Credit Default Date

Goodman0890

I had a loan with Lending stream and should have had a default marked on my file in 2013 now having paid the loan off in 2017 they are stating that on my file. I’m currently trying to get a mortage with my partner and they are refusing to rectify this. As the loan went unpaid from 2013-2017 it should have been defaulted somewhere down the line. I will post there recent email to myself. Could anyone give me any help or guidance in what to reply?? 

We are sorry that it took longer than usual to respond.

We write in reference to the FOS complaint raised on your behalf. We understand that you have few questions on default not being placed on your credit file for loan account Let’s now look into your loan summary -

The loan commenced on 14th October 2013. The only payment we received towards the above loan was on 25th October 2013. As we did not receive any further payments the account went into arrears status.

Further, you got enrolled into a Debt Management Plan (DMP) on 6th December 2013 and the loan was passed to Credit Resource Solutions (CRS). You then started making payments from 12thFebruary 2014 onwards. However, as the payments were not made in accordance with the original repayment schedule, the late payments were reported on your credit file.

Usually, when a payment is missed, the account gets into an arrears state. If that arrears state continues for 65 days, a Notice of Default (NOD) will be issued initially to remedy the situation and if no action is taken further a Notice of Termination (NOT) will be issued. Finally a default will be placed on credit file on the 180th day from the date the payment was missed.

However, in your case, as the loan account was under DMP, therefore, neither we have issued any Notice of Default nor we have placed any Default mark on your credit file.

We hope the information clarifies as to why there was no Default reported on your credit file.

Further, the loan returned from CRS on 5th October 2016 which in turn was sold to MotorMile Finance Ltd (Lantern) on 4th December 2017. From your previous correspondence we could note that you have settled the loan with MotorMile Finance Ltd (Lantern), however, we are unable to place any default on your credit file as detailed earlier.

If you have any additional information that would be helpful in investigating this complaint, please send that to us. Otherwise, please consider this as our final response on the matter.

You have the right to refer your complaint to the Financial Ombudsman Service, free of charge – but you must do so within six months of the date of this email. If you do not refer your complaint in time, the Ombudsman will not have our permission to consider your complaint and so will be able to do so in very limited circumstances. For example, if the Ombudsman believes that the delay was as a result of exceptional circumstances.
If you need to contact us, the best way is by replying to this email directly. You can also send us a message from our ‘contact us’ page in our website.

We hope this is helpful and thank you for bearing with us.

Goodman0890

If anyone can give any help or advice it would be very much appreciated? 

[Deleted User]

 There's no quick answer. Assuming you followed their instructions, you need to wait for FOS to get back to you.

sourcrates

There are no hard and fast rules on when a default should be registered, only guidence.

Most lenders operate their own policies, in line with guidence on this, your loan did not meet their criteria for default, its that simple, you, in effect, didn`t stay off the grid long enough.

You could argue that this policy was unfair to you, as you were treated worse than someone who had ignored their debt completly, they would have been defaulted, and there file have been clear of negative information, before yours will be.

I doubt the default will be added retrospectivly, possibly the best you can hope for is the removal of the DMP/AP markers.

But if you don`t ask you don`t get.

DaMoon

It doesn't mean you can't get a mortgage. Go to a mortgage broker who can match you to the right lender. Indeed, you may not get a mortgage with a mainstream lender, but there are lenders out there who would be interested. Approach a broker.