Severn Trent and Credit reference agency

Clare237

Good afternoon everyone,

I have a question that I can’t find a clear answer for. 

I had an account with Severn Trent 2016-2018. 

I didn’t realise there was an outstanding balance when I moved. 

Due to some personal circumstances this  was still outstanding however I am confused at how it is reported with the credit reference agency.  The original account was closed and does not appear on my credit file, but they added another account and have placed ‘6’ each month since 2019 - looking like it is a new account and a new debt.  The account number is also different to the old one (last 4 digits are shown)

I have an email from them this week saying they had the ‘account closed July 2018’ so why is this being reported as an account opened after the original one closed?

For context, it is a very small amount of money. 

Any advice on next steps?   It feels wrong that a defaulted account is then swapped to a new one as if the old one didn’t exist. 

Brie

Send them a prove-it letter.  By post. 

Mention as well that if there was a debt it is now statute barred and should not be on your credit file.  Say "if" as that is not admitting a debt, just enquiring about it and won't therefore reset the clock on barring it.

Brie

Debt-Free Wannabe Sticky - Provit & Statute Barred Letters, Defaults, Help and Guidance, All Here... — MoneySavingExpert Forum

Clare237

Brie said:

Send them a prove-it letter.  By post. 

Mention as well that if there was a debt it is now statute barred and should not be on your credit file.  Say "if" as that is not admitting a debt, just enquiring about it and won't therefore reset the clock on barring it.

Thank you Brie.  

The information I have is that i have paid nothing since July 2018 (so over 6 years, 72 months) - my credit file has status of 6 since then as they say 6 months over due before I left the property, I am unsure about this as thought was up to date.   

I queried why this account was never placed in default, they say this would have been optional not requirement,  

I haven’t admitted the debt, so will take you other advice also. 

If they would place a default on the account for July 2018 it wouldn’t appear anyway so feel frustrated!

HillStreetBlues

They can't rewrite history. It shouldn't be showing on on your current credit file.

Clare237

I agree, they can’t rewrite history.  For 12 months in the middle they also sent the account for debt collection - but they still didn’t default the account   They also continued to place 6 on my status for this time also, along with writing to me at a previous address.  

Is it true that a utility company can refuse to default the account under all circumstances?  I thought (possibly incorrectly) that a default should be applied at 3-6 months of none payment?  Or is this up to the company?

Brie

Different companies do things in different time scales.  But this is 6+ years so well defaulted by now.  

The problem is likely the different account number - where did they get that from??

Clare237

Brie said:

Different companies do things in different time scales.  But this is 6+ years so well defaulted by now.  

The problem is likely the different account number - where did they get that from??

i have no idea why the account number a different last 4 digits on my credit file - it makes no sense.  

They are saying no payments were made January 2018.  The account was closed as I left the property in the July of this year.  Sent to debt collection October 2018.   My file just has ‘6’for all the payments I can go back.  

I need to make sure that no contact has been made since re. Statute barred. 

However, even if it isn’t, surely it is long defaulted and shouldn’t be on my file anyway?  Not sure about the rules - I would say default should have happened latest Oct 2018 when they and to debt collection. 

Clare237

I had an update from Severn Trent and I am so frustrated!

the balance was cleared by them due to the time it was outstanding.  

The court team have said that the account was closed on 10th July 2018.  With this information, this account should not appear on my current file in the way it is reported.  

The response from customer service is;

Unfortunately, we are unable to retrospectively adjust the credit reporting on this occasion.

 

Severn Trent Water issue a monthly 'snapshot' of our accounts noting the status of the balance outstanding and if any agreed payment plans are active on the account or not and report this information to the credit reference agencies accordingly.

 

The CRAs then use this basic information by assigning it to your credit file and determining your overall credit score impact.

 

Our reporting of ‘6’ relates to the age of the arrears outstanding and is noted as ‘6 months or more’ an insight default was not deemed to be required during the reporting on this account to date but the balance is likely to have been deemed in default by the credit reference agencies themselves for some time based on the basic monthly updates we have provided them.

 

Severn Trent Water have to report in-line with CRA guidelines and are only permitted to make amendments to what has been reported if there has been an error made by us and as I was unable to find any error, I have been unable to make any amendments.

With this; the account will remain on my credit file with the 6 status for the next 6 years (until 2030!).  

Would appreciate advice as I am sure it is there responsibility to report the default?!

Brie

Well other than shouting "booolux" at them perhaps you can point out that:

I have been told specifically "The court team have said that the account was closed on 10th July 2018.  With this information, this account should not appear on your current file in the way it is reported."  So there is an error that you need to correct.  Please tell me how long you expect this to take and when you have issued the correction.

Tell them that you expect it to take less than a month and that this should be obvious on your credit report soon after.   Tell them also that if it isn't you will be forwarding your complaint to the regulator.

If that doesn't work then escalate it to the regulator.

Clare237

Update;   I have complained to the regulator.  The account shows as closed September 2024 to be reported until September 2030.  6 status for the last 72 months.  They have refused to make any amendments saying applying a default is at their discretion - even when there was a CCJ present.   It is marked as delinquent but unsure what that means. 

I really hoped to buy a home next year - and have worked so hard to get to this point.  But know now, realistically this will scupper my chances, totally gutted.