Refusal to remove defaults

MuddyFunster

Hi,


I've heard mention of these 'Prove It' Letters in the past - I wonder if someone could point me in the direction of a link or give me the broad strokes.


I have a default on my file from 2010 lodged by a company called MKDP LLP who I've learned is debt purchasing company - I have never heard of them, nor have I ever had any dealings with them, I also have never entered into any repayment agreement with them - during the time of the default I was either hospitalised or in recovery so I know I wasn't borrowing any money, I couldn't actually fend for myself at the time.

shortcrust

I'm all for people getting defaults removed if they shouldn't be there, but I worry greatly about people getting accurate defaults removed. People who've struggled with debts getting giddy about being able to get into debt all over again isn't good for anyone.

MuddyFunster

Agree with you Shortcrust to some degree - being unable to get credit is undoubtable the best 'cure' for someone who has been unable to manage the credit they have.


Unfortunately the system we have in place at the moment is flawed to say the least - in the OPs case (and Mine I believe) a debt had effectively been recorded twice.


A person enters into an agreement with a finance co, for whatever reason it goes wrong - it's unfortunate, but 'bad debt' is an integral part of the finance industry - the finance co loses their money, which is mitigated by the people who do pay which is the core of how Underwriting works. The consumer is 'punished' by having their failings made public record to warn other potential lenders - the law says that this information must be recorded for 6 years.


That is the system we have, it's not perfect, but it works - these Debt Agencies however play fast and loose with the rules to attempt to force payment - the consumer didn't borrow anything from them, and more importantly doesn't owe them anything, but they claim otherwise - upon being challenged they back down - "oh know you're quite right, you don't owe us any money" but your credit file will show any potential creditor that you do, and you refuse to pay it.


I truly believe, and have done so through the decade I worked in the industry that the debt mitigation departments of banks and even worse the debt collection agencies are crooked as all hell - we have clear and reasonable procedures in place for when things go wrong, situations change or people are foolish and borrow more than they should - be instead of offering to follow them, the immediate response to a missed payment is intimidation and threat.


Why should a 5 year old debt, be 'rerecorded' as new, when it's anything but, why should a debt recovery agency be allowed to claim a default for a debt they don't hold.


I believe if banks entered into reasonable agreements with their customers when circumstances change (which they're supposed to do) rather than be as threatening as possible to attempt to be more scary than the next guy to make sure they get paid, there would be less bad debt about.

SpongebobsMum

MuddyFunster wrote: »

I believe if banks entered into reasonable agreements with their customers when circumstances change (which they're supposed to do) rather than be as threatening as possible to attempt to be more scary than the next guy to make sure they get paid, there would be less bad debt about.

Define 'reasonable agreements' - this is about pure efficiency for banks. This is an industry. A few organisations hold the capital, they lend it for profit from the lendee. When the lendee does not pay they make money again from selling the debt - they even wrap them all up and sell them on together to hide the risk status. When their gambles explode they're bailed out by the lendee's taxes.

Why do people get into debt? Because we're encouraged to all the time by every media source available. So much so that it has become a societal norm to borrow, to have now what you couldn't afford before. It's the way all consumer economies work, selling products that aren't really needed to people that can't really afford them. It's the american dream god damn it! If people didn't get into debt all world economies would collapse.

In my view there is no moral arguments that are constructive here. Blame cannot and should not be apportioned because the faults are structural, in the design of the system.

What I can do, is make sure my bloody credit report is as 'good' as I can get it,

- by any means necessary*

*:eek:

Bennygb

This just happened to me

Hi

I'm after some advice.

I checked my file this morning and there was a Default from Southern Water on their!

Now I got a years bill that's split in two payments, due April and October. Left it a little late and they then wanted both payments up front. However I paid the first bill and they said "no worries pay the rest again in October" then got some threatening letters over the past couple of months so phoned them and the recoded are conversations and put notes on my account to say "ignore letters etc"

Now I got a default this morning! so phoned them paid what's owed straight away and there looking into a appeal for me.......

Any ideas what I can do?

Thanks