Default on file whilst Ombudsman investigated a dispute

Rocarro

Please help.....

I took out a 3 year / 60,000 miles private lease hire contract (Citroen C1) via Evans Halshaw which ended last August. Upon returning the vehicle I got hit with a bill for £884 comprised of 2x missed services and some damage which Citroen said was outside of their fair wear and tear policy. For a number of reasons* I felt that the charges were both unfair and inaccurate and so after failing to make any progress with Citroen who, by the way, in the meantime had marked my credit file as in arrears over these disputed charges, I took the matter to the Ombudsman....

*for example, I purchased the recommended service plan for the vehicle at the time of signing the actual lease contract and was told by Evans Halshaw (a registered Citroen dealership!) that the vehicle should be serviced every 12,500 miles and built my service plan accordingly (I have all this in black and white). upon returning the vehicle however, Citroen advise that it needs to be serviced every 10,000 miles hence their charge for additional services!

So, the Ombudsman have been considering my case now for several months- one factor I have asked them to consider is whether it is fair that Citroen are able to adversely affect my credit file whilst a disputed matter is being investigated. In the meantime, Citroen have continued to report late payments each month and have now marked my file as being in default for the last two months!!! I've raised this with the Ombudsman but they seem to think this is fine.

Having had a quick look at the Information Commissioner's Office's 'Principles for the reporting of arrears, arrangements and defaults with credit reference agencies' it looks like they shouldn't have done this because:
1. They didn't write to me to tell me that they were going to register a default against me and
2. A default should not be filed if the amount outstanding is made up solely of fees or charges

Am I missing something? Surely consumers are able to challenge big companies (through the correct channels) over the charges and fees that they try to levy safe from the threat of having their credit file ruined? Mine has now crashed from 5/5 (excellent) to 1/5 (poor-very poor).

Early on I did contact both Experian and Noddle to tell them what was going on but they were less than helpful both in terms of any notes I could have added to my file to explain that this was an ongoing dispute and in terms of contacting Citroen who insisted I owed the money and that was that!

What do I do?

Thanks so much in advance for any help or advice you can give me.

fusionx212

You seem to have an idea already and it's pretty plausible. Can I suggest you ring trading standards also. As its misold to you.

as well as email the CEO of citroen there's usually an email.
Also get on twitter, tweet them with @ stating how angry you are. Twitter is their social window any blemish there will always make them look bad. I would be soft with this either.


asking noddle and equifqx to place a note on the account as it is in dispute. They are not allowed to register defaults with out informing you of doing so I.e a written letter.

Rocarro

Thank you. I'll look into following up on your suggestions (never used Twitter before!).
I suppose some of my genuine upset and bewilderment is that the financial ombudsman weren't aghast at what they'd done to my credit file whilst I pursued my complaint and that they weren't the ones directing me to the information commissioner's guidance ( I found that on one of the forums here).
I'm trotting off to see CAB today to double check some of my facts and then I'll crack on.
I also should have added that after having acknowledged that the FOS were involved, Citroen then wrote to me telling me that they had referred my debt to a debt collection agency!
It's all been a pretty upsetting episode from start to finish.

fusionx212

Rocarro wrote: »

Thank you. I'll look into following up on your suggestions (never used Twitter before!).
I suppose some of my genuine upset and bewilderment is that the financial ombudsman weren't aghast at what they'd done to my credit file whilst I pursued my complaint and that they weren't the ones directing me to the information commissioner's guidance ( I found that on one of the forums here).
I'm trotting off to see CAB today to double check some of my facts and then I'll crack on.
I also should have added that after having acknowledged that the FOS were involved, Citroen then wrote to me telling me that they had referred my debt to a debt collection agency!
It's all been a pretty upsetting episode from start to finish.

don't take it to heart unfortunately they owe you no loyalty you are just a number.

stand your ground though as you have pretty valid arguments.

the FOS is funded by business. I would say don't expect to much sympathy from them state your claim and argue. if the adjudicator rules against you then take it to the ombudsman.

then once you win request all defaults and credit limits be removed and you be reimbursed for the hardship this has caused you.

fromtheshires

Good luck. The credit reference agencies say contact the company that issued the credit. They won't care and the ICO are as useless as mammary glands on fish.
I raised a dispute where there was a clear breach of the data protection act as someone else's credit accounts were visible and in default. I contacted all three and stated this is a breach of the DPA and the law around the DPA. Not a single person was bothered. They still show on there now.
Hope you get it sorted but prepare for a long fight!

Rocarro

Honestly, I am shocked at how little help and protection there is out there for consumers on these sorts of issues. I thought that the various Ombudsman services that exist and ICO would be knights in shining armour but I'm getting the idea this isn't the case.
I'll keep the forum updated and share any 'top tips' if I have any successes but I'm feeling pretty pessimistic.

fusionx212

Rocarro wrote: »

Honestly, I am shocked at how little help and protection there is out there for consumers on these sorts of issues. I thought that the various Ombudsman services that exist and ICO would be knights in shining armour but I'm getting the idea this isn't the case.
I'll keep the forum updated and share any 'top tips' if I have any successes but I'm feeling pretty pessimistic.

just be prepared like anything in life.

just be ready to argue. it does take time

GingerBob_3

Yet another case of credit reporting abuse. The issue highlighted here is nothing whatsoever to do with someone borrowing money and failing to pay it back. It's a dispute over service provision and payment thereafter. Why then, are these pond-life companies allowed to use CRA reporting as a blackmailing tool?

In effect, they are saying "toe the line and do as we say or we'll make sure you have difficulty in obtaining credit in the future". OP, take it up with your MP. This sort of abuse needs legislation to curtail it.

Rocarro

Exactly!
At the risk of sounding like a stroppy teenager 'it's soooo unfair!'. I just can't believe they're allowed to do it. It's totally disproportionate.

chanz4

simples pay them and then sue them

Rocarro

So here's the latest...

The FOS's adjudicator has looked at my complaint and......

....they've rejected every single aspect of it out of hand (even though the wording in my contract differs substantially from what Citroen are now quoting and using to justify their charges) and have not even commented on the adverse credit file markers that was a central aspect of my complaint except to remark on the fact that I will no doubt be disappointed [with their assessment] "given the impact it has had on my credit file". I.e., its a done deal, your credit file is knackered, serves you right for trying to challenge big business, wind your neck in and get on with it. No advice given at all around how I can legitimately challenge it by writing to the CRAs, citing the role of the ICO etc etc. So disappointed! Looks like you were right Fusion x212! So, I'm going to escalate it to the Ombudsman (but I'm not holding my breath) and also take it up with the ICO in the meantime.

On the point of the ICO, I actually spoke to them today. They had no idea that they had published a document entitled 'Priniciples for the reporting of Arrears, Arrangements and Defaults at Credit Reference Agencies' and also had no idea that according to that document, a default should NOT be registered if it pertains solely to charges or fees (which mine does!). It doesn't fill me with much hope that they'll be able to sort any of this for me.