Help please!!!

Bunnyboo

I'm looking for some advice from anyone who can help.

I was recently in contract with (a company). We moved home and wanted our services to be transfer to our new address as the didn't supply that area. The company could not provide our services to the new address and wanted to charge me a "disconnection fee". I argued the point stating why should I pay for a service I want but you cant provide. I took it to CISAS and made a formal complaint. Long story short..I lost and paid the account in full and closed it within an hour of receiving the result from CISAS.
However this company firstly sold/gave my outstanding balance to a debt collection agency and also put me down as a late payment on my credit file during the complaints procedure.
Are companies allowed to take this action even when a dispute is been dealt with by CISAS. I was under the impression that if a dispute is been dealt with the account is placed on hold until and outcome has been reached.

Any help would be greatly appreciated please.

[Deleted User]

I don't know about the rules during a dispute - hopefully someone will be along that does.

I know debt COLLECTION has to stop when in dispute, but that only applies to already defaulted accounts (with recoveries or the likes of Capquest).

I doubt regular payments would - that would be open to abuse. e.g. £10k outstanding on a credit card, minimum payment of 3%. One month you can't afford it/don't want to pay as you have a holiday to go on etc etc - so you open up a complaint. When complaint is finally resolved, you have the funds to pay the backdated £300 and any other payments owed from future months.

Even if the above were with a stipulation of a 'valid' complaint - it's very subjective as to what is defined as valid!!

You really need a copy of your credit files to see exactly what's been recorded (I'd get all 3 to be safe, and wait 2 months after the account was closed for the final update). You need to check them carefully to see the exact status - is it 1 or 2 months in arrears, and then brought up to date and satisfied? Or is it recorded as default? Or is it partial settlement?

IF it's already gone to default the situation gets a lot more complicated - you could dispute based on not receiving a default notice etc etc (assuming you didn't, as you don't mention default).

You need to make sure it's dealt with properly now - a default, if you have one, will affect you for at least 3 years. Whatever the circumstances, unless your salary and rest of the record are incredible, lenders will see a default and be wary (whatever notice of correction you put on the file).

If it's just a late payment marker and then account brought up to date and settled, ultimately it won't make too much difference after a few months - unless your file is already bad or you are going for something like a mortgage (where they scrutinize your file).

First of all - you must get your files, and see what's on them

Assuming it's just a late payment, and now shows as nil balance and fully satisfied - consider a complaint/query ASKING for it to be amended as a gesture of goodwill

- escalate internally and cause enough fuss that they get fed up and correct it for you.

If it IS a default you'll need specialist advise.

Bear in mind that if this CISAS acts anything like the FCA, the company in question would have paid a fee as soon as you opened the dispute, so getting a late payment overturned might be hard enough!

Bunnyboo

Thanks for the reply.
My file shows 1 payment 1 month late (during the the complaint).
When I received the verdict from CISAS there wording was very confusing. I emailed and asked who actually won the complaint. The response I got was "no one". Apparently there was not enough evidence to go with either party so I was back to square one. I couldn't be bothered to go trough it again so paid in full and closed the account. My file now states a 0 balance.
I have contacted the companies credit section and am still awaiting a response. CISAS refused to speak with me when I wanted to know about the above. The told me they don't offer advice and I would have to go through the complainants procedure again???
Credit file is ok as in debt. 1 car loan and 1 credit card. My score was better when I had £20,000 of debt. I think Experian have changed the way they calculate there scoring which is stupid. If I have a lot of debt its ok and if I have very little debt its bad. It don't make sense to me.

[Deleted User]

Don't worry about your score, it doesn't mean much, because Experian & co don't give you any money, and they don't even know how much you earn.

It's what the banks think that counts - and they've given you car loan & card.

Are you always, for everything else, paying on time etc? If you are, and you haven't got a mortgage application (or re-mortgage) coming up in the next few years, then I wouldn't worry.

You could write into the supplier and say that they should abide by FCA guidelines such as the Treating Customers Fairly (TCF), and that given the unusual circumstances of the matter and way you dealt with it (paid immediately after appeal result), you'd like the late payment marker updated to paid on time as you don't think you've been fairly dealt with.

If it is not, you'll strongly consider referring the matter to the Financial Ombudsman as this matter DOES affect your credit file, even though it now shows settled.

It is minor, but you don't want a mortgage/loan etc rate put up because of a missed payment that wasn't your fault (e.g. the very best rates will expect a spotless credit history)

Bear in mind it costs them something like £550 when your case goes to the ombudsman..... don't say that to them, but the threat of the ombudsman and a request for a credit file update (or if they claim they can't do that - a letter confirming the account was in dispute during the relevant time, so you can show it to any lenders in future) and £50 compensation for the time & distress caused in dealing with this should be worth a shot

Ultimately though, they are right with just the late payment marker - you DID pay late, so factually they can report that, and they do have the right to charge fees etc if you move out of coverage area (it will be in your contract).

If they had defaulted you'd have had a lot more of a leg to stand on, this will just be a case of future learning I'm afraid (if you credit file is really important, e.g. because you know you are going for a mortgage, then pay up first and dispute after).

Not sure they'll amend it, but hopefully you get somewhere, and it doesn't affect you too much