debt company just not removing default even though paid 18 months ago

fr4nk

Hi All,

I'm at my wits end. I had a credit card debt sold to PRA group, who then contracted IND group to collect it. I made a full and final settlement. paid them in a single payment in September 2014 and hoped that would be the end of it. I have a full and final settlement PAID letter from IND group back in September 2014. I checked my credit file in Sept 15 and the final outstanding amount of £40 is still on as default. I called PRA group and they asked me to email in to their customer services the details which I did. nothing. I called again and they said they can't do anything and I need to call IND group, which I did and they advised, yes I'd paid and I have no outstanding debt and they've told PRA group. I called PRA group who said to email in to a different email address. I did this. I then contacted Experian who raised a query with PRA who advised experian I still owe the money so they were not going to amend my file. I thought I'd wait. Its now 5 months later (Jan 16) and I bought a copy of my credit file and its still there. I sent an email to PRA customer services asking what I needed to do and did I have to take them to court to get it removed. nothing. I then called and was told that I needed to speak to a different department. I asked if it was IND as they already said they cannot do anything as the debt is paid and my credit file says PRA group not IND. They gilr on the phone laughed and hung up. I'm not even joking. I called IND who were actually quite supportive and advised they emailed PRA in December retsating the debt was paid in full.
What do I do? Its been 18 months since I paid. I feel I have a watertight case to take them to court or something? advice please?

fermi

If the credit file entry is in PRA's name, they are responsible.

Have you had a written final response to your complaint to PRA? If so, what date?

They don't have to remove the default. It just has to be marked as a satisfied default with the correct satisfaction date.

If you have not received a final response letter from PRA, or it is less than 6 months since you did, then you can take the complaint to the FOS

http://www.financial-ombudsman.org.uk/consumer/complaints.htm

and report them to the ICO.

https://ico.org.uk/concerns/handling/y/y/y

May be worth one last letter advising them that you will be doing this if not sorted. The FOS may write it on your behalf if you ask.

m4rc

As fermi says they don't remove the default but it does have to say it's satisfied and you don't owe anything, it sounds like you are saying it still says you owe £40 which is obviously incorrect. I wonder if the CRA's could do a bit more here if you send them proof of the final payment, I believed they could then ask the creditor for confirmation and if they don't hear within 28 days they could mark it as settled. immay be wrong, but I'm sure they did this in cases such as yours, so unless the creditor could prove you still owe it ey would mark it as settled.

It won't however remove the default from your files, that will vanish 6 years after the date he default was first registered.

Good luck sorting this, sounds very frustrating

National_Debtline

What were the terms of the full and final settlement you negotiated? You say you have a confirmation letter that you made the required payment (which is good) - does that specify what the creditor is required to do (in terms of your credit file) in exchange for payment? Obviously, they agree that you settled the debt and they aren't going to chase you any longer but did you also ask them to mark your credit file with a zero balance and to mark it as partially settled? If you didn't then I am afraid there may still be a balance showing (but there should be a 'partial settlement' status to show the debt is settled) and the default will remain for 6 years from the date of default as the other posters have said.

If you have your paperwork and you have received poor service then I think a complaint is the best way to move things forward and escalate the complaint if/ when you need to. Good Luck,

Laura
@natdebtline

fr4nk

hi All, quick update. Firstly, thank you all for the good advice. I spoke to someone yesterday who seems to have a modicum of humanity in the complaints department at PRA and have sent him copies of the final settlement letters and a screen grab of my credit file with PRA's entry. He is looking into this so going to give them a last shot before I make a complaint to the regulators. will keep you posted..

fr4nk

PRA, after some threatening emails finally responded and opened an investigation, they have found themselves to be at fault, have updated my credit file to show it was totally cleared back in September 2014. They've said sorry and offered me £50 compensation.
It has taken them since September 2015 for me to get to this sorted. Nearly 8 months and not far off two years since I paid the debt. Not sure whether to accept or complain about therm to the FSO?
thoughts?

fermi

Good news.

FOS even in huge cases generally only award a few hundred, so may be worth sticking with what you have.

Stevie_Palimo

fr4nk wrote: »

PRA, after some threatening emails finally responded and opened an investigation, they have found themselves to be at fault, have updated my credit file to show it was totally cleared back in September 2014. They've said sorry and offered me £50 compensation.
It has taken them since September 2015 for me to get to this sorted. Nearly 8 months and not far off two years since I paid the debt. Not sure whether to accept or complain about therm to the FSO?
thoughts?

If it is resolved now on your file then the easy option is to say close my case and the money offered is either ok or no I want more to see if they will increase it, Complaining to the governing bodies may not bring in a higher offer of compensation as they could deem £50.00 acceptable.

fr4nk

Thanks Stevie, you've basically hit the nail on the head. Not sure whether it is worth going back to them and stating I find their offer of compensation inadequate for nearly two years of distress through having an incorrect credit file and the total nightmare it has been dealing with them.
Not sure what the likely outcome may be and whether they do pay out higher and this is just their way of trying to pay me off quickly. I'm not particularly desperate for the £50 and it seems to be the standard financial institution "we cocked up, we're sorry but not sorry enough to change how we do things, here's fifty nicker now !!!!!! off you peasant"

DCFC79

fr4nk wrote: »

PRA, after some threatening emails finally responded and opened an investigation, they have found themselves to be at fault, have updated my credit file to show it was totally cleared back in September 2014. They've said sorry and offered me £50 compensation.
It has taken them since September 2015 for me to get to this sorted. Nearly 8 months and not far off two years since I paid the debt. Not sure whether to accept or complain about therm to the FSO?
thoughts?

Take the £50 and put it behind you.

PaulW922

I agree. Take the £50. Do remember that the default will remain but show as 'satisfied'.