Old debt

HardBoiledEgg

Not sure if this is the right place to post? First time in posting.(sorry) Basicaly I was a bit of an idiot a few years ago, and had defaults registered in my name, I was in a bad place so things got really out of hand. I've since turned my life around, managed to pay all of my debts off to the tune of £12,000 and have started to save for a mortgage( even though I probably won't get one for a year or two). I thought I had paid all my debts off with all companies, as every one of them is "satisfied" on my credit report, and there's no other debts on there. Just the other day I have had a scathing letter from a company called Motormile Finance who say I owe them £500. I cannot remember having a debt with them (although I might of done, as I said I didn't know what day of the week it was most of the time). The debt they say is about 3 years old. I have asked them to send me proof of the debt to my home address, they say it was for a payday loan. I'm just worried in the meantime they can register a default in my name, and hamper my chances of getting a mortgage in the future again. If I dispute it and don't pay it, can they register a default still? Even though the debt is 3 years old and not on my credit file? Kind Regards

sourcrates

Hi,

Unfortunately yes they can, and most likely will, unless one has already been registered by the original creditor, which is highly likely as they usually default an account before its sold on, this dosent always happen though.

So chances are its one of your historic creditors, and MM will only be continuing the original default status, it should still vanish after 6 years.

Check through your credit report, check all 3 of the CRA`s to be certain.

HardBoiledEgg

Thanks for the quick reply. Would the debt default be registered from when I first missed a payment? Or from now? Thank you

sourcrates

HardBoiledEgg wrote: »

Thanks for the quick reply. Would the debt default be registered from when I first missed a payment? Or from now? Thank you

Thats difficult to say, it "should" of been defaulted within a few months of you stopping payment (3-6 missed payments is the norm)
but a lot of these payday loan companies were fly by night outfits, lots didnt heed the rules on anything, let alone default reporting.

If nothing currently shows on your file, its for one of the following reasons :

either 6 years have expired and its dropped off naturally, in which case it cant come back.

or,

The original creditor defaulted it, and its on your file somewere.

or,

It was never defaulted, so MM can add one if they choose to do so.

HardBoiledEgg

Thanks for all the advice so far. Okay so I've asked them to send me a copy of the agreement in which I signed because I didn't believe it was mine, and to be honest I don't really think it is. But they have come back with an agreement that's been signed by someone totally different name and address saying how much he owed? Not very professional at all

sourcrates

HardBoiledEgg wrote: »

Thanks for all the advice so far. Okay so I've asked them to send me a copy of the agreement in which I signed because I didn't believe it was mine, and to be honest I don't really think it is. But they have come back with an agreement that's been signed by someone totally different name and address saying how much he owed? Not very professional at all

Oops, data protection breach !!

About right for motormouth !!

HardBoiledEgg

Right okay, I've asked motormile to send me proof of this debt. They say they can't provide proof anymore this is part of the response I got.

"The original term of your agreement has expired but because the account is still open and unsettled, we are obliged to provide you with this statement to show how much is still owed and explain about settlement. You can settle the agreement at any time by paying off the amount you owe. To do this, you should contact us for a final settlement figure."

sourcrates

Consumer credit act is quite clear on this, sec 77/79 request for information, asking for copy of credit agreement, if they cant provide it, then the debt is unenforceable in court until they do provide it, however long that may be.

So what does this mean for you ?

Well, they can still ask you to pay, they can still report on your credit file, what they cant do is enforce the agreement through the courts, as they dont hold the correct paperwork.

So what are your options now ?

You can tell them your not paying them as they have failed to provide any proof of liability, or you can make an offer to settle it, the choice is now yours.

StopIt

HardBoiledEgg wrote: »

Right okay, I've asked motormile to send me proof of this debt. They say they can't provide proof anymore this is part of the response I got.

"The original term of your agreement has expired but because the account is still open and unsettled, we are obliged to provide you with this statement to show how much is still owed and explain about settlement. You can settle the agreement at any time by paying off the amount you owe. To do this, you should contact us for a final settlement figure."

Wow, no MotorMile, just no.


You've (MMF, not you of course) already been fined for chasing debts with spurious claims and you're still at it. No Proof, no debt. It doesn't matter if the agreement is expired or not you still have to provide it.


Write to them one final time. State that it is your right under the CCA to be provided proof of the debt in dispute, no matter if it is expired or not. Also say that if they do not provide actual proof of the original debt that you will not pay and that you are aware that non compliance will make this debt unenforceable at court.


Finally, tell them if they do not comply with this, you shall stop all communication and not pay them and any further action will be fully defended. A put up or shut up, basically.

sourcrates

FCA keeping a close eye on them, up until recently they were operating under a temporary consumer credit licence :

https://www.fca.org.uk/news/press-releases/debt-purchaser-motormile-finance-agrees-redress-package

See here also :

https://debtcamel.co.uk/mmf-debt-write-off/

HardBoiledEgg

Wow! You've been really helpful everyone thank you so much. Just one final one, if they can't prove the debt is mine, they can still add a CCJ to my credit file? That hardly seems fair, I don't even think the debt is mine