Failed debt claim, default notice on credit file not updated

roversrobin

My wife was recently chased by Lowells for an old student overdraft debt, but this failed when they couldn't produce any evidence before it went to court.

However, we have recently applied for a mortgage and it appears that they added a default notice for the debt on my wife's credit report.

Is there any way we can get Lowells to update the default to say 'settled', or is our only option to add a notice of correction on the credit file and hope for the best until it drops off the record?

Any help would be really appreciated, as this is holding up our future plans!

[Deleted User]

Is the default accurate? Was the debt settled?

sourcrates

Yes, send a written complaint to Lowell's compliance debt, ask for the default to be removed as it was added unfairly.

If no joy, or after 8 weeks, pass your complaint to the ICO.

roversrobin

@zx81 - The debt was originally with Lloyds bank, but I believe the default was added by Lloyds when they were pursuing us for the debt. We have never seen any evidence of the actual default date (if ever there was one). Their case failed and they stopped the pursuit, so it has been settled now.

@sourcrates - Thanks. Can I use the reason stated above that it was added unfairly without proper evidence that the default existed?

IAmWales

Does she owe the money, did she fail to repay what she borrowed?

roversrobin

The case has been stayed as Lowell couldn't provide any proof that the debt exists (they couldn't provide any evidence when a CCA was requested), so the debt isn't owed any more.

What I think I need to understand is that because they have not been able to provide any evidence of a default notice ever being issued, are we within our rights to request that they remove the default from her credit file?

takman

roversrobin wrote: »

The case has been stayed as Lowell couldn't provide any proof that the debt exists (they couldn't provide any evidence when a CCA was requested), so the debt isn't owed any more.

What I think I need to understand is that because they have not been able to provide any evidence of a default notice ever being issued, are we within our rights to request that they remove the default from her credit file?

She obviously borrowed the money and didn't pay it back, she still owes the money but you took advantage of a technicality so you didn't have to pay it back. Adding a notice of correction saying that she doesn't pay back money she owes if she can get away with it isn't really going to help!.

She defaulted on the debt so its correct that it should show on her report and she didn't pay it so why should it show as settled. The only thing you can do is challenge the date of the default if its incorrect.

In future she should pay what she owes and then you won't have this problem.

roversrobin

takman wrote: »

She obviously borrowed the money and didn't pay it back, she still owes the money but you took advantage of a technicality so you didn't have to pay it back. Adding a notice of correction saying that she doesn't pay back money she owes if she can get away with it isn't really going to help!.

She defaulted on the debt so its correct that it should show on her report and she didn't pay it so why should it show as settled. The only thing you can do is challenge the date of the default if its incorrect.

In future she should pay what she owes and then you won't have this problem.

I agree, it would be lovely if we always paid money back that we owe on time and in full, but lives aren't as simple and black and white as that, are they?

What I am trying to do now is look at the situation as it is, assess how it is affecting us, and trying to come up with a solution that will allow us to get on with our lives unhindered by past transgressions.

If you can't help with this situation, and only want to cast judgement, then I would appreciate you don't bother taking the time to post.

StopIt

roversrobin wrote: »

I agree, it would be lovely if we always paid money back that we owe on time and in full, but lives aren't as simple and black and white as that, are they?

What I am trying to do now is look at the situation as it is, assess how it is affecting us, and trying to come up with a solution that will allow us to get on with our lives unhindered by past transgressions.

If you can't help with this situation, and only want to cast judgement, then I would appreciate you don't bother taking the time to post.

Due to your tone I shall post this without prejudice:


The corrective action for a missing default notice is to re-issue it.


You will not get a default removed because a debt is unenforceable in most circumstances and you've already "won" by proving that they can't take any action against you. You can always go to the original creditor and ask them to remove the original default, or Lowell to remove the current version (As frankly, as they, nor any DCA can't chase the debt so it makes no odds to them any longer) but they're under no obligation to do so.


The worst answer you'll get is "no" so you have nothing to lose by asking.

roversrobin

StopIt wrote: »

Due to your tone I shall post this without prejudice:


The corrective action for a missing default notice is to re-issue it.


You will not get a default removed because a debt is unenforceable in most circumstances and you've already "won" by proving that they can't take any action against you. You can always go to the original creditor and ask them to remove the original default, or Lowell to remove the current version (As frankly, as they, nor any DCA can't chase the debt so it makes no odds to them any longer) but they're under no obligation to do so.


The worst answer you'll get is "no" so you have nothing to lose by asking.

Thank you; this is exactly the clarification I was looking for. This is very helpful.

takman

roversrobin wrote: »

I agree, it would be lovely if we always paid money back that we owe on time and in full, but lives aren't as simple and black and white as that, are they?

What I am trying to do now is look at the situation as it is, assess how it is affecting us, and trying to come up with a solution that will allow us to get on with our lives unhindered by past transgressions.

If you can't help with this situation, and only want to cast judgement, then I would appreciate you don't bother taking the time to post.

The problem isn't that she didn't pay it in full and on time the problem is that she completely ignored the debt and didn't come to an arrangement with Lloyd's to pay it back at a rate that she could afford.

You have both been actively trying to avoid paying back the debt even though you obviously have the money because you have managed to save up a deposit for a house.

You then think they are in the wrong for applying a default!. So i thought i would give you a bit of a reality check.