Default never added

CJPG20

Hi, I'm wondering if anyone can help. This is the first time i have done anything like this, so i hope it makes sense! 

My partner missed multiple payment in 2013 on a payday loan which was taken out earlier that year. From reviewing his credit accounts, the account was never defaulted and the missed payment status ran on the account until the account was settled and closed in 2017 (My partner was under the impression at the time that the lender went bust and stopped paying until a debt collection company contacted him years later, which is when the account was settled). It appears markers on his credit account go from 'unknown' for many months to '-6' markers, so we have been unsure for a while why/if the account was defaulted but it appears now is was not.

The issue we have is that no default was added, and if it was between month 3-6 of missed payments as expected, the 6 years would have no passed and this would not be showing on his credit file. As this was not the case, the account will remain until 2023 as this is 6 years after the account was settled. 

Is adding a default onto the account at this stage something we should be contacting the lender regarding? Is it possible as it was never added originally? We are wanting to apply for a mortgage. Any help or advice would be greatly appreciated!

Fighter1986

Raise a formal written complaint to the loan provider disputing the data.

Explain that it's your stance that after a maximum of six months missed payments, it's reasonable to consider that the "Relationship between lender and borrower has broken down", which is precisely what a Default Notice denotes.

Advise that you expect them to retrospectively apply a default date to the account of no later than the moment when the account fell six months into arrears.

Advise them that you provide 28 days for this data to be updated with the credit reference agencies, and explain that you'll escalate the matter to the ICO should they fail to comply.

CJPG20

Thank you for the help, it is greatly appreciated! 

When we have contacted the lender in the past in relation to this, they have told us to contact another company which i think is a debt management company that my partner had an agreement with to pay back the money. Should we insist it is the initial loan provider who adds the default to the account and raise the complaint with them? 
Thanks again

Fighter1986

Your dispute is with the owner of the data - which is the name of the company showing against the account on your partners credit file. 

Stay focused in your letter to them.

The issue is the lack of default date.

It has nothing to do with debt management.

Remind the lender that under GDPR they are the data owner, not the debt management company. 

If they reply again asking to speak to the debt management company explain this to them and remind them that the 28 day countdown to when you'll be referring the matter to the ICO is still ticking. 

Stick to letters in the post for all correspondence, obtain proof of posting ready for the ICO if you need to escalate the matter.