sole director/shareholder.

If this is the first time you have got your credit file for a while then you may well find lowell will write to you anyway about these supposed debts in the next wek or so. If they do then the prove it letter is the best first reply - Letter when you know nothing about about the debt - AKA "Prove it" letter

CreditHelpPlease

Thank you Tixy, I will look into contesting the defaults. It has me worried now about the business account, I have been awarded grants to start my business but they won't pay the cheques into a personal account so not sure what to do. Going to bring my credit report to the bank, explain the circumstances and ask for advice before adding any searches onto my credit report.

Hopefullly there is a basic business account I can apply for in Northern Ireland without any overdraft or credit facilities, it will be a credit only account.

chanz4

most banks do a basic business acc

Thrugelmir

CreditHelpPlease wrote: »

From memory this is actually a mobile telephone mistake from a contract I had, in which I cancelled the contract and they mistakenly charged me for an extra month.

Cancelling a contract does not necessarily stop the billing and you liability under the contract. As the provider will be contractually able to recover any payments due up until the end of the contract term.