Paying off debt but credit file not improving

Andydiscovery

Hi everyone,

I got a free credit report from experian and have one entry on there for a debt I had with TSB that Aktiv Kapital had 'bought'

I have been paying the debt off at the amount arranged with AK on time for nearly a year now but the status of the credit agreement still shows as [8] in red, I have spoken to AK and they say that as the agreement was originally with TSB has defaulted the status is correct, my arguement is that the credit agreement is with them and as I have been paying it on time, every time that the agreement should be showing up as upto date.

If I'm right then how do I go about getting AK to update the status, I spoke to a number of staff members at AK including supervisors and they won't budge.

I have a Vanquis credit card to repair my credit and have been paying that off on time, I owe £901 in total and this is all owed to AK so any suggestions that will get my credit file looking better would be much appreciated.

Should I just take what AK say as true and accept that it won't be sorted until October or is there a way that I can 'have my cake and eat it' but owing AK money, but have a healthy looking credit score????

fermi

I'm afraid in this case that AK are right.

If you failed to keep to the terms of the original agreement with Lloyds TSB then they were entitled to default the account and the status shown is correct.

The original agreement has now ended, and your payment arrangements with AK are not relevant. However, when the debt has been paid off the default should be marked as satisfied.

But the default will still remain on your files for 6 years from the date of it's initial registration. While it's there it will have a detrimental effect of your credit rating/score.

Cleosmum

I would get TSB to send through a true copy of the original default notice, the default notice has to conform to a certain format and if it does not the default notice wont be valid, hence your default wont be valid and would have to be removed from your file.

If you have defaulted with TSB the original credit agreement is no longer valid and nor the terms or conditions associated with it. Those original terms and conditions gave them consent to process your data. However as its no longer valid they no longer have your consent. You really need to do a CCA request to see if they had your consent in the first place, if the CCA is not valid then they would need to remove all data that they have entered on you.

If the CCA is valid, it is now defaulted, hence they can no longer process your data. In both of these cases you would need to send a section 10 request to stop them from processing your data, if they refuse you can take them to court.

Cleosmums OH

fermi

Cleosmum wrote: »

I would get TSB to send through a true copy of the original default notice, the default notice has to conform to a certain format and if it does not the default notice wont be valid, hence your default wont be valid and would have to be removed from your file.

Correct.

Cleosmum wrote: »

If you have defaulted with TSB the original credit agreement is no longer valid and nor the terms or conditions associated with it. Those original terms and conditions gave them consent to process your data. However as its no longer valid they no longer have your consent.

No. You misunderstand. The agreement ending does not withdraw their permission to process the data or maintain the record of the default.

Cleosmum wrote: »

You really need to do a CCA request to see if they had your consent in the first place, if the CCA is not valid then they would need to remove all data that they have entered on you.

Should be true, and some have successfully done this. However, it can be a hell of a fight, and even the Information Commissioners Office does not not uphold all complaints on this principle.

But perhaps worth a shot at least.

EDIT: There is some useful guidance from the Information Commissioner here: Technical Guidance Note - Filing defaults with credit reference agencies

Andydiscovery

Thanks for all your prompt replies.... Interesting stuff.

The date AK have for getting the debt from TSB is back in 1997, given that a default stays on 6 years would this mean that once AK are paid that this default will be gone?? It's probably wishful thinking on my behalf

I have 8 more payments left to get this debt cleared, I am very tempted to double the repayments by calling them once a month and putting the additional payment on the credit card but pay off the credit card immediately, that may sound daft but I only got the credit card to gain some good marks on my credit file and I 'think' that paying off the card (and AK twice as fast as the agreement) can only be a good thing.

As an aside to the original post I have noticed a couple of things since getting the credit card:

1: lots of loan offers - usually with hideous interest rates

2: A couple of letters from credit companies telling me I owe them money (which I don't) I have looked into the demand letters and they are from companies that have bought up old debts (one company admitted this to me on the phone!)

Once again, many, many thanks for your replies, what a great forum/community!

fermi

What is the original date of the default?

Andydiscovery

AK have it down as 1997 but I think that is the date I opened the bank account, I got into trouble with it on 2000/2001.

fermi

What date to Experian have for the default on the report?

It should be listed in a similar fashion to this?



And when is it possible to day that you had trouble paying Llyoyds TSB for the original account for more the 3 months in a row.

Trying to work out if AK have been fair regarding the default date here. And that determines when it comes off your file.

Andydiscovery

After re-reading the credit file it appears the "defaulted on" date is 16/08/2002.

So, from what I've learned on MSE, once I've paid it off it should be off my file, does that sound about right?

fermi

A default stays on your file for six years from the the default date, so it should be removed in August this year.

It will stay on there until then, and will be removed then whatever you do with the payments to AK.

Andydiscovery

Thanks Fermi, I'll look to that date!!!!

Once again, many thanks for all your help.. !