Default recorded 5 years after Defaulted

GPuffin

Good Day

I have a debt on my credit file that I'm looking to sort.
Also query as to why the default has been recorded on my credit file 5 years after I 'defaulted'.
I would appreciate your thoughts / help on the best way(s) to deal with this.

In short...
Debt of £174
Remaining from a Swift Sterling loan
Due date was June 2011
Debt was transferred to MMF Aug 2014
Default registered on credit file April 2016

My thoughts...

• Argue owing the debt at all to MMF / get the default removed completely
• State that the default date on the credit file is too late from the date of defaulting & that it should be corrected to 2011?
• Partially Settle the debt - MMF have offered to accept £87
• Settle in Full

What do you think?

Thank you

sourcrates

Hi,

Problem you may have here is that "swift sterling (Malta ltd)" no longer exist.

After the FSA crackdown on payday lenders, swift sterling ceased trading, they have recently started trading again but as "swift sterling UK ltd", a different company altogether.

Complaining to motormouth may be a pointless exercise, they are notorious for ignoring disputes, it depends on your own resilience here.

I would send a CCA request as i doubt it will be complied with as the company you dealt with, no longer exist, you could ask for default removal as well.

iolanthe07

Honestly, is it worth all the stress for £87? After all, you effectively have been given £87 and had £87 as an interest free loan for five years. You've done quite well.

National_Debtline

Hi GPuffin and welcome to MSE,


The default date is something that you can raise with the debt collector and could include that as part of a full and final settlement payment. You need to get all of the terms of a payment agreed in writing before you send any money, and whilst correcting the default date is not really a 'term' of settlement, you may find the debt collector is more engaged with you, when money is still owed to them.

So, if you want to settle at a discounted rate, I would suggest that you amend our full and final sample letter slightly, and ask them to correct the default date under the Information Commissioners Guidelines (as well as the other conditions of marking the account as partially settled and with a £0 balance etc). If they refuse you can take the complaint regard the default to the Financial Ombudsman and the ICO but they won't force them to agree to a partial settlement.


Settling a debt in full is easier than a partial settlement and will be slightly better for your credit file, but as the default should only have around 12 months left on your file you have to consider if that is worth it.


I am afraid I can't see how you will get the default completely removed and how you would successfully argue that you don't owe MMF anything. They are collecting the debt since the company has been closed down, or the debt was sold to them because the original agreement defaulted. Either way, I think this is the least likely to be successful of list you gave. Hope that helps,


Laura
@natdebtline