Delinquent v’s default

JamesyMac

Folks,

Around 2016/17, I took out loans with Provident, and I think I stopped paying them around April 2017.

Every month on my credit file, they’re still being updated as ‘delinquent’ as opposed to having been defaulted, and I’m wondering if I can get this changed without settling the clock back to now.

I wouldn’t mind negotiating with them and paying the debts back, but I want to come to any negotiations from a position of strength. 

Are there any laws that state that they should have been defaulted in 2017?

Thanks for any advice,

James.

sourcrates

Hi,

A delinquent account is one that has not been paid, or paid on time, for a considerable period.

FCA guidelines state a default should be applied after between 3/6 missed consecutive payments, yet these are only guidelines, and creditors do not have to follow them to the letter, they can mark your file in other ways, such as "AP" if your paying the debt under an arrangement, or delinquent, if your not.

Provident have entered a "scheme of arrangement" to avoid bankruptcy, so its unlikely they will be paying much attention to how credit files are marked currently.

You only have another 16 months or so before these become statute barred, its not clear who has bought their loans book as yet, but why rock the boat now, the whole entry, paid or not, will drop off your file in April 2023.

You can make a complaint, but that would re-set the statute barred clock, put you back on the radar, and you`ll  most likely get chased for the debts again, however, its your call.

JamesyMac

sourcrates said:

Hi,

A delinquent account is one that has not been paid, or paid on time, for a considerable period.

FCA guidelines state a default should be applied after between 3/6 missed consecutive payments, yet these are only guidelines, and creditors do not have to follow them to the letter, they can mark your file in other ways, such as "AP" if your paying the debt under an arrangement, or delinquent, if your not.

Provident have entered a "scheme of arrangement" to avoid bankruptcy, so its unlikely they will be paying much attention to how credit files are marked currently.

You only have another 16 months or so before these become statute barred, its not clear who has bought their loans book as yet, but why rock the boat now, the whole entry, paid or not, will drop off your file in April 2023.

You can make a complaint, but that would re-set the statute barred clock, put you back on the radar, and you`ll  most likely get chased for the debts again, however, its your call.

Thankyou! The thing that worries me is that my file is updated to a ‘6’ each month, so I’m not sure if that account will ever become statute barred.

fatbelly

The law regarding statute barred debts is the Limitation Act 1980. If you received a claim after April 2023 you would respond by asserting it's SB and see how the other side responded. Only a court can ultimately decide if something is SB or not.

I can see what you're saying in that it doesn't look like Provi ever sorted this out, and just walked away from it. I would suspect that it's on someone's books somewhere but agree with sourcrates that it's not in your interest to go digging. If anyone did  come out of the woodwork that would be the time to get the file marked properly and do a settlement deal.

JamesyMac

I sent a wee screenshot of what I’m talking about (all personal info redacted). I said they were putting a 6 in each month; it was just a 1.