Default after withdrawing from credit agreement

otternonsnse

Hello,

I took out a loan from 118 money a few years ago, however I withdrew from the agreement within the 14 day cooling off period. I realised it was a mistake to withdraw, and attempted to continue with the agreement, but was told I was not able to and had to return the funds within 30 days. Unfortunately, I did not return the funds within 30 days, and a default was registered against my credit file. Obviously, it was my mistake not to return the funds, however I am hoping to question the legitimacy of the default marker, given that legally I had withdrawn and was not bound to the credit agreement. Does that have any grounds? This is the last bad marker on my credit file after years of repair from the damange caused by my old days of being irresponsible. 

I'm just wondering if anyone has any advice on how I could proceed to get this removed if at all possible? The funds are still oustanding at this time

[Deleted User]

You didn't withdraw from the agreement, as returning the funds is a condition of withdrawal.

Are they still chasing the debt? You risk it turning into a CCJ, which will be another 6 years on your file, so you need to tread carefully. 

otternonsnse

Thanks for the response. So, their stance is that I have withdrawn from the agreement. I wanted to continue it at the time, but was told I could not. I have the funds to clear the debt, so if it ever reached CCJ stage I'd make sure it was paid off.

I want to ideally clear the balance and have the default removed

sourcrates

You cannot have the default removed when clearly you didn`t comply with the terms and conditions of your loan agreement.

Your credit file has to be an accurate record of your financial conduct, the ONLY way you may get it removed is if 118 money agree to do so as a gesture of goodwill, and that would usually be in return for settling the debt, however that would be entirely at there own discretion, and the more time that passes, the less chance you have got.

penners324

This debt has been outstanding for a few years and you're quibbling about a default marker?

phillw

In this circumstance, a default is probably the best outcome.

How about a fraud or theft charge? Would that be better?

I am wondering whether your story is true...

User_101122

This has got to be a joke right ?

You’re lucky you are only dealing with a default.  If you had kept my money for several years a default would be the least of your worries.

MalMonroe

"legally I had withdrawn and was not bound to the credit agreement" - but you still had the money. Which you say you still have not repaid. How do you think that you were not bound to any agreement? 

Have you been advised that 118 has added interest to the still outstanding funds? I think they have been really patient and that if all they have done is put a default on your credit file, you are very lucky.

If, as you say, you have the funds available now to clear the debt, why not just do that and then it's all over and done with. No point hanging on until other penalties are placed on your file. As sourcrates says, 118 may remove the marker if you settle the debt but even if they don't you'll have done a good thing.