Omg - default registered on my credit file - is this alowed?

Danniella

Hi guys, please help - i'll try and keep it short,

Just checked my credit file and there is a default on there marked by Marlin Financial Services for £2,170 updated 1st September 2014. Status - default. In the details, it states 'date of default - 16.12.2010' which is correct. Let me explain:

I had an HSBC credit card in 2002 with a credit limited of £10k. I was made redundant in 2010 and i asked them if they would give me an interest free period of 3 months, they were fine. I then asked for a further 3 months (i was about to give birth), they said it was fine but then served a default notice on me owing approx £5k in December 2010. I was paying Metropolitan Collections every month who I understand are actually part of HSBC.

Last year, they sold the debt onto Marlin and nothing whatsoever was registered on any of my credit fiiles. It had simply disappeared which i was happy about. Marlin keep sending me letters asking if i would like to settle the debt for £500 less and they will mark my credit file 'partial settlement'. I have refused both offers (same letter about 3 months apart) considering the debt wasnt actually showing at all ln my file and my rating was perfect.

I randomly check my file this evening and there it is in all its glory, my credit file is obviously going to take a hit. I now have a 1/5 score on noddle

On the status history, it states 'D' for August 2014 and 'D' for September 2014. Is this right? Can they do this? Shall i phone them tomorrow? What shall i say?

We are applying for a new mortgage next year which has not been an issue since my credit files were brilliant but now, whats going to happen?

Any advice would be greatly appreciated.

Danniella

Sorry - it should have said 'allowed', not 'alowed'. I am usually a stickler for spelling and grammar but i was rushing my typing as i am worried and dont know what to do?

Thanks in advance.

NVRAM

"It had simply disappeared which i was happy about"

Yup because thats what happens when we don't pay back money we owe??

So they gave you interest free grace and then defaulted you anyway? And you didn't take this up at the time?

Sorry but even if it wasn't registered as a default it woudl still be noted somewhere as a large chunk of money you owe out and haven't paid off.

Your mortgage application may well be impacted by this so yes get ont he phone to them ASAP and figure out what you need to do. If you are planning on getting a mortgage next year then I assume you have a large deposit ready to go? Why wasn't this used to first off pay debt?

tberry6686

I believe that what Marlin have done is wrong and the default should be from when the original account holder sent the default notice so Dec 2010. Companies cannot just change the date of default to suit themselves.

Will it have an impact on your mortgage application - probably but not as bad as a recent default will have.

I dare say someone with more knowledge of this will be along to correct any mistakes I have made and offer further advise

bargainbetty

You can apply for the default to be correctly dated, but if you were served with the notice and did in fact default on the payments, then you don't have much of a case for full removal.

If you have been in an agreed payment plan, then that also could be marked on your file - you could ask that it be checked properly.

Never hurts to ask, but I would strongly recommend getting the debt sorted if at all possible.

UsetheFORCE

Just checked my credit file and there is a default on there marked by Marlin Financial Services for £2,170 updated 1st September 2014. Status - default. In the details, it states 'date of default - 16.12.2010' which is correct. Let me explain:

The first paragraph states that the OP confirms that the default date is correctly listed.

Unfortunately, you got lucky that the default wasn't being noted on your file.

The only option now is that you approach Marlin and offfer to settle, in FULL and ask that as a condition would they please remove the account from the records of the CRA. Lay it on about the effect on you regarding a Mortgage and so on..., they will say they can't but they can! The only bargaining chip you have now is the money that they want!

If that fails then settling in full would be better than doing nothing but it is almost certainly going to cost you a lot more for a Mortgage, assuming you can get one!

The only consolation is that you have already gone 4 years with the default, it will be removed from the records in December 2016.

Regards

Danniella

NVRAM wrote: »

"It had simply disappeared which i was happy about"

(I was happy about this because HSBC originally put the default on the file in 2010 but when we approached our bank earlier this year for mortgage purposes, and informed them of the default, it simply wasn't there on any of the credit reference files)

Yup because thats what happens when we don't pay back money we owe??

(I have never denied the fact that I owe them money)

So they gave you interest free grace and then defaulted you anyway? And you didn't take this up at the time?

(No, I didn't take this up at the time with them as I had just given birth to a baby girl who had several severe medical needs and she was more important)

Sorry but even if it wasn't registered as a default it would still be noted somewhere as a large chunk of money you owe out and haven't paid off.

(I got all of the credit reference files and it simply was not on any of them)

Your mortgage application may well be impacted by this so yes get ont he phone to them ASAP and figure out what you need to do. If you are planning on getting a mortgage next year then I assume you have a large deposit ready to go? Why wasn't this used to first off pay debt?

(yes we have a decent sized deposit and the proceeds of our house when sold but in answer to your question, this deposit has only been built up over the last couple of years when I have returned to work)

tomtontom

In May you were going to pay off this debt. Any reason you did not?

Danniella

tomtontom wrote: »

In May you were going to pay off this debt. Any reason you did not?

In May? Sorry i am confused.

Danniella

tomtontom wrote: »

In May you were going to pay off this debt. Any reason you did not?

Initially spoke with Marlin who confirmed that they were now the new owners however, lady told me that she couldnt give me the exact figure owing since they had not received all of the payments i had made. She told me it could take between 4-6 weeks to receive all the payments through and to ring back then. She said until then i was to make all payments directly to them and provided me with their details. Stupidly i didnt ring back after the 6 week period - i just carried on paying. At that time, i checked my file and there was nothing there, not from Marlin or HSBC.

Now from the way Marlin have reported it, it looks as if i defaulted in both August and September this year, even though it does state that the default date was December 2010.

Danniella

I spoke with our bank today who said i really shouldnt worry about this, the fact that it is an old default and the fact we have an excellent account with them. She doesnt see it as being a problem but she is going to double-check and call me back tomorrow.

I would like to believe this but i am not sure.

I guess the best thing to do is to call Marlin and ask them, if i pay in full, will they please take it off?

There is nothing else on any of the other reports which present a problem. We are so close to getting this new mortgage (a bigger house for us all as we have totaly outgrown this one) and i dont want anything to cause us a problem.