Is it possible to get a Default removed.

Tp1992

Right so, back in 2012 I got my first credit report from Experian which came back disapointing(around 250) but I thought to myself, I'm only 19. So I started taking out payday loans(from wonga) which I kept repaying with no issues. 2 years later my score increased to around 400 so I applied for a credit card with Barlcaycard (bad credit creditcard) and used it properly as I should to build credit.

I also opened a shop direct account (with littlewoods) and I decided I would get myself an xbox. While I had the money to buy one cheaper upfront I figured I would get it on finance to help build my credit score. Around Auguest 2014 I lost my job and I had to go on benefits for awhile (by awhile I mean roughly 13 months due to being !!!! in interviews), so for obvious reason, I decided what was more important to spend my benefit money on at the time, which was Gas, Electric and Food (I wasn't entitled to home benefits due to living in a property owned by my father with no tennent agreement) and I started to fall behind on my payments with littlewoods.

After 4-5 months of making late(or missing) payments I decided to phone them up and explain my situation and I requested a lower monthly payment which was agreed with over the phone. However the following month I got my statement with the same monthly payment as the previous month (which I asked to be lowered). So I figured maybe this is a one off as the statement might have already been issued before the payment was lowered, however the following month... No decrease.

Back in May 2015 I moved into a home with my girlfriend (which she mortaged all on her own) and I went onto my littlewoods account and updated my address details to my new address. 3 months later I got myself a good paying job and I logged onto my account and tried to pay off the littlewoods account which came back "we cannot autherise this payment". So I decided to leave it for a little while as this could just be a error.

However I got very busy with work and forgot about it and then early Febuary 2016 I got a letter from Lowell informing me that they had purchased my Debt (for £309) from Shop Direct(littlewoods) and that I needed to pay it off or set up a payment plan. So I phoned them straight away and set up a payment plan right away, I got a credit report right after I got the letter than it was 782 which I was very happy about. But come 02/03/2016 I got a new report and it was 63, Lowell had registered a default on my account.

I starting panicing so I phoned them up right away and payed off the remaining debt hoping this would fix things but it hasn't. Default is still there... So after some research I found out that a Default notice is supposed to be issued before applied to give the person 1 last chance to pay it off.

I never got a default notice from Littlewoods or Lowell. I phoned lowell up and asked why I didn't get it and they told me that Littlewoods issued the default, however it is registered on my credit file by Lowell and that I was issued a default notice to my previous address while I wasn't living there.

So I logged onto my Littlewoods account and noticed that my address had not been updated.

What can I do from this point, do I have any grounds to stand on in hopes to have this default removed?

I'm at that point in my life where I'm thinking of moving forward with my relationship (been with my parner for 5 years now) and hoping to get a bigger house in the next 3-4 years with the plans of starting a family which won't happen with my new credit rating and the Default.

Any information and help would be welcomed, if you need anymore information please ask, I will reply as soon as possible.

Thanks in advance, Tony.

fermi

Lowell are entitled to have the default changed to show their name as the creditor if they have bought the debt.

This is the ICO guidance to it's case officers on defaults:

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

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.


CRA Defaults - Guidance for filing defaults

Updated guidance for filing defaults with credit reference agencies was published on 1 January 2014.

The official site can be accessed at http://www.scoronline.co.uk/key_documents/ and the relevant document is entitled Principles for the Reporting of Arrears, Arrangements and Defaults at Credit Reference Agencies.

This is not the ICO’s guidance but a new document drawn up by the credit industry in consultation with the ICO which is now intended to be the main source of information for the public on this topic.

This may create some impact on calls to the Helpline or complaints received where an individual is concerned that a default has been registered incorrectly on their credit reference file.

Although the new guidance does not cover this in any depth, it is important to make individuals aware that there is a difference between a ‘default notice’ and a ‘default’ registered on a credit reference file.

A ‘default notice’ is a communication a lender should usually send to a borrower before defaulting a credit agreement regulated by the Consumer Credit Act (CCA). There is not necessarily any DPA obligation on a lender to issue a default notice to individuals.

Although we advise that it is good practice to issue a notice, lenders often provide individuals with fair processing information about defaults and notices in the terms and conditions when the account is opened. If this is the case then this is likely to satisfy the “fair” aspect of the First Principle.

The term ‘default’ on credit reference files is used to refer to the situation when the relationship between lender and borrower has broken down, and this scenario is explored in more detail in the updated guidance on defaults.

So essentially, the absence of a formal ‘default notice’ would not prevent a default from being registered on an individual’s credit reference file. If there are outstanding payments or arrears in respect of a loan or other account then an organisation would be within its rights to record this at the credit reference agencies. Providing the information recorded is an accurate reflection of events then the Fourth Principle would not be contravened. Legislation DPA

Tp1992

Quick update, I have just gotten off the phone with the people who deal with defaults and whatnot from Littlewoods and the person over the phone stated that a automated default notice was sent out in july 2015, however I told him I did not recieve it and explained my situation at the time.

After talking to the guy on the phone, he told me that I wasn't providing enough evidence for him to request a removal of the default and that he has sent off my statement for a final review which can take up to 8 weeks...

Should I accept this or should I phone them back up and ask why they are not willing to remove the default notice when 1. the default notice could of been lost in the mail. 2. I updated my address on the website but didn't register(which I didn't know about till I contacted lowell and checked my littlewoods account).

Thanks

fermi

Seems highly improbable that if you took the complaint onwards, either the FOS or ICO would think they had done anything wrong.

No harm in trying though

DCFC79

Remember your credit rating means nothing, have a read of this thread https://forums.moneysavingexpert.com/discussion/4974939

Tp1992

Quick update, phoned them back up and they advised me that since the complaint has been raised that they no longer have the power to make any further amendments.

Looks like a waiting game from here on out.

For anyone who is in a similar situation as me, I will be updating this thread with details of what I have done and what I'm going to do so that you can use my experience to your advantage.

spadoosh

Your not exactly in a good position to get it removed.

Lost in the mail isnt a good enough excuse im afraid, post very rarely goes missing and everyone could use the same argument. Nor is them/you not updating information or at least this is going to be difficult to prove.

Also by paying off the debt youve kind of lost your bargaining tool (they want your money) An unpaid default for all intents and purposes is the same as a paid default, they both screw up your credit report. If it was unpaid you couldve offered settling the debt if they remove the default.

Unfortunately its a long and painful process getting one removed, we found out about ours whilst applying for a mortgage. Ours was through fraud but took nearly 6 months to get sorted. In the end i said we would settle the balance immediately if they removed the default immediately (asked for in writing) they agreed and it cost us £800 (buying a house at the time and family member committed the fraud so going the legal route wouldve probably been more problematic.)

Good luck getting it resolved, its going to be difficult.

spadoosh

Tp1992 wrote: »

For anyone who is in a similar situation as me, I will be updating this thread with details of what I have done and what I'm going to do so that you can use my experience to your advantage.

Unfortunately for the people looking for this thread (and yourself) the chances are its too late. Financial mistakes are costly and can be for many years. Educating yourself about all things related to personal finance will help prevent things like this in future.

Learn about debt, managing debt and the consequences of failing to repay debts.

Tell anyone who will listen of your experiences and encourage them to avoid the same mistakes. Debt isnt a reward club, your high 'score' doesnt mean your good with debt/finance, it just means you like getting into it.

fusionx212

I have challenged defaults and currently challenging defaults, I have had them removed due to incorrect information etc.

if you feel you was not provided the notices and they have not provided sufficient evidence, regardless of your debt then challenge it with the credit agencies, can I ask why you havent asked for a SAR which shows the default notices and all data they have on you.

you are with in your legal right to know what they have on you. i would suggest getting them to send you the information and going through it to confirm if you did actually recieve the defaults and notices.

tuitangi

I challenged defaults that EON had put on my file incorrectly.... alot of phoning and emailing later they was removed..... don't give up!

Maybe1day

Fusion what is a SAR ? ��