Incorrect default recorded on my credit file!!

nothingwitty

I took out a loan with Welcome Finance in 2005. By June 2006, my financial situation had improved and I took out another loan (from another company) at a much lower interest rate, using the money to settle my Welcome Finance loan.

Two weeks ago I discovered that Welcome Finance registered a default on my credit record for £250, the balance of the settlement figure. On contacting Welcome Finance, they claimed that it was Experian’s computer system which had incorrectly recorded the default – they also sent a letter to this effect. I spoke to Experian who denied any responsibility and put the error at the feet of Welcome Finance. I went back to Welcome Finance and they then accepted all responsibility.

They have corrected my credit file and removed all traces of the default.

However, since June of last year I had been finding it difficult to get credit and could not understand why. I had access to my credit file but it never showed the alleged default until about a month ago. I have asked Welcome Finance for compensation as my understanding is that they have breached the Data Protection Act as well as the Consumer Credit Act. They have said I must prove why I have incurred financial loss as a result of the default. The thing is, I can’t prove it. What I can show is that I have been declined credit and that it is most likely due to the default as all of my other accounts are in order. Any advice as to what I should do? I am :mad: that I have had to spend hours sorting this out when there was no fault on my part.

Thanks for any help!

Emmzi

If you cannot demonstrate an actual (not potential) financial loss, then there is nothing in law for them to compensate you for.

Sorry, I think you need to swallow this one.

nothingwitty

Thanks for your help Emmzi,

I understand what you mean. However they, by their actions, have resulted in my being turned down for credit, which led me to making other applications, which further affected my credit rating. In the end, ironically, I had to take a loan out again with Welcome Finance, paying 40+% interest!! Had the default not been there, I could (though cannot prove) have gotten a better deal.

In any case, my anger is at the amount of time and effort I have had to put in to get the matter resolved. Do we not have any rights as to how companies record and disseminate information about us?? I have been trying so hard to fix my credit rating and then discover it was all in vain...

dramaqueen1973

HiyaI still have nightmares about Welcome Finance!!!!!!

butch_dingle_2

nothingwitty wrote: »

I took out a loan with Welcome Finance in 2005. By June 2006, my financial situation had improved and I took out another loan (from another company) at a much lower interest rate, using the money to settle my Welcome Finance loan.

Two weeks ago I discovered that Welcome Finance registered a default on my credit record for £250, the balance of the settlement figure. On contacting Welcome Finance, they claimed that it was Experian’s computer system which had incorrectly recorded the default – they also sent a letter to this effect. I spoke to Experian who denied any responsibility and put the error at the feet of Welcome Finance. I went back to Welcome Finance and they then accepted all responsibility.

They have corrected my credit file and removed all traces of the default.

However, since June of last year I had been finding it difficult to get credit and could not understand why. I had access to my credit file but it never showed the alleged default until about a month ago. I have asked Welcome Finance for compensation as my understanding is that they have breached the Data Protection Act as well as the Consumer Credit Act. They have said I must prove why I have incurred financial loss as a result of the default. The thing is, I can’t prove it. What I can show is that I have been declined credit and that it is most likely due to the default as all of my other accounts are in order. Any advice as to what I should do? I am :mad: that I have had to spend hours sorting this out when there was no fault on my part.

Thanks for any help!

This is not the first time they have done this - I know of at least 2 other people who have paid off their welcome loans/hp with a full and final settlement, and ended up with a default. Once it was brought to WF attention, they eventually removed the defaults. The cynic in me would think that this is no accident, and is done on purpose, to keep those less well informed in the mire of the sub-prime finance world.

nothingwitty

They TOLD me it happens all the time and said it was Experians fault. However, on speaking to Experian I discovered they had lied (i have a letter to prove this.
I have complained to the Financial Ombudsman Service and am planning to sue (small claims court so if I lose I won't be done over!) if they don't make an offer for compensation!

platinum1423

I just got a call the other day from my bank (Halifax) saying that I still owe them over £200 on a loan that I thought'd I'd paid off in June. When I rang back to go through the details, they say they have not recorded the settlement figure that was quoted to me on their system and I have nothing in writing. Where do I stand? Do I have to pay them more money even though the mistake is their's but I can't prove it? They are putting pressure on me saying that the figure is only valid until 20/08/07, implying that it will go up after that date.:mad:

regularsaver1

when a halifax loan is repaid the cahsier has to key closing interest transactions

did you repay the loan in the branch?

platinum1423

No , it was paid by telephone banking.

inmypocketnottheirs

nothingwitty wrote: »

They TOLD me it happens all the time and said it was Experians fault. However, on speaking to Experian I discovered they had lied (i have a letter to prove this.
I have complained to the Financial Ombudsman Service and am planning to sue (small claims court so if I lose I won't be done over!) if they don't make an offer for compensation!

But in order to sue you will have to show that you have incurred an actual loss. Otherwise, what are you suing for?

nothingwitty

inmypocketnottheirs wrote: »

But in order to sue you will have to show that you have incurred an actual loss. Otherwise, what are you suing for?

My actual loss is that I was turned down for a mortgage, most likely as a result of their recording an incorrect default against my name - I have no other blemishes on my record as have been working really hard over past 5 years to get it all in order. I may not get a mortgage for another year, and it will undoubtedly cost me many thousands more than it would otherwise have done...