BW legal/PRAC Financial late payment markers

madambeanie

I've had a look through the forums for a long time now but cannot find anything which seems to match my situation so I would really appreciate some advise, or even confirmation if my viewpoint is correct here...

My credit file (Equifax) shows an account in arrears with PRAC Financial, PRAC have been updating my file with a new late payment marker (4 month arrears) every month since July 2016 for an account originally with Payday Uk. Since then the account has been assigned to BW legal who I set up a payment arrangement with.

My issue is that my credit file does not show that this account is in default it simply says it is in arrears, even though BW Legal confirmed it was defaulted in November 2016. My concern is that these late payment markers they are placing every month will not fall off until 6 years after they are placed, and indeed that the entire account will not fall off my file in 2022 like I believe it should.

I've contacted BW legal about this who told me it was correct to be recorded this way, even though I advised them that other accounts I have which are in default are not recorded like this, they simply show they are in default from whatever date and that is it, there are no monthly credit file entries being placed.

Am I correct in saying this is wrong? I feel like my credit file should at least show the default date? Indeed CheckMyFile says ' reported until 6 years after account closure' for this account which I interpret to mean even if I pay BW legal in full today, these late payment markers will remain on my file until 2026 instead of 2022?

If I am correct what should I do next? BW legal/PRAC have stated the information is correct so even a dispute through Equifax will lead to no change to my credit file I would imagine.

[Deleted User]

It's correct that there are monthly default or late updates.

The account will still drop off 6 years from default.

madambeanie

thank you for responding to me, will it still drop off even though the default date does not show anywhere on my credit report? 

[Deleted User]

If you cannot see the default date at Nov 16, query it with the owner of the debt and raise a complaint if necessary.

madambeanie

Just as an update to this, I have had a response from the original creditor who confirmed they never actually defaulted the debt. They sold it to a debt collector when only in arrears, so I will now progress to a formal complaint to get a backdated default applied to my account

lisa0191

madambeanie said:

Just as an update to this, I have had a response from the original creditor who confirmed they never actually defaulted the debt. They sold it to a debt collector when only in arrears, so I will now progress to a formal complaint to get a backdated default applied to my account

Hi Madame 
I have the exact same thing happen with the same company for a loan that should be a default from 2015!
I cannot get in touch with anyone at Prac and this is stopping my mortgage application being approved!
Did you manage to get it changed to a default on the original date? 

sourcrates

I think they have confused the meaning of the word "default".

They are reffering to you being in default of your payments, not to a default on your credit file, two seperate things.

If no default date shows on your file, and they are adding AP markers, then its not defaulted, its been marked as arrangement to pay.

You should pursue that complaint yes.

03danpad

Hi, I was wondering if you ever got this resolved? I have exactly the same thing going on but with The Money Shop. So I took a loan out in 2016 and didn't pay. In 2017 13 months later to be exact. It was sold to PRAC. I have been making payments since of a small amount as that's all I can afford. Yet every month they mark a missed payment on my report. I have contacted the company now managing the money shop who have advised they cannot do anything as it is PRAC marking my credit report and not them. They can't retrospectively add a default and prac are saying they cant do anything until paid in full. I'm at a complete loss but cant see how its legal they can mark a missed payment every month even though I am making payments

sourcrates

03danpad said:

Hi, I was wondering if you ever got this resolved? I have exactly the same thing going on but with The Money Shop. So I took a loan out in 2016 and didn't pay. In 2017 13 months later to be exact. It was sold to PRAC. I have been making payments since of a small amount as that's all I can afford. Yet every month they mark a missed payment on my report. I have contacted the company now managing the money shop who have advised they cannot do anything as it is PRAC marking my credit report and not them. They can't retrospectively add a default and prac are saying they cant do anything until paid in full. I'm at a complete loss but cant see how its legal they can mark a missed payment every month even though I am making payments

You may be making payments, but they are not for the full original contractual amount, your payments were due on specific dates in 2016/2017 so you are 3 years in arrears.
Your payments now are paying much less, so you are way behind on your original contracted repayments, that is why its been marked as it is.

It makes no difference what arrangement you come to with them after the fact, your credit file is marked in accordance with when the original contracted payments were due, and obviously you are way behind in that respect, so your file is been marked correctly.

Damkuff15

Hi, if anyone can help, i also have a debt with this company.
I  failed to pay back a payday loan and prac took over this debt in 2015. Since 2017 they have been putting missed payments onto my credit file.

I have never spoken to or set up any payment plan with this company, so are they still able to do this?
Thanks 

Batesy1976

Damkuff15 said:

Hi, if anyone can help, i also have a debt with this company.
I  failed to pay back a payday loan and prac took over this debt in 2015. Since 2017 they have been putting missed payments onto my credit file.

I have never spoken to or set up any payment plan with this company, so are they still able to do this?
Thanks 

Yes.

They will have bought the debt. They can now report to the CRAs as the original creditor could.