incorrectly recorded default

tiggy748_2

About two years ago I stopped paying my orange mobile bill due to them constantly cutting off my supply despite my payments being up to date.

Fast forward two years and despite fighting through Cit Adv they constantly ignored me and sold the debt to Lowell.

I was going to take it to court but decided as the default was already two years old, id better just pay it off and move on with life rather than fight it for another year.

I agree a reduced final payment of 80% with Lowell and pay the defaut.

I logged on this month to check my credit file was up to date to discover that Lowell not only have not closed the default (although the recent payment does show) but also the defulat is now registered as June 2015 - meaning another 6 years before it fall off!!!

Surely they cant do this?

I have sent a email asking what the hell they are playing at, but would like advice as to how to get them to put the orginal date back on and close it down as per our agreement (in writing)

Thanks

fermi

They are not allowed to alter the original default date.

It can however show a D or an 8 in the monthly status updates up until the point in time when you settled though. They are not new defaults, just status updates, and do not prolong how long the default and account remains on file.

MEM62

If you check your contract I expect you will find that their failure to provide continuity of service does not release you from your obligation to pay. Personally, I do not feel that this is fair but the clause is included in a lot of mobile contracts.

A lot of people assume that, just because they are not happy with something, that they can stop paying for it. This simply is just not the case and it looks like you have fallen foul of this assumption.

If the default is an accurate reflection of your payment history then it is unlikely to be removed.

tiggy748_2

Im not asking for it to be removed.

Im asking why orange registered the default about 2 years ago, then when they sold the debt, lowell altered the default date to when they took over the loan, and what i can do about this.

fermi

- Add a dispute via the CRA

- Write to Lowells with a formal complaint saying that you can prove that they have altered the original default date in breach of the Data Protection Act, and that if they do not correct it you will be taking the matter to the ICO, and reporting Lowells to the FCA.

tiggy748_2

fermi wrote: »

They are not allowed to alter the original default date.

It can however show a D or an 8 in the monthly status updates up until the point in time when you settled though. They are not new defaults, just status updates, and do not prolong how long the default and account remains on file.

Before this recent update my file showed orange as the creditor and defualt registered about 2 yrs ago (i cant remember any late payments numbers, just the D)

It has never showed lowell as the creditor untill i made the payment even though they have "owned" the debt for around 8 months before I paid it off.

it now shows as lowell with default june 2014 (although checkmyfile have confirmed its actualy oct 2014 which is roughly when they took over the debt and will adjust the file to reflect this) however this is still not the correct date.

You say they are not allowed to do this - any law i can throw at them to back up my demand?

fermi

https://forums.moneysavingexpert.com/discussion/3172602

Under Data Protection Act 1998....

1.Data that is reported on your credit file must be fair, accurate, consistent, complete and up to date.

Lenders that supply data to the CRAs are required to ensure that the data is accurate, up to date and meets agreed quality standards.

The types of product that are reported all relate to forms of credit, but the features of one product type may be very different to another. Rules are in place to ensure that arrears information from different providers, but on the same product type, has the same or a similar meaning.

Rules are also in place to require that the reporting of information on different products is provided in such a way as to mean the same, irrespective of type.

For each product type there are required levels of data (mandatory fields) that must be supplied in order for the data to be loaded and/or updated.

Whilst most credit products are repaid monthly, some are not, such as home credit1. In these cases, the information will be adapted to meet the monthly reporting standards of the credit reference industry.

Should your account be sold or referred to another lending organisation or a debt collection agency, the record(s) provided to a CRA by the creditor/and or purchaser must still be accurate and up to date. In all instances you should be told whether and how the information will be reported on your credit file.

CRA Defaults - Recording of defaults relating to debts that have been sold.

The practice of selling/buying debts is widely used. As long as the information is correctly recorded on a credit file by the lender selling the debt and the lender buying the debt, then two entries relating to one account would not be considered to be a breach of the Data Protection Act provided that:-

• both recorded entries are shown as being in relation to the same account/debt;
• the original debt entry should be shown on the credit file as being either ‘settled' or ‘zero' balance and should show that the debt has been ‘re-assigned’;
• the new DC who shows the debt in their name should maintain the original default date and the correct balances;
• the retention period for maintaining the information on a credit file should be based on the original default date regardless of who is responsible for the entry/debt.

Experian_company_representative

Hi tiggy748

tiggy748 wrote: »

Im not asking for it to be removed.

Im asking why orange registered the default about 2 years ago, then when they sold the debt, lowell altered the default date to when they took over the loan, and what i can do about this.

As Fermi has mentioned, if you feel that the information has been recorded incorrectly on your Experian Credit Report regarding a defaulted account, please get in contact with us as we would be able to query/dispute the information that has been provided directly with the lender on your behalf.

fermi wrote: »

- Add a dispute via the CRA

- Write to Lowells with a formal complaint saying that you can prove that they have altered the original default date in breach of the Data Protection Act, and that if they do not correct it you will be taking the matter to the ICO, and reporting Lowells to the FCA.

If your credit report isn't with Experian you can find the contact details for the other credit reference agencies here:

Callcredit PLC:
Consumer Services Team,
PO Box 491,
Leeds,
LS3 1WZ


Equifax Ltd:
Customer Service Centre
PO Box 10036
Leicester
LE3 4FS

Regards
James Jarvis

tiggy748_2

your all officaly brilliant - thanks!

Off to bed (night shift) will continue with this after attempting sleep

PaulW922

As a contract mobile is not necessarily a consumer credit loan, the default date may be a little trickier to work out. It is the date that the relationship between you and the phone company broke down.

Lowell has got this wrong and debt purchase companies often do this - they put the default date down as the day they bought the debt and not the original creditor's date - however it should be fairly easy to get it corrected. It is however, possible for a defaulted account to be updated every month with the same information - in such cases the 'last updated' field changes but the actual default date does not. Maybe that has happened here?