Default - Partial or Full?

raarhhan

I had a loan with EGG a few years ago and got into trouble. They defaulted me after I had advised them I was having trouble.
I then with the help of family, offered them a reduced figure in full and final settlement to close the matter, which they accepted.
I sent the money and received a letter (July 2005) confirming

' I can confirm your full and final settlement figure has now been received onto your account, and your Egg Loan is now closed.

Your credit file will also be amended to show the debt as satisfied.'

However I checked my credit file in November 2007 to find there was an open loan and default! I wrote to Egg who replied with the following:

'I can confirm that I have amended your credit files to show as partially satisfied due to the short settlement of your Egg loan account. I can also advise that the default was registered correctly and will remain on your file for a period of six years.'

How can they get away with this when I have in writing (which I sent them a copy of) confirmation that they would show it as closed and satisfied?!!!

I have today emailed the Financial Ombudsman to try and ask for their help on the matter - but do you think I'll get anywhere? Are they entitled to do this even though they are going back on their agreement?

Please let me know where I stand legally. I am getting straight declines for a mortgage because of this!! : ( :huh:

Thanks

Puma21_2

Hi There,

They are allowed to do this unfortunately. The default means that you did not stick to your terms and conditions of your original credit agreement. A default is the companies way of letting the credit refference agency know that you did not stick to your agreement. The next step had you not paid it may of been to register a County Court Judgement (CCJ) against your name...that would of been worse!

As I'm sure you know, the default will stay on your file for 6 years, irrespective of if it is satisfied or not. I have been advised by my broker that mortgage companies tend to like to see three full years of no defaults/missed payments. It may be worth waiting until July and then look at someone like Kennsignton or First National Mortgages.

Hope this helps.

sassybooboos

this has happened to me also recently i decided to pay off the loan in full after defaulting late last year but they advised this will remain as default on my credit record for 6 years.

i wish i had just carried on paying the new agreement until the year never never when it would have been cleared.

i think it is unfair as i paid this off quicker than if i hadnt ever defaulted. (oh well at least i learnt a lesson)

CLAPTON

The letter from Egg seems very clear with little room for doubt.

I would do the following

a. write back to egg with a copy of their letter stating the case: say that if they won't agree then for them to give you a final decision letter so you can complain to the financial Ombudsman. (I know you already have but they usually insist you exhaust the complaints procedures first).
Also say you will compalin to the Data Protection people as the information on the Credit agencies is not in accordance with their written agreement.

obviously send by recorded delivery and keep a copy.

2. I would write to the credit agencies saying you dispute the entries and referring to a copy of egg letter.... they will contact egg ... no guarentee of any success but it will put more pressure on Egg.

then see what happens