Lending Stream refusing to correct credit file error

H4bbs

Hi All,

For the sake of brevity I'll keep the background short - my girlfriend and I are in the process of buying our first home, we found a place but got turned down for the mortgage. After some investigating I found a default on my Experian credit report that I had no knowledge of, issued by Lending Stream in May 2018.

After some too'ing and fro'ing I obtained the notice of default that Lending Stream apparently sent me and it's got some worrying errors in it, chief amongst which are that the date of default was January 2018 and my address is wrong. Not completely different, but I live in a big housing estate and it was wrong enough so that it wouldn't have gotten to me. Now the debt was settled by myself with another company, Asset Collections and Investigations (ACI) as soon as they got in touch with me back at the time and I was under the impression I was simply paying off the debt not that it had ever been defaulted.

Now I believe that at the very least the date of default should be amended and I also think the default should be struck from my record entirely - but Lending Stream have stated, "Once ownership of a particular loan is transferred to any Debt Collection Agency (DCA), we not only entrust the concerned DCA to collect the outstanding balance towards that loan but we also transfer the legal rights to update the credit file for that loan. Therefore, the onus to amend the credit rests with them." but ACI are stating that they do not report to any credit referencing agencies so can't make any amendments!

I've written to Experian as well and am awaiting a response but I don't hold out much hope of anything from them bar maybe some advice. Feel like I'm banging my head against a brick wall and everyone just keeps saying it's someone else's job to sort it out.... Does anyone have any advice on what I should do next or if there's anyone I should contact?


Cheers,
Habbs

sourcrates

Usually by the time debt collectors become involved,its likely the debt will have defaulted.
Errors in a default notice do not make it invalid, it could be rectified by sending another.

H4bbs

Thanks for the response!

I understand this, but how could they rectify this if I've never been made aware of it? However my main issue lies with not being able to make my credit report accurate and correct...

[Deleted User]

Your credit report is correct and accurate, as you defaulted on the account.

Use a broker experienced in adverse credit to place your mortgage.

H4bbs

But it's not, the dates don't match up at all!

[Deleted User]

If you believe the default date should be different, then ask them to amend it (typically within 6 months of the missed payments).

H4bbs

Deleted_User said:

If you believe the default date should be different, then ask them to amend it (typically within 6 months of the missed payments).

Thanks for the response, but as I mentioned in the original post I had no knowledge of this default until a few weeks ago, so couldn't do so within 6 months. I have asked them to do this but they're saying it's not their job to amend it.

[Deleted User]

The default should be within 6 months of when you missed payments. 

Not you contacting them to ask them to move it.

MEM62

H4bbs said:

Deleted_User said:

If you believe the default date should be different, then ask them to amend it (typically within 6 months of the missed payments).

Thanks for the response, but as I mentioned in the original post I had no knowledge of this default until a few weeks ago, so couldn't do so within 6 months. I have asked them to do this but they're saying it's not their job to amend it.

I think you might be missing the point.  The fact that there are errors on the default notice does not mean that the default is invalid.  Even if the date is wrong, the fact will remain that you defaulted on the payments that you were contractually obliged to make in the original agreement.   And if the date were to be amended the default would still be there - and you not knowing about is is not relevant. 
As already advised, your best option at this stage is to see a mortgage broker that specialises in this area.  A mortgage will not be impossible but your panel on lenders will be restricted and you may end up with a higher mortgage rate.     

xlnc99

i believe you are all in correct as i have been researching this matter for the past week as i am in a similar situation. Unless someone can correct me  - This is the information i have gathered so far. There has to be a procedure of a default process. The fact there are errors in the default process is grounds to get it removed. There is a strict process involving issuing a default, its not a simple case of a lender just issuing a default on your credit file. IF they have not followed the process then the default is invalid. Process includes certain wording, dates and information on the letter they have to send to you. There has to be some sort of default notice sent to you which that shows certain information on that letter regarding the debt and the next steps. The final point is, they must give you a notice in the letter to clear the debt within 28 days to clear the debt before a default is registered.

Takmon

H4bbs said:

Deleted_User said:

If you believe the default date should be different, then ask them to amend it (typically within 6 months of the missed payments).

Thanks for the response, but as I mentioned in the original post I had no knowledge of this default until a few weeks ago, so couldn't do so within 6 months. I have asked them to do this but they're saying it's not their job to amend it.

You obviously knew that you hadn't been paying the debt as per the original agreement so what did you think would happen?