£281 old debt and now can't get a mortgage

SadNicola

Hello, I hope someone can help me.

I have put a chronology below.

Because of this £281 old debt I am struggling to get a mortgage, I would be very grateful if someone could advise me. Thank you. 

• Debt with [COMPANY A] – amount owed £281.72

• 13/4/2020 I attempted to log into my account to pay the outstanding balance but received a message that the account had been deleted. I emailed  [COMPANY A] who replied stating that they had passed my account to Debt Collection Agency no.1.

• 24/4/2020 Text message received from Debt collection agency no.2 in regards to debt. I emailed [COMPANY A] immediately to ask if this was a legitimate text message due to the number of scams during the start of the Covid Pandemic. 

• I received an email from  [COMPANY A] on the 26/4/20 advising that the text message was not legitimate. I therefore took no further action. 

• 28/4/2020 Debt Collection Agency no.2 emailed me in regards to the debt, I therefore replied asking for clarification on the situation as [COMPANY A] had said the text message was not legitimate. 

• 30/4/2020 email received from Dept Collection Agency No.2 advising my account was on hold whilst they query my dispute with [COMPANY A]. Email advised that once they have a response from [COMPANY A] they will contact me.

• I did not hear anything else from Debt Collection Agency no.2 and with the pressures of the Covid outbreak, lockdown and working in the NHS, I admit I did not follow this up.

• October 2021 I was contacted by Debt Collection Agency no.3 in regards to the [COMPANY A] debt. I promptly arranged a payment plan with themselves.

• November 2021 I was contacted by Debt Agency no. 4 in regards to the [COMPANY A] debt. 

• Between 10/11/21 and 9/2/22 several emails were exchanged between myself, Debt collection agency no. 3 and no. 4 and [COMPANY A]  trying to identify who the debt belonged too and who I should pay. 

• Eventually it was resolved and I cleared the debt in full 8/2/22. [COMPANY A]  was also showing the debt on my credit file as well as Debt Collection Agency no.3. 

• I have all of the above emails saved for evidence. 

Thank you

eskbanker

What's the history of the debt prior to all that though, i.e. was it defaulted by the original company and if so, was this correct and undisputed?  How does it appear on your credit files?

SadNicola

Hello, I missed a payment to the original company who I owed the debt too and when I tried to log in to pay, the saga with debt collection agencies began. It shows as settled/closed on my credit report.Thank you

eskbanker

SadNicola said:

Hello, I missed a payment to the original company who I owed the debt too and when I tried to log in to pay, the saga with debt collection agencies began. It shows as settled/closed on my credit report.Thank you

Yes, but what's the chronology of that, i.e. when did you miss the payment, and when was the account defaulted?

SadNicola

Equifax shows default in March 2020 but then unclassified/recently opened account every month after this until Feb 22 where it shows settled.

Experian shows Default in April 2020 then unclassified/recently opened account until Nov 21, when it shows defaulted for that month, Dec 21 and Jan 22 and then in Feb 22 where is shows as settled.  

eskbanker

If the account was correctly defaulted in March/April 2020 then it'll show on your files for six years from then, regardless of the fact that it's settled, so any difficulties you experienced in doing so don't actually make any difference.

SadNicola

Is there nothing I can do in regards to this please? Company A did not send me any corres to advise that they were referring me to a debt collection agency and as soon as I realised I was in arrears, I attempted to pay the debt but it had already been passed to a debt agency. Also, this was during covid, which of course made things difficult. Thank you

eskbanker

Covid really isn't relevant but if you can convince the company that it was their fault that the account was in arrears (e.g. were repayments by direct debit and they failed to collect one month) then they might be prepared to amend the information on your credit files, but realistically the time to do that was four years ago, so at this stage all you can really do is just sit it out for another couple of years until the default drops off.

Thinkandgrow1

What lender are you trying to lend from? Are you using a broker? There are adverse lenders that will most likely accept you with this.