Motormile Default

cw33

Hi All,

Long time reader, first time poster.

I have just logged on to my credit file and noticed something strange.

I have a default for a payday loan i took out when i was a student, it was stupid and I completely forgot to pay it back - I never heard anything from them about it until about 8 months ago when i first looked at my credit file. I noticed I had a default dated 01/11/2011. As it was less than a year to the 6 year cutoff I decided to leave it to drop off.

I have just logged in to check credit score again and now have a default from Motormile with the account dated 14/04/2011 (same as Payday default) and default date of 30/01/2017.

I received a few emails (but never a default notice) from Motormile earlier this year about this debt and decided to ignore it, for the same reasons above.

What i want to know is (and hopefully the good people of this forum can help me):
1. How can Motormile have put a default date of 30/01/2017 surely this should still be 01/10/2011?
2. Can you have 2 defaults for the same debt?
3. How do i go about correcting this as I do not want this default on my record for another 6 years?

Thanks in advance

sourcrates

Hi,

Writing to complain about the default date is going to be tricky without acknowledging the debt, MM are not stupid, and this is most likely a ploy in order to get you to contact them.

Just confirm the original default date again for me ?

sheff6107

Debt 1 is statute barred, so you'd have to go to the ICO to challenge Debt 2 on the grounds of it being a debt which simply doesn't exist.

cjmillsnun

Debt 1 will be statute barred in November. Write to them after the original debt has dropped off asking what the default is on your credit file. When they reply (which will be vague to try and get around the fact the debt is statute barred), counter with a prove it letter. They will either then drop the matter (realising they won't win) or send you details. You can then say that you don't acknowledge the debt and that it is statute barred in any case.

WorkingTowardsDebtFree

If this is the same debt, then it became Statute Barred on the 14/04/2011 if that was the last time you acknowledged the account by payment or in writing. If any payments were made manually or automatically on the Pay Day Loan after this date - or you have acknowledged the debt in writing at any time after the 14/04/2011 - then the debt becomes Statute Barred 6 years after the latest of those actions took place.

The fact that you were defaulted in November 2011 does sound right, around 6 months after failed payment --- but please be very careful, make sure you are Statute Barred before doing anything I suggest below.

So, based on that information, if the debt is now Statute Barred, you could write to Motormile Finance stating:

- You recognise no debt to their company, you have never dealt with them.

- If they have acquired a debt from the Pay Day Loan company then this debt is Statute Barred, and as such you will not be making any payment and that they should cease all collection attempts and activities. Any further actions as such will be deemed as harassment.

- That the original lender defaulted the account on the 01/11/2011, so they cannot default the same debt at a later date. They appear to have done this knowing that the account was approaching being Statute Barred, and as such this is either a clerical error on their behalf that they should correct or a deliberate and cynical move on their part knowing that the account was already defaulted. You expect them to correct the date on the default immediately, and failure to do so will result in referral to the Information Commissioner's Office and the Financial Ombudsman Service.

- If this is a different debt, you do not recognise it, you do not accept it, and you do not recognise owing any debt to Motormile. If they feel that this is a different debt to the one that you think it is, then you require them to prove it exists.

None of this is legal advice, and please seek professional advice if you feel appropriate.... Please be very confident that this is the debt you think it is and that it is indeed Statute Barred before progressing!

I have had dealings before with Motormile. They were difficult, and you have to stand your ground, be insistent and play a drawn out game - they never quite seem to get to the stage of going to the ICO / FOS, but you have to tread that path with them and argue on points of fact, law and their legal obligations. They will make you feel frustrated at times, but you can get somewhere with them once you're talking to the right person there.

National_Debtline

Hi cw33

Welcome to the board. Just to clarify, are the payday loan and the Motormile debt showing as two separate debts on your credit file?

Previous posters talk about your debts being statute barred, that means when a creditor has run out of time for court action to be taken. It will normally apply when there has been 6 years (since court action could have been taken) where the debt has not been paid, you have not acknowledged it in writing and a CCJ has not been obtained. In most cases, court action cannot be taken until there have been one or two missed payments. The date court action can be taken is not usually the same as the date the default was registered on your credit file.

If you can remember when you first missed payments hopefully you can work out whether both debts are now statute barred. If they are you can send a sample statute barred letter, this will put the burden of proof on the creditor to show the debt is not statute barred. https://www.nationaldebtline.org/EW/sampleletters/Pages/Time-has-run-out-to-recover-the-debt-(sole-name).aspx.

Susie
@natdebtline

PaulW922

I think there is some confusion over dates here. If the loan was defaulted on 1st Nov 2011 then it may not be statute barred yet although it would be getting close. I would be very sure over my dates before doing anything.

cw33

Hi All,

Thanks for reply.

Yes default is 01/11/11 so is almost Statute Barred.

I will wait until after 01st November and then contact them and ask for removal.

Many thanks,