Default Notice 7 years into a payment arrangement

Robyn45

Hi, I had a debt with studio from 2005, ran into problems 2010 with balance around £4500. I can’t recall if they issued a default notice then but as it was hugely behind, they should have. I made an arrangement to pay £20pm and they agreed and it’s been paid ever since and still is. No payments missed or late. They sold the debt in 2017 to Lowell and put a default on my file but never sent me a default notice. They merely sent a letter stating the debt would now be with Lowell and my payment arrangement of £20 would continue with Lowell. It has and I now owe around £1200. I had no idea until recently a default was put on my credit file in 2017 so in effect, it means my rating will be affected by this one debt for 13 years before it’s removed. Had they defaulted in 2010 when I went massively in arrears, my file would have cleared in 2016. Now it will be 2023! Is this fair and can I do anything. I definitely didn’t get a default notice in 2017 or I would have queried it as I was keeping up with the arrangement. I’ve asked for a copy. Apparently, they have to issue a default when they sell the debt.  Can I argue that they should have defaulted me in 2010 (I think they did but can’t find any proof) and it’s unfair to have my file/rating punishing me for 13 years? I want this removed. Any options? Thanks 

[Deleted User]

Ask them to backdate the default.

D3xt3r5L4b

Did you ask/choose to do a payment arrangement?

fatbelly

Do a subject access request on Studio - see if it shows up the original default

Robyn45

Yes, I offered a payment arrangement. They periodically wrote over the 7 years asking if i was in a position to increase and if so, contact them. I ignored them and continued to pay £20 each month. 
I can ask them to backdate the default but Studio are a notoriously unhelpful company. They seemed to believe they could issue multiple defaults lol as they said they would send me a copy of my latest default! I said no, I want copies of all defaults.

SAR is a very good idea. Will do that. They are likely to say as it went into arrears 10 years ago, they don’t have records back that far.

kaMelo

Surely the default date is almost irrelevant, the AP marker will be present until the final payment is made + 6 more years.

DebtHurricane

I’m fighting them at the moment myself. I set up a payment arrangement after some missed payments and then realised it’s better for accounts to be defaulted. I cancelled the payment (had only made one payment) and have missed over 7 months of payments yet they still refuse to default. 

They say they’re reporting an accurate reflection, but it’s so unfair. I’m taking them to the ombudsman 

SpreadableToast

Robyn45 said:

Hi, I had a debt with studio from 2005, ran into problems 2010 with balance around £4500. I can’t recall if they issued a default notice then but as it was hugely behind, they should have. I made an arrangement to pay £20pm and they agreed and it’s been paid ever since and still is. No payments missed or late. They sold the debt in 2017 to Lowell and put a default on my file but never sent me a default notice. They merely sent a letter stating the debt would now be with Lowell and my payment arrangement of £20 would continue with Lowell. It has and I now owe around £1200. I had no idea until recently a default was put on my credit file in 2017 so in effect, it means my rating will be affected by this one debt for 13 years before it’s removed. Had they defaulted in 2010 when I went massively in arrears, my file would have cleared in 2016. Now it will be 2023! Is this fair and can I do anything. I definitely didn’t get a default notice in 2017 or I would have queried it as I was keeping up with the arrangement. I’ve asked for a copy. Apparently, they have to issue a default when they sell the debt.  Can I argue that they should have defaulted me in 2010 (I think they did but can’t find any proof) and it’s unfair to have my file/rating punishing me for 13 years? I want this removed. Any options? Thanks 

As you have suffered no adverse effects from this reporting of your credit file you're dead wrong.  Your credit file has not been affected at all until now, when you deem it to be an issue, even though you're not actively seeking credit.

They also don't need to send a default notice to sell a debt on, who told you that? Creditors are free to sell a debt on to anyone at any time.

Robyn45

Had they defaulted in 2010 when I went into serious arrears, the whole thing would have been removed from my credit file after 6 years, whether wholly unpaid, settled in full or still in an arrangement. It’s 6 years from default or settlement if no default is issued. There is meant to be a sense of fairness over reporting on credit files so I wonder if the Ombudsman would make them remove the default because my credit rating has already been badly affected by this debt for 10 years already and will be for another 3, if the default stands. All other creditors issued a default straight away when I ran into financial difficulties 10 years ago. I’ve worked really hard to clear my debts and have over 7-8years of maintaining all payments but this one debt remains on my file after 10 years hindering my credit rating. It will be 13 years since I went into arrears that this will have been on my file affecting my rating - that’s surely not reasonable. I wonder why Studio don’t want to default as soon as accounts go into serious arrears? 

Robyn45

SpreadableToast said:

Robyn45 said:

Hi, I had a debt with studio from 2005, ran into problems 2010 with balance around £4500. I can’t recall if they issued a default notice then but as it was hugely behind, they should have. I made an arrangement to pay £20pm and they agreed and it’s been paid ever since and still is. No payments missed or late. They sold the debt in 2017 to Lowell and put a default on my file but never sent me a default notice. They merely sent a letter stating the debt would now be with Lowell and my payment arrangement of £20 would continue with Lowell. It has and I now owe around £1200. I had no idea until recently a default was put on my credit file in 2017 so in effect, it means my rating will be affected by this one debt for 13 years before it’s removed. Had they defaulted in 2010 when I went massively in arrears, my file would have cleared in 2016. Now it will be 2023! Is this fair and can I do anything. I definitely didn’t get a default notice in 2017 or I would have queried it as I was keeping up with the arrangement. I’ve asked for a copy. Apparently, they have to issue a default when they sell the debt.  Can I argue that they should have defaulted me in 2010 (I think they did but can’t find any proof) and it’s unfair to have my file/rating punishing me for 13 years? I want this removed. Any options? Thanks 

As you have suffered no adverse effects from this reporting of your credit file you're dead wrong.  Your credit file has not been affected at all until now, when you deem it to be an issue, even though you're not actively seeking credit.

They also don't need to send a default notice to sell a debt on, who told you that? Creditors are free to sell a debt on to anyone at any time.

Step change said a debt can only be sold if a default notice has been issued. I have been affected by this debt on my file because an arrangement recorded reflects upon your credit score and ability to obtain credit. It shows you couldnt afford to maintain the proper payments required and have run into arrears so made an arrangement.  That arrangement has been showing on my file for 10 years.  It’s been affecting my credit since 2010. Why do you think it hasn’t affected my credit? I assumed it had been removed by now but only noticed recently it hadn’t when I happened to be checking two other debts that defaulted all those years ago and been settled, had been removed and noticed this one still remained. Step change said studio issued a default in 2017 in order to sell to Lowell. I merely checked recently as I wish to apply for a remortgage and have been waiting for my file to have a better score and clear of old debts.

Robyn45

DebtHurricane said:

I’m fighting them at the moment myself. I set up a payment arrangement after some missed payments and then realised it’s better for accounts to be defaulted. I cancelled the payment (had only made one payment) and have missed over 7 months of payments yet they still refuse to default. 

They say they’re reporting an accurate reflection, but it’s so unfair. I’m taking them to the ombudsman 

I wonder why they won’t default? It’s very odd.  I don’t think they have to default if they don’t wish do they? It’s normal and expected they default when an account falls 3-6 months in arrears. I think they deliberately leave defaulting so they can add it much later and your credit file reflects a bad history for many more than the requisite 6 years from default. Like a punishment against the debtor!