Moneybarn - Link Financial

Greenarrow72

Hi, looking for some advice. I had a car on finance with Moneybarn and they agreed to a Voluntary termination in August 2024. I was left with an outstanding amount of £1069 which they agreed I could pay off at £80 a month. I have paid this every month. At the beginning of May this year I received a letter from Moneybarn and Link Financial in the same envelope saying that the account had been sold to Link in April. It took them 4 weeks to notify me. My bank payment automatically changed to Link and they took a payment this month already on the same due date. I have checked my credit file and it has a default on it for this account and the default is dated August 2024. Surely this can't be right?
I am trying to build up my credit file and get a decent score but this now has a negative impact. I have complained to Moneybarn and contacted the Financial Ombudsman. I am waiting on a reply from Moneybarn. I have also raised a dispute with TransUnion. Should this default be removed?

Thanks.

Nasqueron

Ignore the fake score

Any default should be back dated to the point in August - you defaulted because you didn't pay the required amount at the required time i.e. when you VT you owed the money and you didn't pay it. A default is better than an arrangement to pay

Greenarrow72

Nasqueron said:

Ignore the fake score

Any default should be back dated to the point in August - you defaulted because you didn't pay the required amount at the required time i.e. when you VT you owed the money and you didn't pay it. A default is better than an arrangement to pay

Thanks for the explanation. Didn't think it would be a default because they agreed the VT and the payment schedule for outstanding amount. I'm just worried it will affect any future car finance application.

ManyWays

This may not be relevant for you but if it is, it may remove the default and indeed the balance owing. Was it hard to make the monthly payments to moneybarn from the beginning, if it was, look at an affordability complaint

Nasqueron

Greenarrow72 said:

Nasqueron said:

Ignore the fake score

Any default should be back dated to the point in August - you defaulted because you didn't pay the required amount at the required time i.e. when you VT you owed the money and you didn't pay it. A default is better than an arrangement to pay

Thanks for the explanation. Didn't think it would be a default because they agreed the VT and the payment schedule for outstanding amount. I'm just worried it will affect any future car finance application.

Basically you VT the car and owed X amount to complete the VT, you didn't pay it (as you had the payment plan) therefore you didn't meet your contractually agreement payment so it's a default. They should really have been clear on this + give you notice of potential default with a chance to pay, I cannot remember if they have to do it though or if a recommendation

Greenarrow72

ManyWays said:

This may not be relevant for you but if it is, it may remove the default and indeed the balance owing. Was it hard to make the monthly payments to moneybarn from the beginning, if it was, look at an affordability complaint

No I made the payments no problem. I just needed the car gone as I had another one and after a change of job I got a company car so needed the space for parking. 

Greenarrow72

Nasqueron said:

Greenarrow72 said:

Nasqueron said:

Ignore the fake score

Any default should be back dated to the point in August - you defaulted because you didn't pay the required amount at the required time i.e. when you VT you owed the money and you didn't pay it. A default is better than an arrangement to pay

Thanks for the explanation. Didn't think it would be a default because they agreed the VT and the payment schedule for outstanding amount. I'm just worried it will affect any future car finance application.

Basically you VT the car and owed X amount to complete the VT, you didn't pay it (as you had the payment plan) therefore you didn't meet your contractually agreement payment so it's a default. They should really have been clear on this + give you notice of potential default with a chance to pay, I cannot remember if they have to do it though or if a recommendation

They didn't mention any of that. They basically advised me that I could VT the car and pay the rest of over a 12 months no problem.

Greenarrow72

I also don't get why they sold it to Link Financial when payments were getting made every month as per agreement and there was only 5 payments to go.