Incorrect Default Compensation.

x32z8

Basically in Summer 2017, when in financial difficulty, I tried to make a repayment plan with Satsuma loans, which ultimately broke down as they would not respond to any of my e-mails.
They reported the account in default and sold it to a debt collection agency, but with an incorrect balance, meaning I could not settle with the agency (as they were requesting nearly £800 more than I owed) and Satsuma would not speak to me as they were no longer managing the account.

I complained on the basis in early January 2018, that I had fulfilled my obligations and made token payments. This complaint was actually upheld so they removed the default status of my account and agreed to take back the account from the agency, March 9th 2018, and would arrange a settlement with me.

However, they did not buy back the account until 9th May 2018, a point which they have lied about, claiming they bought it back in March. I made a data request from the agency who confirmed they held the account until 9th May 2018, so I have caught Satsuma lying about the status of my account. After that, without contacting me or notifying me, they resold it to another agency.

Since I didn't know anything about this, I asked the agency for proof from Satsuma. Which after a couple of weeks they provided, and I arranged a repayment schedule.

In August 2018, Satsuma reported my account in default once more, despite me keeping up with my repayment plan, and in September 2018 I paid the last amount owed.

Since September 2018, I have contested the default numerous times with Satsuma, and each time have been fed a different line.

The first was that the default date of August was in fact incorrect and it should be June, three months after their letter dated 9th March 2018. As part of the this, they took £30.00 off my balance.

I had to inform them that I did not owe them anymore money, so they couldn't take £30.00 off anything and that again the account should not be in default, as I had again fulfilled my obligations.

In November 2018, they updated my credit account to show a revised default date of June, but also took £30.00 off my balance which was still showing as owed.

I complained again and again, and finally I received a an automated e-mail from Satsuma on 8th January 2019 confirming my account balance was zero and had been repaid.
My credit report was updated on 18th January 2019 to indicate the account was no longer in default, but Satsuma (or Provident) have not been in contact.

In short, they have finally rectified their mistake, but it has taken 5 months after repayment to for them to report it as such.

On top of this, the default that has been shown, was incorrect, and reported with an incorrect balance for a further 5 months.

Additionally, they have lied or been incorrect about my account, it's balance and it's status.

The harassment from a debt collection agency, who were chasing the wrong amount of money from an account that wasn't in default was not a great feeling.

On top of that, I have been rejected for numerous loans and been forced to take out payday loans at some really high interest rates (I've paid circa £3,000 more in interest than I would have done on my previous loans).

Do I have a legitimate case to ask for compensation based on the following?

- Incorrectly sold the wrong balance to a Debt Collection Agency.
- Rectified the account being in default (thus admitting it was a mistake?)
- Lied about buying the account back from an Agency (I have written proof).
- Failed to update my account on their own system for 5 months.
- Failed to update my credit report accurately for 5 months, including an update that was incorrect.

antrobus

x32z8 wrote: »

...

Do I have a legitimate case to ask for compensation based on the following?

- Incorrectly sold the wrong balance to a Debt Collection Agency.
- Rectified the account being in default (thus admitting it was a mistake?)
- Lied about buying the account back from an Agency (I have written proof).
- Failed to update my account on their own system for 5 months.
- Failed to update my credit report accurately for 5 months, including an update that was incorrect.

Make a formal complaint to Satsuma. If you are not satisfied with their response take it to FOS.

spadoosh

The fact that you tried doing a repayment plan suggests the account went in to default. Did you pay to the original terms of the contract? when you mention repayment plan, was this agreed or did you tell them that you where just going to pay less? Because it sounds like the latter and if they havent agreed to it, your account will have definitely defaulted.

From what youve put it sounds like you should have defaulted. So i can see why they sent it on to a debt collection agency. The buying the debt back is something of a misnomer. I cant see how it helps you apart from the fact that you have a company that lied (they wouldnt have done, a call centre operative or someone inputting data on your account will have been misinformed or lacking information). Giving you bad information isnt the same as lying so youre only using this to paint a picture, not as hard evidence of misgivings.

It sounds pretty confusing, i can see why it would take a while to offer any resolution going back and forth. ULtimately they have to report accurate information to the CRA's. Theyve done this all be it over a long time due to what sounds like a confusing issue.

Youve got little chance of getting recompense because you used payday loans. Borrowing money just isnt a right. Youve got no evidence nor will be able to find any that will suggest the reason for your decline was a default on your account as likely as that may be. And a judge will always point out that you couldve gone without what you where buying or that you chose to accept the interest rates offered by payday loan companies.


In summary, i think youve got little chance of getting recompense directly from satsuma. You can try, put in a complaint and ask for an amount. Expect to be told no though. As for recompense with regards to the law, again i think youre going to struggle. Its difficult to quantify your loss and any quantifiable loss is going to be phone calls, so not much.


Do you still have a default on your credit file or has it been removed completely?

x32z8

No it was three months of them not answering e-mails, which they agreed was their fault and removed the default initially.

For the second default (June 2018), they claim that they bought the account back on 9th March 2018, that I did not make a payment for three months and thus on 9th June 2018 they report my account as default.

However, they did not purchase the account back until 9th May 2018, which means that for the first two months I couldn't have paid them anyway, because I was still being chased by the debt agency, and in late May was finally contacted by another agency at which time I agreed a repayment.

This second default has now been removed completely, showing my account as settled with late payments, which is an acceptable outcome.

I feel like they have constantly fobbed me off from the beginning, and as I said, this is the third complaint now, as every time they offered a "Resolution", it was stating wrong facts. Whenever I challenge those facts and resolution, they opened it up as a new complaint.

In terms of the "lying", they wrote via letter that they would buy back the account. Then in their resolution, they specifically state they DID buy back the account on that date, which is how they came to the revised default date of 9th June 2018 (three months after). I only state "lying" because someone has looked into it, and specifically stated it did happen, when I have it in writing that it did categorically not happen.

Having been constantly harassed with phone calls from a debt collection agency who were chasing the wrong amount and then the wrong person (given Satsuma had informed me they would buy back the account and did not), plus that this has now stretched on for 18 months.

[Deleted User]

So they have fixed the reporting and status on the account?

x32z8

Yes, they have fixed it, but it took five months.

[Deleted User]

OK

So why do you feel the requirement for compensation?

What evidential financial loss did you suffer over the 5 months as a result?

Willing2Learn

I don't think you need to have suffered "evidential financial loss" to be eligible for compensation. The stress, and sheer hard work that it can entail to get your voice heard is worth compensation in my book

x32z8

!!! wrote: »

OK

So why do you feel the requirement for compensation?

What evidential financial loss did you suffer over the 5 months as a result?

I was looking in to similar cases on the Ombudsman website, and in similar circumstances compensation was awarded.

As I said, I've paid more in interest as my lower credit score meant I couldn't access better interest loans. I've conversatively calculated that I've paid over £3,000.00 more in interest by being rejected by lender's I've previously had loans from and having to go to short term/payday companies instead.

My time, I've had to send over 50 e-mails in this matter, including having to resend copies of e-mails because Satsuma could not find them.
More so, is the harassment, from the Debt Collection Agency, where Satsuma.

[Deleted User]

x32z8 wrote: »

I was looking in to similar cases on the Ombudsman website, and in similar circumstances compensation was awarded.

As I said, I've paid more in interest as my lower credit score meant I couldn't access better interest loans. I've conversatively calculated that I've paid over £3,000.00 more in interest by being rejected by lender's I've previously had loans from and having to go to short term/payday companies instead.

My time, I've had to send over 50 e-mails in this matter, including having to resend copies of e-mails because Satsuma could not find them.
More so, is the harassment, from the Debt Collection Agency, where Satsuma.

Similar cases or same cases? There's a big difference.

The interest rates weren't because of your low credit score - lenders don't see them or care about them.

Unless you can categorically prove it was this one account that resulted in the higher rates of interest then I'm not sure you have much ground to stand on.

It could also be that you were rejected by the same lenders having already taken products with them before with a fixed period of time, or that you didn't fit their customer criteria when you applied.

If you're struggling with free-cash and are relying on loans then I also suggest posting a SOA on the DFW board to see what can be cut back on

x32z8

Similar cases, I'm merely asking a question here, as to whether something's worth pursuing or not.

What I mean in terms of interest rates, is previously I could get a loan from my bank or a bank, at a fairly reasonable rate. However with a low credit score, I was rejected and when I needed to borrow some money had to resort to short term, high interest lenders instead.

Clearly it's going to be a struggle to demonstrate this empirically.


I'm not struggling anymore, but thanks for the concern.