United Utilities on credit files

meads75

Hi, I am looking for a little advice if possible for how UU conduct themselves on how they report back to the credit reference agencies an whether the methods seem allowed. I have been helping my brother go through and repair his credit record which now stands in a fair position with one exception being the information UU have put on his file.

It appears years ago 2015 my brother never paid his water bills, so this has created an issue on his record however this is where I am a little confused when trying to assist myself as when I spoke with the debt team they stated that this debt was marked as defaulted back in 2015 however on his credit file he has a closed account from UU in default status but dated April 2017.

If the default was logged when the debt team stated it went into default on their system this would be statue barred for 6 years and therefore removed however with them only dating this 2017 it still remains a negative marker on his file so the question is, is this allowed to be delayed or even dated later.

The next issue I notice with UU he then had two further accounts same person same address after this one closed status satisfied, but since trying to sort his file a couple of years ago I got him to call them to address the debt which they agreed to an arranged payment scheme so the third record is classed as open with an I indicator for arranged payment.

When speaking to their debt team they told me they have a policy to update old debts with new account numbers and then report against these also so in total he has three records on his credit record all from UU for the same debt and account one seemingly showing defaulted at a later date then another stating I indicator on his file.

This all seems a little unfair he is trying to do the correct thing and get straight but then it appears they mark the default later than they should on one account then another negative marker as in the I indictor on another account reference which will always show as a negative marker each month until he finishes paying the debt.

Please could someone advise is this a legitimate way to help their customers or are the incorrectly penalise him with wrong dates on the default and multiple account reference on his file, I am thinking of contacting the legal team or the financial ombudsman to challenge this as while I understand it was his own fault initially I can not see why 7 years later he is still being punished for this so any advise would be greatly appreciated before I take this further. 

Kindest Regards

[Deleted User]

The default should have gone 6 years after it was registered but it sounds like they sold the debt and the debt buyer wrongly put a new default on with a start date when they bought it.

The red flag is the fact that the UU account is closed (which is correct if it was sold to a debt collector) but should be marked as settled and the debt buyer should be the ones registering the default but with the same default date, they cannot add a new one.

If they did actually close it and create a new one for the debt (which doesn't make sense) then they have done wrong, they cannot create a new account and start a new default - that would be a complaint to the ICO after complaining to the lender

Are you 100% sure they did it and it's not a debt buyer?

If he has an arrangement to pay though and has been paying it, do note it is NOT statute barred, just the account should have been removed

meads75

Hi Fartetch,

Thank you for your reply however just for clarification this has never been with a debt collectors always with UU never CCJ'd just defaulted on his credit file in april 17 on the first account number but when I called they said his account had defaulted on their system Feb 2015 so not sure why they would wait over two years to put the default on his file and according to equifax this account is closed since UU has added to further account numbers and records no starting balance etc one status settled then the final open one stating agreed to pay back in November.

Reference the paying of this it was to try and sort it out and I understand by accepting to pay you take ownership of the debt which is fine he is paying it its just I don't believe if they have on their records it was back in 2015 they put him in default why have they told CRA's it is 2017 and also how are the allowed to create multiple records for the same account and just change the reference number surely this is not legal like I say this seems to level two negative for the same debt ie the default on one then the arranged to pay on the other when realistically it all should have come off from back in 2015 anyway if that makes sense.

Many Thanks, Mick

[Deleted User]

As I said, you should complain to them and the ICO, they are not allowed to create a new account with a new default date. At the same time, ICO guidelines say an account should be defaulted after 2-3 missed contractual payments, usually 2-3 months, not 2 years after so they should backdate it if they accept it was defaulted