Default listed 4 years after arrears

Jenitul

Hi there,

I am looking for advice on how I can go about getting a default removed that was been placed on my credit file last month 4 years after the account was opened and no payment was ever made.

The company is a PayDay load lender, MyJar (formerly Txtloan),and at the time (2011) I was in financial hardship. The original loan was £100. Now at a balance of £272. I have record of sending them an email in early 2012 requesting they freeze the interest due to my money struggles. I did not receive a reply. During this difficult period I was juggling many payday loan lenders and as a result this particular one was forgotten about. There was no contact from them until last year when I received an email from a debt collection Lucas Credit services giving me options to pay, this email was missed by me.

Since then I have turned over a new leaf financially and have managed to pay my outstanding debt in order to rebuild my credit and ensure that it is not harmed any further. I since moved house and arranged for mail to be forwarded and I have not received a letter to state the 28 day notice of intent to list a default from them either.

Having this new default is devastating as I was hoping to buy a house in the coming years after the last of my known defaults dropped off.

Is there an angle I can concentrate on when contacting them in order to get this default removed? I am able to pay the outstanding immediately also.

Thanks for your advice in advance,
Jen

happy_bunny_2

Unlikely to be removed, but you can try. Slim chance if you pay in full, but get in writing first.

You should have More joy in getting it dated close to when you didn't pay. You need to complain to the lender then if they don't give you a final answer in 8 weeks, you can take to FOS.

Who reports the account to your credit file? When was the account last updated?

Jenitul

I would be happy to accept the default being placed at the correct time, but i suppose i should try to find out if they have followed procedure first? I could have a hope if they acted unfairly or illegally.

The default has been placed by 'MyJar', the loan was taken when they were operating as TxtLoan. There is no data entered for the loan prior to November 2014 and the default has been entered as 10/02/2015. The start date for the account is 31/12/2011 and no payment has ever been made to them.

happy_bunny_2

Jenitul wrote: »

I would be happy to accept the default being placed at the correct time, but i suppose i should try to find out if they have followed procedure first? I could have a hope if they acted unfairly or illegally.

The default has been placed by 'MyJar', the loan was taken when they were operating as TxtLoan. There is no data entered for the loan prior to November 2014 and the default has been entered as 10/02/2015. The start date for the account is 31/12/2011 and no payment has ever been made to them.

Complain, ASAP. You should have received a default notice.

If not, complain about that. Also mention the date is very wrong.

FOS are often reluctant to remove default for no notice sent, unless you can prove you would have paid if you received it. So, changing the date may be best approach if paying to remove fails.

In any case, complain ASAP.

Jenitul

Thanks for your reply happy_bunny.

I have read on other forums that MyJar were sending a default notice via email to people towards the end of last year, very similar circumstances with 3-4 years since the loan. Again, not sure if this email practice is acceptable but i definitely didn't receive one. I cannot find anyone else saying that they have actually received the default as i have.

How would i go about proving the ability to pay should it arise? Had i received the notice i absolutely would have paid as i have been able to set myself up financially in the last few years. Thus why this is such a massive blow now.

happy_bunny_2

Realistically, to get it removed via the FOS, you would need to show that at the time the default should gave been issued, had you got it, you could have paid to prevent it. Which, sounds unlikely from when it should have arrived many years ago, but likely when they may have sent it. Bank statement would prove that or savings statement.

Companies can't send dfsult notices that late, that's nonsense and may help get it removed. That's not going to do them any favours.

I would call the FOS and see what they say:
http://www.financial-ombudsman.org.uk/consumer/complaints.htm

Jenitul

I have rung the ombudsman service and they actually have a department specifically dedicated to Payday loan issues. A lady has taken on my case and she is investigating the situation with them herself.

I hope i gt somewhere with this! I will post of any outcome.

Thanks again.

Jenitul

Update: The Financial Ombudsman service instructed them to put the correct date on my credit file, this has now been changed to early 2012. They agreed that it is unfair for MyJar to be stating the default date inaccurately as it was not my fault they were not exchanging data with CRAs until 2014.

I can only advise that anyone with the same problem takes it to the FO as what MyJar are doing to people is deplorable.

Alfie0611

Hi
I have exactly the same problem. Logged on to Noddle and default from my jar 3 years after account went to arrears.
They chose to send only to email which is invalid and admitted not sending to my home address. By not sending to home address did not give me opportunity to resolve and avoid default.
They are arguing with me but advice from FOC was to submit formal compliant which they have 8 weeks to give final response.
My points are they should send to all contacts on record and the credit agreement is at my home address not my email.
They should issue the default 3-6 months when account went to arrears not 3 years later.
They responded to formal complaint arguing but it did not say it was their final response!
So I asked them if it was and they called me.
I said I am not speaking on phone all comms in writing and followed that up with another email.
I also want to know as text loans did not check it record the CRA is that irresponsible lending. ? I still have no recollection of taking loan out do am process of getting copy statements from 2011
I can pay but if poss would like to get written off but more importantly want the default removed.
There are people all over with same problem it's disgusting!
Any advice would be gratefully recieved

happy_bunny_2

Alfie0611 wrote: »

Hi
I have exactly the same problem. Logged on to Noddle and default from my jar 3 years after account went to arrears.
They chose to send only to email which is invalid and admitted not sending to my home address. By not sending to home address did not give me opportunity to resolve and avoid default.
They are arguing with me but advice from FOC was to submit formal compliant which they have 8 weeks to give final response.
My points are they should send to all contacts on record and the credit agreement is at my home address not my email.
They should issue the default 3-6 months when account went to arrears not 3 years later.
They responded to formal complaint arguing but it did not say it was their final response!
So I asked them if it was and they called me.
I said I am not speaking on phone all comms in writing and followed that up with another email.
I also want to know as text loans did not check it record the CRA is that irresponsible lending. ? I still have no recollection of taking loan out do am process of getting copy statements from 2011
I can pay but if poss would like to get written off but more importantly want the default removed.
There are people all over with same problem it's disgusting!
Any advice would be gratefully recieved

You need to get proof it's your loan, if you don't recall taking it out.

Sounds like if it is your loan, you should get it backdated. May be removed entirely if they didn't have permission to report to CRAs in the agreement or if the failed to follow any basic rules.

Alfie0611

Please see my post on getting My Jar default removed