Default without any notice

Marley0507

I recently signed up to Experian’s free one month credit report and to my surprise there is a default registered on my file. The entry is was registered by 1st Credit limited and the amount I defaulted on…..£31! It says the entre was made in April 2012 but I have never received any form of communication about the debt or anyone owing me any sort of money.

I’ve googled 1st Credit Limited and it turns out they are just a debt collection company, gave them a call and the lady I spoke to was as useful as a chocolate teapot. She couldn’t tell me who the debt was originally from or even take payment to settle this supposed debt (I’m happy to pay the measly debt and dispute it afterwards). I left my phone number and been promised a call back this today.

What are the chances this default being removed from my credit file? I’ve read that if not enough notice is given then this can be removed, is true? I’ve never been turned down for any credit so not overly fussed but worried this might come back to bite on the backside.

Any ideas on how I can go about removing this from my credit file or at least attempting to?

Thanks

boo_star

Marley0507 wrote: »

I recently signed up to Experian’s free one month credit report and to my surprise there is a default registered on my file. The entry is was registered by 1st Credit limited and the amount I defaulted on…..£31! It says the entre was made in April 2012 but I have never received any form of communication about the debt or anyone owing me any sort of money.

I’ve googled 1st Credit Limited and it turns out they are just a debt collection company, gave them a call and the lady I spoke to was as useful as a chocolate teapot. She couldn’t tell me who the debt was originally from or even take payment to settle this supposed debt (I’m happy to pay the measly debt and dispute it afterwards). I left my phone number and been promised a call back this today.

What are the chances this default being removed from my credit file? I’ve read that if not enough notice is given then this can be removed, is true? I’ve never been turned down for any credit so not overly fussed but worried this might come back to bite on the backside.

Any ideas on how I can go about removing this from my credit file or at least attempting to?

Thanks

For such a low amount it sounds like a utility bill, possibly a mobile phone bill?

Unfortunately not all debts require a default notice to be sent, you'll need to find out what the debt was originally for to detrmine whether you should have been sent one or not.

Marley0507

Thanks boo_star

I spoke to 1st credit today and paid the £31 off, they said they'll mark the entry as settled. They also told me the debt was from virgin media, they used to be my internet provider in 2009/2010 when I was at university.

They told me they had been chasing the debt and all the letters went to the house I used to live at whilst attending uni. Weirdly though, I've had all sorts of mail forwarded on to me by the landlord apart from these supposed letter they claim they've sent. Is it worth getting them to send them again, to see if they are bluffing?

I also phoned virgin media and after about an hour and half on the phone and being transferred to what seemed every single one of their employees they said they do not hold any record in my name and as I'm unable to provide an account number they can't help!

than_prutt

From my experience, Virgin Media send out A LOT, and I mean A LOT, of junk mail/letters. So what might have happen was that when the new occupants saw that the letters were from Virgin Media, they just put them straight in the bin!!

Thrugelmir

Marley0507 wrote: »

Is it worth getting them to send them again, to see if they are bluffing?

Virgin will have in place standard automated procedures for overdue accounts. So you'd be barking up the wrong tree.

chanz4

Or it could be an account migration, they create a bill on old accounts to move them. I had that issue

Ben8282

Why did you not cancel the broadband account when you moved?

Kamalamrani

Ben8282 wrote: »

Why did you not cancel the broadband account when you moved?

I'm certain I did. I made sure all the bills were sorted and accounts closed, I definitely didn't just leave without cancelling it. I pay all my bills via direct debit so I have no idea why they didn't just take the £31 when it was due! The most frustrating thing about all this is it seems Virgin Media have completely washed their hands of the whole thing!

boo_star

Kamalamrani wrote: »

I'm certain I did. I made sure all the bills were sorted and accounts closed, I definitely didn't just leave without cancelling it.

Utilities don't need to send a default notice as their agreements (typically) do not fall under the Consumer Credit Act.

fermi

boo_star wrote: »

Utilities don't need to send a default notice as their agreements (typically) do not fall under the Consumer Credit Act.

Not a "default notice" under the CCA, but they can and perhaps should send a "notice of intention to file a default" with the CRAs, which is a separate thing from a CCA default notice.

Sadly a NOI giving 28 days is not always required, and just something the ICO strongly recommends.

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

The lender must have notified you of their intention to register a default against you at least 28 days before doing so, in order to give you time to make an acceptable payment or reach an agreement with them on an arrangement. This also applies in cases 1 - 3 above.

but

CRA Default on a credit file Vs default under the CCA

I was not sent any default notices, should the default on my credit reference file be removed?

In most cases, the answer will be ‘no’, provided that adequate fair processing information was provided when the account was originally opened.

It may help to explain that a “default” on an individual’s credit file does not mean that an individual has been defaulted under the Consumer Credit Act; essentially, the same word is being used to describe two slightly different things (which can obviously lead to some confusion). Instead, a “default” on a credit file simply means the lender considers the relationship between itself and the individual to have broken down.

Therefore, whilst it may be a requirement of the Consumer Credit Act to issue default notices, there is no DPA obligation on a lender to issue a default notice to individuals before marking an account as being in default on their credit file. Although we advise that it is good practice to issue a notice, lenders will often have provided individuals with fair processing information about defaults and notices in the terms and conditions when the account was opened. Provided this was the case, then it is likely to satisfy the “fairness” aspects of the first principle.

So mixed messages from the ICO on that.

boo_star

fermi wrote: »

Not a "default notice" under the CCA, but they can and perhaps should send a "notice of intention to file a default" with the CRAs, which is a separate thing from a CCA default notice.

Sadly a NOI giving 28 days is not always required, and just something the ICO strongly recommends.

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



but



So mixed messages from the ICO on that.

I agree. I was just saying that they just don't HAVE to do it, so many don't.