Whats the best option - Im so Confused

Lexi-Lisa

Hello all, Can someone help please. I have read so many different advice posts on this forum there is so much help out there but my head is completely clouded now not knowing which is the best way forward. I defaulted many years ago on a credit card with MBNA I then had this debt sent to a company called Aktiv Capita, I continued to make very low minimum payments then it changed to a company called Pra Group. This debt is showing as a default every month on my credit file even though Im paying regularly. My credit score is terrible due to this...and cannot get a joint mortgage with my husband because of this, can someone help please, do I write and ask for a CCA to Pra or do I write and ask for a Full and final settlement. Or do I go back to my original debt which was to MBNA and offer a Full and Final settlement to clear this once and for all. , but from reading the forum I dont know who to contact.. this dilemma is killing me any advice would be most appreciated.
thank you

my apologies in advance if Im asking in the wrong place

sourcrates

Hi,

Welcome to MSE.

No, you are in the right place, don't worry.

When an account defaults, it stays on your credit file for six years, from the date of default, after which it will vanish, paid or not, you cannot have it removed for any reason, paying it will not remove it, until the six years have expired.

The accounts default status will be recorded on a monthly basis, it dosent matter that you are paying it now, it defaulted because you failed to pay the contracted payment when it fell due at the time.

What you do now has no effect on that status.

If you wanted to settle the account, you can do, just write to PRA group making them an offer, it's best to CCA first though.

National_Debtline

Hi Lexi- Lisa,


You will need to deal with the company that now has control of the debt – which sounds like the PRA Group. If you have the means to make them a full and final offer then you can do this in writing to try and settle the debt. The debt would likely then be marked as partially settled on your file. This may not instantly improve your credit rating, your credit worthiness is assessed based on many things so there is no guarantee you would then be eligible for a mortgage, but it would be a step in the right direction.

As far as your credit file is concerned, according to information published by ICO, the default will show for 6 years from the date of default. The default will then be removed, but the debt may still appear on your file if the lender continues to send information to the credit reference agencies. The information may vary between the credit files so I would suggest that you check all 3 about how this debt is recorded.


If you are making regular payments now then the lender should mark your credit file as having a payment arrangement in place. If this is not happening then you can make a formal complaint to the lender and escalate the matter to the ICO.


Laura

@natdebtline

Lexi-Lisa

Thank you Sourcrates and Laura at National Debtline, for your advice, I will let you know what happens

again many thanks

Lexi-Lisa

Hello again, following on from my previous post, I took the advice and sent a letter using a CCA template dated 17th March 2016 enclosing £1 fee. I heard nothing at all, and decided to go on noodle just over 2 weeks ago and told them this information is incorrect on my credit file. Then out the blue (well sort of) a response letter from Pra Group arrived, ironically they had my original letter stamped as received on the 18th March 2016. Anyways in the letter they say,

" they write in regards to my recent letter (confused because march isn't recent). unfortunately, as stated in our previous letter, (what letter?) we are unable to fulfil your request as we have not yet completed the required security checks in order to verify your identity. The information we require is as follows... full name and previous names, date of birth and previous address and postcode."

I didnt give them my previous name but I gave them my previous address and postcode.

My query is what do I do now, do I send this information to them by post, or ring them with this information knowing how long the response took.

thank you

fatbelly

Lexi-Lisa wrote: »

My query is what do I do now, do I send this information to them by post, or ring them with this information knowing how long the response took.

I probably wouldn't do either. It would be a toss-up between

ignoring them, knowing that you have the argument of unenforceability to fall back on should they attempt a court claim.

sending a cca follow-up letter reminding them they have not complied with your request and the agreement is unenforceable until they do.

Lexi-Lisa

Hi Fatbelly, yes I wasnt sure to send a reminder but it may make more sense like you said

thank you I will try that

Lexi-Lisa

Hello again

Just to update, I received a letter this morning from pra group with how much I owe, and who the original creditor was (MBNA) going on saying that my account is being managed by there litigation department to look at my outstanding debt for possible litigation recovery.

It goes onto say they want to work with me to help clear my remaining debt in an affordable manner, they will be honest, realistic and will discuss opportunities with me to resolve this matter within a defined period of time.
They gave me 14 days to respond... Ironically really when my letter to them I asked the dame thing and paid a £1 for proof of credit and they took 6 months.

Can someone please advise what I should do, they still didnt send me the information that the CCA letter template asks for.

Much appreciate any advice

fatbelly

The 14 day thing means nothing.

In your first post, you said you were making regular payments - are you still paying them?

sourcrates

You can send them this :

Re: my request under s77/78 of the Consumer Credit Act 1974.

My request for a copy of my properly executed Consumer Credit Agreement remains outstanding.

The Act demands that I be supplied with a copy of any properly executed credit agreement that exists in relation to the above account. I may ask for this on demand providing that a fee of £1.00 is paid. This fee was sent with my original letter, dated **DATE**. Upon receipt of the original request the specified account legally entered into a disputed status.

My request remains outstanding.

As you will know, under the Consumer Credit Act 1974, a judge is not permitted to make any enforcement order unless the creditor can provide a copy of the original credit agreement, or a reconstituted version.This means that unless you can produce such an agreement, this alleged debt is not enforceable in law.

You had until **12 days DATE** to provide me with the copy I requested. After that date you entered into default of my request. Whilst the account is in dispute, you are not permitted to ask for any payment, nor am I obliged to offer any payment to you. Furthermore, whilst the dispute remains, you are not entitled to charge any interest on the account, nor make any further charges to the account. Additionally, you are not entitled to register any information on this account with any credit reference agencies (or any third party).

To register information with a credit reference agency, you must have written consent from the data subject to collate and share such information. This consent is given in the form of a signed credit agreement, so until you produce such an agreement, you may not do this.

The requirement for consent to share data is a clear requirement of the Data Protection Act 1998. Any such attempts to share my data without my consent will be met with a complaint to the Information Commissioners Office.

The time limits, which are laid down in the Consumer Credit (Prescribed Periods for Giving Information) Regulations 1983 are clear. You must supply an executed credit agreement within 12 working days of a proper CCA request. If you fail to comply with a legitimate request the account enters a default situation.

Therefore you have 7 days from receiving this letter to contact me with your intentions to resolve this matter which is now a formal complaint, otherwise your conduct will be reported to the FCA, the Financial Ombudsman and Trading Standards. Any investigation undertaken by them may affect your ability to hold a consumer credit license in the future.

To sum up, I will not be making any further payments to you until you provide me with the document I have requested. Should you not have any credit agreement in relation to this alleged debt, please confirm this in writing to me.


I would appreciate your due diligence in this matter.

I look forward to your reply.

Yours faithfully

fatbelly

FSO? Maybe FCA, as their duties to reply are in CONC 13

https://www.handbook.fca.org.uk/handbook/CONC/13/?view=chapter

13.1.6 clearly sets out the position when they fail to comply. Feel free to remind them about any parts of that section.

Or ignore them