Experian, Arrow Global & Egg

Crystals5648

In October 2015 I reviewed my credit file with Experian for the first time in since 2007. I had been on a DMP for many years since 2007, but I found to my surprise a default from Arrow Global dated 27/05/2011. I asked Experian to confirm who this was and it turned out that an old Egg loan had been passed to them sometime in 2011. Since October I have been disputing the default. To begin with, I queried its "legality" due to the fact that all of my money problems started in 2007 and this was when I got a number of defaults starting out on my DMP, I had no memory of notification of a late default. Secondly, I had not missed a single payment within the DMP, which cleared the Egg balance in September 2011, so I felt that the late default (if I had been notified), was unjust and I was in a negative situation for trying to repay my debts (it should have been applied much earlier).

I got nowhere with this argument and was just told by Arrow that the default was correct. Then, I found a hard copy of my Experian Credit report from September 2007 which showed that the same Egg Loan was indeed defaulted by Egg on 16/5/2007. I got back in touch with both Experian and Arrow with scanned copy of this information. This was late December. Since then, Experian have put a query against the default and contacted Arrow once more, who responded that the later default was valid and did I have proof. They sent me a standard email to let me know Arrow had confirmed the data was valid. Arrow have told me it will take them 8 weeks to respond to the email I sent them directly.

Being clear of debt I am in the process of looking to join my husband on the mortgage as we look to get a bigger house (affordability is no issue), so am desperate to get this sorted. I feel I am just being ignored by Arrow, and Experian are not taking accountability for hosting information that I have proven to be incorrect (with data on their own system!).

Can anyone help with advice on what I can do to get the incorrect default removed please?

awolo1

There isn't really a lot you can do, you defaulted and that is the end of the matter. You can search online for a template that asking if the lender will remove the default marker as a gesture of good will, hoping that somebody who actions your letter has the discretion to make such amendments.

If you have proof that the default has been applied incorrectly (which doesn't sound to be the case), then you will have just have to wait for the 6 years.

Some high street lenders will consider a default with a notice of correction - go via a broker. It depends on your overall credit rating and other items.

fermi

Crystals5648 wrote: »

Then, I found a hard copy of my Experian Credit report from September 2007 which showed that the same Egg Loan was indeed defaulted by Egg on 16/5/2007.

So I would point out to them in writing that:

- You have provided proof of the original default credit file entry from Egg. Include the proof again.
- DPA and ICO require that any default recorded by Arrow Global MUST use the same original default date.
- Therefore, you demand the correction or removal of their default entry.
- Arrow must respond to you in writing with a final response and copy of their complaints procedure.
- If the default is not removed or corrected and a final response received from Arrow within 8 weeks from the date of your original complaint, you will be referring the matter as a formal complaint to the Financial Ombudsman and registering a complaint for breaches of the DPA to the Information Commissioner.

Crystals5648

awolo1 wrote: »

There isn't really a lot you can do, you defaulted and that is the end of the matter. You can search online for a template that asking if the lender will remove the default marker as a gesture of good will, hoping that somebody who actions your letter has the discretion to make such amendments.

If you have proof that the default has been applied incorrectly (which doesn't sound to be the case), then you will have just have to wait for the 6 years.

Some high street lenders will consider a default with a notice of correction - go via a broker. It depends on your overall credit rating and other items.

Thanks for responding. I am not disputing the default itself - I should have got the one in 2007. My argument is that I should not have had a second one in 2011 for the same account if I had not run up any more debt with the company. Or is this a valid thing to do?

fermi

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

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.

awolo1

Crystals5648 wrote: »

Thanks for responding. I am not disputing the default itself - I should have got the one in 2007. My argument is that I should not have had a second one in 2011 for the same account if I had not run up any more debt with the company. Or is this a valid thing to do?

Your only hope is to try a plee with the original lender and purchaser of the debt providing all the debt is now paid in full and cleared. Some people have had luck with this.

It doesn't sound like that the lender/collector has done anything wrong in my humble opinion.

fermi

Crystals5648 wrote: »

Thanks for responding. I am not disputing the default itself - I should have got the one in 2007. My argument is that I should not have had a second one in 2011 for the same account if I had not run up any more debt with the company. Or is this a valid thing to do?

If Egg previously recorded a default on your credit file with a different/previous default date of 2007, then recording another one dated 2011 is completely out of order, inaccurate under DPA, and against ICO guidelines.

awolo1

fermi wrote: »

If Egg previously recorded a default on your credit file with a different/previous default date of 2007, then recording another one dated 2011 is completely out of order, inaccurate under DPA, and against ICO guidelines.

I agree with this, then you have them bang to rights and I would claim for compensation.

mcpitman

awolo1 wrote: »

I would claim for compensation.

Good luck, Egg Banking PLC no longer exists.

fermi

mcpitman wrote: »

Good luck, Egg Banking PLC no longer exists.

The default and date from Egg was correct.

It is Arrow global who have bought the account that have decided to record a new one with a fictitious date.

So any redress would be against them, not Egg.

Arrow Global most certainly do actively exist.