Trying to remove unfair default

EmeraldIvy

Hello,

I am reaching out for some help and guidance.

I am in the position I am ready to apply for a mortgage with my first home, however I have found a default has been placed on my credit file in August 2019!

I was in a shared property from August 2017-July 2018. During this period I paid for council tax and water, whilst the other tenant paid for the electricity (or so I thought! - the account was set up in their name only) as per an agreement at the start of the tenancy (not in writing unfortunately).

In August 2019, I received a letter from a Debt Collecting Agency advising me of an outstanding balance that was due from December 2017-July 2018. I immediately contacted the DCA and NPower, as I was unaware of any outstanding balance, and no bills had ever been sent to me prior to this at the property I lived in or moved into after this tenancy. NPower confirmed to me that they could see no record of any correspondence to myself, however I was still liable for the payment, which I did not dispute, Since this, I have been trying to get a copy of the bill so I can settle the outstanding balance, however the DCA has refused to provide this to me, and NPower has also failed to sent this to me, despite telling me they are going to send me a copy of the bill. To date I still do not have any copy of this bill.

This week, I undertook a detailed credit check, prior to applying for a mortgage for a home I have fallen in love with, to find that a default had been placed on my credit file in August 2019. I called NPower yesterday morning and had a really positive call, I spoke to the complaints team and explained the situation, the agent that I spoke to confirmed once again that no communication had been sent to me and that they were required to write to me within 6 months of the end of the contract in order to recover the amount. This agent explained to me that it was likely he would be able to revoke the entire sum and the default notice as they had not followed the correct process (I was only requesting the default removed).

Five hours later I received a further call from NPower, this time from a senior complaints handler, who told me that the default would not be removed. She stated that two letters had been sent to me, I asked which address these letters had been sent to and the first address, which was sent in December 2018 was an address I have never heard of, and have no connection to. A second letter was allegedly sent to my current address in March 2019, however I have not received any letters from NPower at this address, only the DCA. I am confused how the advisors I spoke to in August and in the morning confirmed that no letters were ever sent to me and the final advisor could find a letter which they had sent and I had never received.

From my understanding of defaults, the definition is "A default is a negative payment marker that arises as a result of unpaid arrears on your credit file. When a default is issued it usually means that the lender no longer sees the borrower as a customer, but instead sees them as a debtor.". Is it fair that a default is issued when I was not aware of the arrears, I understand a Default Notice is not required, but is best practice, but surely a bill would have had to been issued in order to give me a chance to repay the balance before I can classed a debtor?

To clarify, I am not disputing the amount due to be paid (I just want a bill in order to pay this), I understand as part of my tenancy agreement that I am jointly and severally liable for the sum, I am just disputing the fairness of the default notice when I was unaware of the debt in the first place.

I really hope someone can give me some guidance as to how to 1. get my credit file in as good as position as possible quickly, and 2. best resolve the outstanding bill (which I have not received).

I am completely heartbroken that I am so close to getting onto the property ladder, having fallen in love with a particular property and concerned that bad flatmates error will affect my opportunity to obtain a mortgage.

Many thanks in advance!

Willing2Learn

Hi,

If it were me, I would request from NPower a copy of my final bill and statement in writing, via Royal Mail. I would also submit a written Subject Access Request, asking for copies of all written and telephone correspondence. This would result in having copies of any letters that they say they have sent you. You would then be able to check whether they followed the correct procedure.

At the same time, I would contact the debt collectors, in writing, to say that you are disputing the account and are waiting for a response from NPower. I would request that they suspend all collection activities while the account is disputed.

Do wait for other members to respond though, as it is possible I am barking up the wrong tree.

EmeraldIvy

Hi Willing2Learn

Thank you for your response.

I wrote to the DCA in August requesting a copy of the bill and requesting that they suspend all collection activities while the account is disputed which they suspended for 28 days, however they failed to provide me with the bill. Therefore the process of requesting the bill and suspending collection activities began again, however that has not stopped the default being applied to my account prior to any correspondence which due to currently applying for a mortgage is my primary concern.

I will however submit a subject access request to NPower and request a copy of all correspondence to be sent to me.

PixelPound

Two points. First do you have a mortgage broker, if so have you explained the situation to them, they may say that the default may not have the effect you are thinking so long as it is settled. Have you applied for a mortgage, or if when say "ready" do mean right at the start of the homebuying process and haven't even found a house you like yet?

Second Ofgem rules deem all adults at the property can be held liable - irrespective of what your tenancy stated. You may say allegedly but they don't have to prove you received it, only it was posted. You can take the matter further, get a deadlock letter and raise it further, but you may also want to consider point 1. After all if you are going to pay, it is your only default, and maybe not actually applying for a mortgage for a while, then it could be a lot of effort for in the grand scheme of things a small effect. That's not to say not dispute it, if you believe it incorrect, but you may want to weigh up the options of all the stress and worry of disputing it, or at least know the full effect of all the options to make a rational decision.

[Deleted User]

If the bill isn’t in your name then it’s not your liability.

So how have they managed to add a default in your name if you weren’t named on the billing account?

EmeraldIvy

Hi Nic C

Thank you for your response.

Yes I do have a mortgage advisor, her advice was to find out more information and see if I can get this removed as it may affect my ability to get a mortgage and it will affect the interest rates. I have found the property and I was in the process of getting a decision in principle when I found this default so currently held on making an offer on a house I really don't want to lose.

The debt as it stands is not settled as to date I have not been provided with a copy of the bill - only a DCA letter. I have requested a copy of the bill on numerous occasions. In the conversation yesterday NPower confirmed they will send me out another copy of the bill.

EmeraldIvy

Hi Gary

Thank you for your response.

That is a very good questions and one that is puzzling me too!

According to the DCA they have found me through experian and found that I lived in the property and have pursued chasing me for the debt. They have also explained that as only one person can be on the account, the name they have found is mine. I do not understand how it was ever put in my name, without my knowledge, when this should have been in my former housemates name throughout the tenancy.

I am disheartened that this has seemingly only affected my credit rating to a detrimental effect without my knowledge.

Willing2Learn

Just thinking about this some more. And thinking purely on the basis that the default negatively impacts on your mortgage application and how, in an ideal world, you need the default removed.

An alternative is to negotiate with the DCA, in writing. Since the account is disputed you could agree to settle the account, under protest, with a guarantee that the default will be removed from your credit file. Obviously, you would need to have that guarantee in writing, before the account would be settled. You would then still be able to continue with your complaint, direct with NPower, with the possibility to escalate to the ombudsmen should a satisfactory resolution not be forthcoming.

PixelPound

Are the DCA acting on behalf of NPower or are they a debt purchaser? If they are acting on behalf of, not sure the DCA could remove the default.

Has this debt been admitted? Whilst all adults are responsible, usually one person is named as responding to the Occupier Letter and that's who they chase. So is it a case they have done a quick search and the easy option was to send you letters? If their name was on the account, then why was the default not in their name - was the address they wrote to that you were not at, theirs?

[Deleted User]

That makes no sense.

They can’t just put the debt on you because you lived there and can’t trace the other person.

sourcrates

What is the name of the DCA chasing you please ?