Scottish Power Default

hd216

Hi All,


I've had a good look through the website and learned a quite a few things, however would if possible like a bit of further clarification on the matter. Bear with me as this might be a bit long winded, but its probably easier if I give as much detail as possible.


My other half recently checked her credit file as we are looking at buying a house together, only to find that there is a default on there from Scottish Power. The default details are as follows:

• Account start date: 08/06/2007
• Opening balance: £ 942
• Date of default: 29/12/2010
• Default balance: £ 942

The default, and associated balance (which bizarrely is some £150 less, at £792) only appear on the report after June 2011.


The account we believe it to be pertaining to was set up whilst flat sharing, which from what I can gather was jointly and severally liable agreement between her and her friend and Scottish Power. They would both pay an agreed sum into an account held by her friend, and all bills were then taken from this. As far as she is concerned she has paid all bills, and to the best of her knowledge, all bills were up to date.
To make matters somewhat more difficult, she is no longer in contact with the former friend due to quite a severe breakdown of relationships, to the extent that the police issued a verbal no-contact order between them. Shortly after this she moved out from the shared tenancy, informing the landlord of her departure and providing them with a forwarding address.


She has made initial contact via telephone and email with Scottish Power, questioning why this is showing on her credit file, and why she has never been informed of any debt on the account. One thing I have been clear about when she has made contact has not been to admit any liability for the debt.


In summary their response has been less than helpful, stating that all information relating to the account has been archived, and if she wishes to raise any queries then she must submit a SAR and include the £10 admin fee for any / all documentation.


This is hanging around her neck now and is severely damaging her credit score, and therefore our chances of getting a joint mortgage, as it is showing as an active default on the account.


A few questions arise from this:

1. Why have they not chased the debt either themselves or passed it to a third party collection agency?
2. Is the onus not on them to prove that the debt exists, rather than trying to charge her for access to any signed contracts etc.?
3. Will the debt become Statutory Barred after 6 years, and if so is this from the date of default? If so what implications does this have on a credit report - as the default should drop off at the end of next year if my understanding is correct?
   

rizla_king

1. They are incompetent or are not sure of their ground.

2. Yes but no way to force them.

3. Yes but from date the bill was due for payment. Default is nothing to do with it for a water bill

hd216

In this instance then what is the best course of action?

Make no further contact and wait it out until the end of next year when the default will drop off of the credit report?

Meatloaf1981

In short: yes.

They aren't chasing the debt and your partner has admitted no responsibility. Whilst it appears on her credit report, I would suggest raising a dispute on Noddle or Experian etc. and they will query whether the default marker is correct. If they cannot remove it (And in all likelihood, they probably can't) then I would do the SAR request as per the information from Scottish Power.

hd216

Ok have submitted a dispute on the information via Noddle, and see where that gets us. Like you've said Meatloaf, I won't be holding my breath to see it disappear any time soon.

A few things I would like a little clarification on however - once the default drops off, and the debt is time barred, how does this leave her?

Can future creditors see that this debt is still in existence?

Is there 'any point' (and I use this in the lease blase sense possible) to clearing the debt with them, or is it a case of having a clear conscience so to speak?

Meatloaf1981

hd216 wrote: »

Ok have submitted a dispute on the information via Noddle, and see where that gets us. Like you've said Meatloaf, I won't be holding my breath to see it disappear any time soon.

A few things I would like a little clarification on however - once the default drops off, and the debt is time barred, how does this leave her?

Can future creditors see that this debt is still in existence?

Is there 'any point' (and I use this in the lease blase sense possible) to clearing the debt with them, or is it a case of having a clear conscience so to speak?

Nope, once the debt drops off the credit report, its off for good. Future creditors cannot see it at all. There is no point clearing a debt if a) They're not chasing you for it b) You dispute the debt is yours anyway and c) It's statute barred in any event. You're just peeing money away for no good reason and it also wouldn't mean that the default is going to drop off sooner, it will actually have ZERO effect on your credit rating to pay it off!

Meatloaf1981

I should add that if the SAR comes back indicating your partner does indeed own some or all of the debt, despite what she says then she should make a formal complaint with a view to having the default marker removed by the energy company. If they fail to resolve her complaint to her satisfaction then she should consider contacting the energy ombudsman to make a further complaint.

hd216

Thought that might be the case!

Well I suppose in that case its now just a waiting game for the default to disappear at the end of next year, unless by some miracle Noddle deem it to be incorrectly applied!

Thanks for the help!

hd216

Meatloaf1981 wrote: »

I should add that if the SAR comes back indicating your partner does indeed own some or all of the debt, despite what she says then she should make a formal complaint with a view to having the default marker removed by the energy company. If they fail to resolve her complaint to her satisfaction then she should consider contacting the energy ombudsman to make a further complaint.

I think she'll take a lot of persuasion to part with the £10 for the SAR to be honest! Her stance is shes less than impressed they put her in the situation in the first place, so the thought of then paying them money riles her!

Personally I know I'd rather just invest the £10 to know exactly where I stood! I'll just have to try and convince her to think sensibly!

Meatloaf1981

If she's adamant she wasn't the account holder or linked to it directly in any form after she left the property then she should make the request and then make a complaint if needs be. Otherwise she can sit and wait for the default to drop off next year and then forget about it!