Duplicated Default on credit file

Brainsy

Hi. I'm hoping to get some advice, as I'm pulling my hair out here. Below is a very quick snapshot of main events.

• In April '10, I was approved for a loan with Sainsbury's Bank of £2,200.
• I missed every payment I was supposed to make due to personal financial difficulty
• I finally started paying back the loan at the end of April '16

In that timeframe, the loan seems to have been passed around a bit. The loan is currently owned by Arrow Global Ltd and managed by Moorcroft Group Plc. I have a letter from Sainsbury's dated 31st May 2012 saying that they have assigned of the account's respective rights, title and interest to Arrow Global Limited. My issue is that Sainsbury's are still showing as reporting Defaults on my credit file. I am signed up to both Noddle and CheckMyFile.

With Noddle:
Sainsbury's is showing a 'D' in a red circle with a '..' underneath from Jun 2011 to present - balance of £2,875 all the way through. Arrow is showing a 'D' in a red circle with a 'DF' underneath for July 2011, and '..' from August 2011 to May 2016, where it changes back to 'DF'. June is also showing 'DF'. Balance of £2,845, which drops to £2,345 for May, which is when I made my payment. It drops again to £2,145 for June. This is accurate.

With CheckMyFile:
Sainsbury's is showing a 'US' from Jun 2011 to present - balance of £2,875. Arrow is showing a 'D' for July 2011, and 'US' from August 2011 to May 2016, where it changes back to D. Balance of £2,845, which drops to £2,345 for May, which is when I made my payment. It drops again to £2,145 for June. This is accurate.

I have spoken to Moorcroft, Arrow and Sainsbury's. Sainsbury's say I need to speak to Arrow and Moorcroft. Arrow and Moorcroft say I need to speak to Sainsbury's.

I got someone at Moorcroft to speak to their Queries department, who spoke to Arrow. Today I received an email back about that saying:

Our client has confirmed that you will need to speak to Sainsbury`s Bank directly with regards to the credit file. The Sainsbury`s Bank marker on your credit file is showing as a "ghost marker" which means only you can see this marker and not our client.

So when I got home, I phoned Sainsbury's. They said there's nothing they can do as they no longer hold my file. So I said "If someone else holds my account, then why are Sainsbury's still reporting a default each month?". They just referred me to the people who currently manage the account. Sadly it was too late in the evening for me to phone them up, but I feel like I'm just going round in circles.

So in conclusion:

A) Both Sainsbury's and Arrow are reporting default, although I have made payments to Arrow
Both Sainsbury's and Arrow report different figure, even before I started repaying.

Please advise! I don't know what to do!

fermi

If Sainsury's have an entry on your credit file still, then THEY are responsible for updating it and it's accuracy.

It should be recorded as per this...

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.

fermi

Make a formal complaint to Sainsbury's, stating that if if is not either removed, or updated as per ICO/SCOR guidelines, you will be taking the matter to the FOS and reporting Sainsburys to the ICO.

Brainsy

Thanks for that, Fermi. I felt like going to the Financial Ombudsman but wasn't sure which steps I should take beforehand, and even if I was reading my credit reports correctly.

Should I make Arrow/Moorcroft aware of my intentions to complain to Sainsbury's, and possibly take it up with the ICO/FOS? Maybe as just a courtesy thing? Arrow/Moorcroft have done nothing wrong, so I have no complaints with them.