NOSIA (Got the refund - but also bad credit file!)

ellios

Hi All,

Just after a little bit of advice. I had (still have) an account with Cahoot and in 2012 I encountered a few issues and the account fell into arrears. I never received a default and the debt was paid in full Jan 2014.

Last year I received a NOSIA stating that they were refunding fees, interest etc because of the error on their part which meant that until they sent me the NOSIA they were unable to enforce the credit agreement.

Whilst they have refunded fees and acknowledged their error I still have just over 12 months of late payment marks on my credit file - which will be visible for long after the point in time a default would have been had one been issued.

Should they remove the Late Payment markers on my credit file since at the time they were not legally allowed to enforce the agreement, charge interest, fees, etc?

I would like to think so, but they say no - any advice would be great.

Many thanks, Nathan.

msallen

The late payment marker is a true reflection of your late payment, so no.

ellios

That really makes no sense though. If they're unable to enforce the credit agreement, charge late fees etc and it is in a null state - they shouldn't be able to put a marker on the file either.

How can you have a true reflection of something that isn't valid at that point in time?

I understand markers placed prior to when the NOSIA should have been sent, but surely not after as it's unenforceable?

[Deleted User]

Nevertheless, the markers remain valid.

Credit_Master

ellios wrote: »

Hi All,

Just after a little bit of advice. I had (still have) an account with Cahoot and in 2012 I encountered a few issues and the account fell into arrears. I never received a default and the debt was paid in full Jan 2014.

Last year I received a NOSIA stating that they were refunding fees, interest etc because of the error on their part which meant that until they sent me the NOSIA they were unable to enforce the credit agreement.

Whilst they have refunded fees and acknowledged their error I still have just over 12 months of late payment marks on my credit file - which will be visible for long after the point in time a default would have been had one been issued.

Should they remove the Late Payment markers on my credit file since at the time they were not legally allowed to enforce the agreement, charge interest, fees, etc?

I would like to think so, but they say no - any advice would be great.

Many thanks, Nathan.

You borrowed the funds. You did not make the payment on-time regardless of the legal issue on the agreement. You now keep the marks on your file until it expires.

No one is exempt from this unless it is reported in error. The CRA will not remove them nor will the creditor unless missing the expected payment was a fault on their part.

You received the relevant rebate - I am sure if the marks were also in error, they would have been obliged to have them removed under regulatory framework.

If in doubt - contact the creditor and receive legal clarification.

bris

Karma, it caught up with you in the end.

ellios

bris wrote: »

Karma, it caught up with you in the end.

I don't personally see this as Karma, Karma in the modern sense would be laughing at someone for stubbing their toe and then later stubbing your own toe.

I paid my debt in full, did not go out of my way to not pay it, however, circumstances out of my control prevented me from doing so at the time - as soon as I was able too it was resolved.

Although I in effect defaulted on the credit agreement, if the company in question issued a default like they should have done then it would have removed from my credit file a long time before any of late notice marks that they did place.