Removal of defaults by payday loans and dca

Bouncyfish

Hi hopefully I'm posting in the correct place, I had some payday loans which defaulted around 2 years ago. I have no issue with paying these however I am wondering if I have any sort of bargaining tools to set the defaults removed if I pay the account? The payday loan company is lending stream who have since "sold" the debt to motomile finance who I have requested a original default notice from as thought this is what the majority of people have used as a tool to get the defaults removed. I am looking at the possibility of getting a mortgage and these defaults are making things difficult. I also have a ccj which is 4 1/2 years old which I was unaware of as the information must have been delivered to a previous address is there any way I can get this removed if I settle the account?

Any help would be greatly appreciated

Thank you

DevCoder

Your credit file should accurately represent your financial history so no removals should be performed unless there was a mistake on behalf of the data submitter.

If your defaults were removed then a mortgage provider would see little risk, which is obviously not the case.

This is why getting defaults removed only happens (well should) where the underlying information was incorrect or a true default never happened.

sourcrates

In a nutshell, as above, derogatory information, if correct, cannot just be removed in return for settling the account, thats not how it works.
A lender has a duty to accurately record your financial conduct, if they put down information that is incorrect, then yes, you can apply to have it removed, but if the original entry was correctly recorded, then no, it cant be unfortunately.

On_my_way

Hi

Defaults will fall off your report after 6 years, the mortgage forum will help you but most mortgage lenders won't lend to anyone who has had a payday loan in the last 12 months.

Is there a reason why you didn't pay off the loans or put in place a plan to pay them? Have you got further defaults?

The best thing you can do is to pay these off as soon as you can and clear any other accounts that have defaults against them.

Good luck, this forum is brilliant for advice. The mortgage board will help you a lot.

Bouncyfish

Thanks for the replies guys the loans are now 2 years old +, the main reason I'm curious is I don't remember ever receiving any default notifications from the original loan provider so thought I may have a chance of arguing them. I stopped paying the loan because they used a continuous payment authority to take funds they weren't due to take leaving me with an issue I'm now fighting with the bank, they allowed a payment to be taken with no overdraft in place and then proceeded to charge me for the privilege so I ended up with bank charges and the amount the company took having to be paid back obviously I approached the loan provider and got no where so stopped making payments not knowin what to do.

Now I'm looking at moving forward but these are hindering me in a big way and I'm curious as to what is the best approach I have already paid one in full and have no issue paying but still they have caused a lot more cost than what the loan was by their actions

DevCoder

The loan companies did not take monies with no overdraft in place, your bank allowed the monies to be taken due to them allowing you an "unauthorised overdraft" (on their part, i.e. you had not agreed an overdraft with them but they gave you one to save the expense of bouncing payments).

If they had not allowed this informal overdraft then they would have bounced the payment request, charged you for it and this cycle would have repeated a day or so later when the loan company applied again for funds.

So from what you have written the loan company is not at fault here, you could take it up with your bank but they'll state that they were saving you money by offering you an informal overdraft versus no payment and charges for bouncing it.

From what you have written, I really don't see any reason for the defaults to be removed, indeed stopping payments was kind of the wrong thing to do, normally its best to pay "under protest" whilst escalating the complaint via the proper channels/procedures.

On_my_way

In a way you are better off just sorting this out now - and not worrying about the defaults because they can't be removed.

If you pay things off and put yourself in a better position from now you may still be ok for a mortgage etc, just not at the best rate.