Default Help Needed!!

JJM26

Hi,

Sorry I’m advance for the long post,  but need advice,  so thought it best to give you detail.

I had several letters regarding a debt.  I never recognised the debt (it transpires it was from 2011) and had been bought over a few times,  so had no immediate recollection or recognition of the name, Arrow Global.

Got a letter after leaving hospital (heart attack),  stating a default would be applied to by account and further action taken if not resolved by March 17th

I contacted the agency dealing on behalf of Arrow Global (debt owner),  who were NCO Europe.

I spoke to someone and queried the debt as I never recognised it as my own.  He informed me of the original source of the debt and I recognised it.  When he told me it was from April 2011,  I asked if it was statue barred.   He didn’t know and had to double check.  He then couldn’t confirm why I was being chased for it,  but did see a £1 payment within the last 6 years so suggested that’s why it’s still active.  He said he would need to open an investigation with Arrow Global to fully understand the status of the account.

I asked if I would get confirmation in writing of the investigation outcome.  I was advised only if it was closed and barred.  If not,  he would call me back and update me on the next steps required. 

When I was advised this could take upto 30 days,  I advised of the date on the letter was within March,  as the investigation could still be ongoing & asked what I should do as I wanted to avoid it going any further and wanted to resolve it before the deadline.

He was non commital at this point and stated that if it was barred no action would be taken anyway,  so not to worry.  I had to re-emphasise my concern and stated “surely I’m not expected to pay a balance in full whilst you are querying the validity of it?”

At this point I was advised that the investigation query being sent from NCO to Arrow would include notice of the deadline & insist this was resolved prior to that date.  This would then give me time to clear what I had to,  without further impact.  He then said “they will come back to us within that timeframe and we will let you know so you can make your decision according to the response and you then have time to make the payment before the account defaults”. 

I took no immediate action and waited on my update.  It never happened.  I then got a letter around 2 weeks later advising a default had been registered.  I wasn’t amused and made a complaint to NCO based on my conversation detailed above.

This is officially still ongoing,  but one advisor did elude to the fact it probably wouldn’t be upheld,  but I await a final outcome as to why I was misled and why I wasn’t given the timely update I was promised to prevent this from happening.

I did learn though at that time that the investigation has been concluded,  just not communicated to me and the account was due.  Given my circumstances having just been released from hospital at the start of the year and having had 3 months off work,  I offered a payment to settle in full.  This was passed to Arrow for consideration and then on 26th April it was accepted.  I cleared the account on 4th May,  very swiftly from when I was given the update promised back in March.

My credit score has crashed from 937 to just 479 (Experian,  down 458) since this has been added.

Given the situation,  is there a way I can apply to have this default removed?  I have worked tirelessly over the past 5-8 years to improve my score to what it was just a few months ago and feel that if I had been given the information promised to me, when it was promised,  this would have been cleared.  My swift payment puts testament to that.

Any help greatly appreciated. 

Thanks 

JJM26

sourcrates

How very convenient this £1 payment was made within the last 6 years, and of course you must remember making it, yes ?

No, of course you don`t, I'm willing to bet you never made that payment, and the debt was statute barred all along.

Unfortunately it looks like you fell for the oldest trick in the DCA book, a phantom £1 payment, to an account that otherwise would be statute barred, fictitious timeframe to settle the debt, to put pressure on you, so you don`t look too deeply into the matter, it happens a lot.

The default stands unfortunately, it will stay for 6 years now, there`s nothing to be done, as you`ve made the payment and settled the debt, only time will heal this now.

You should never deal with debt collectors on the phone, everything should have been in writing, they may lie to you on the phone, they would not do so in a letter.

JJM26

I was hoping for a better response,  but I appreciate the reply.  One point that may still help me,  if I can clarify.

I believe the default date should be the same as the original creditor would’ve applied 10 years ago.  If they never applied one,  the DCA should use the ICO rule & apply the default the same as the original creditor would have.  Is that correct?  It doesn’t seem right that a debt that’s 10 years old will now impact me for a further 6.  

sourcrates

JJM26 said:

I was hoping for a better response,  but I appreciate the reply.  One point that may still help me,  if I can clarify.

I believe the default date should be the same as the original creditor would’ve applied 10 years ago.  If they never applied one,  the DCA should use the ICO rule & apply the default the same as the original creditor would have.  Is that correct?  It doesn’t seem right that a debt that’s 10 years old will now impact me for a further 6.  

Sorry, that was really for the benefit of anyone else who may read this thread.

As for the default, if a default was applied ten years ago, it will be difficult to prove that, due to the passage of time, as there will be no record of it now.

If it didn`t default originally, you may have an argument to get it backdated, and i stress "may", but its unlikely Arrow Global will do anything, as they were not involved with your account back then, anyway, complaints are free of charge, you can but try, but don`t build your hopes up.

If they reject your complaint, you can always escalate the matter to the ICO.

JJM26

Hi all

just an update on this.

I have had my complaint upheld and had confirmation from the debt owner the default will be removed fully within 12-14 days.

so happy.  Morale here is,  if you feel you’ve been wronged, don’t back down!

cheers
JJM26

sourcrates

Well done, good result for you.