Struggling with debt? Ask a debt adviser a question

StepChange_Kirsty · 6 April 2018 at 11:55AM

Hi there,

Thanks for your message and welcome to the forum.

When a default mark is entered on a credit file it will stay for six years from the date it was entered and will not be removed. As it has a zero balance, prospective creditors will already be able to see this account has been satisfied. The only way for a default to be removed is if it was entered in error. If you believe it was entered in error then you can complain directly to Virgin Media who can investigate this further. You can find their complaints process here.

Your other option here is to request the credit reference agencies enter a notice of correction. This is a statement of up to 200 words in which you could explain the cause of the debt and why your circumstances are now different or you could use it to explain why you think the information on the report is misleading. When a notice of correction is entered your mortgage application must be referred for a manual decision rather than a computer making the decision.

The entry of a notice of correction is always at the discretion of the credit reference agencies and you would need to contact all three to request this: Call Credit, Equifax and Experian.

I hope this helps and all the best.

Kirsty

Kieleyw wrote: »

I am looking for some advised as I feel like I'm banging my head against a wall !!!128546; and going round in circles.
My Partner has a default notice on his record from 2015 – it was paid in full in 2016 however does not show as paid, it is a zero balance on his credit report but still says 'defaulted' in the status. My Partner has contacted virgin media to ask them to remove it and to mark it as 'satisfied' but haven’t heard anything back from them. Is there anything I can do?
We are currently trying to get a mortgage ( which has been declined twice now due to this default notice) for our first family home and are worried that we will loose the house of our dreams if this can't be sorted.

Any help would be much appreciated

Oculus_Rex · 7 April 2018 at 2:08AM

Hi there.

I have recieved a notice of intent for court proceedings from Lowell Solicitors, which are a sister company for a DCA of the same name. This is regarding a debt I supposedly owe to EE.

A few years ago I had a contract with EE. However over the course of 6 months I had nothing but problems. I would go days without any signal at all (I lived next to a tower) I would have calls drop unexpectedly and repeatedly and I would have calls not go through at all. I used this phone for the computer business I operated at the time and I have almost a dozen confirmed lost clients because they couldn't get through to me.

I called EE dozens of times and in the end I pointed out that because I wasn't recieving the service I was paying for, as per the law, they were required to let me out of my contract without a cancellation fee. Despite the record of all the calls I made to them regarding these problems, they refused to accept that I was having issues and wouldn't let me out of my contract. Ultimately I told them to stuff the contract and moved to another provider. They of course told me that I owed the remaining amount on the contract and I told there where to shove it and the reasons why.

I refuse to acknowledge this debt and I'm hoping someone can give me advice on what to do next.

Many thanks.

Former_StepChange_Linsi · 7 April 2018 at 11:01AM

Hi

Thanks for your post.

It sounds as though you may have received a reply form which is part of the pre-action protocol for debt claims. This is something creditors send to try to come to an informal arrangement before taking further court action.

As you’re disputing this debt you’ll need to tick ‘Box D – I dispute this debt’ and explain why. If you can provide supporting documents or want to request further information from the creditor you can complete section four. The form then has to be signed and returned to the creditor within 30 days of the date at the top of the letter.

For more guidance about disputing a debt or help completing the form you may want to seek legal advice. Organisations such as the Law Centres Network may be able to help you find free legal advice in the area you live.

If you haven’t done so already, it would be worth making a complaint to EE. Their complaints process is available here on their website. You can also escalate the complaint to the Communications Ombudsman if EE are unable to resolve this complaint within eight weeks.

All the best,

Linsi

Oculus_Rex wrote: »

Hi there.

I have recieved a notice of intent for court proceedings from Lowell Solicitors, which are a sister company for a DCA of the same name. This is regarding a debt I supposedly owe to EE.

A few years ago I had a contract with EE. However over the course of 6 months I had nothing but problems. I would go days without any signal at all (I lived next to a tower) I would have calls drop unexpectedly and repeatedly and I would have calls not go through at all. I used this phone for the computer business I operated at the time and I have almost a dozen confirmed lost clients because they couldn't get through to me.

I called EE dozens of times and in the end I pointed out that because I wasn't recieving the service I was paying for, as per the law, they were required to let me out of my contract without a cancellation fee. Despite the record of all the calls I made to them regarding these problems, they refused to accept that I was having issues and wouldn't let me out of my contract. Ultimately I told them to stuff the contract and moved to another provider. They of course told me that I owed the remaining amount on the contract and I told there where to shove it and the reasons why.

I refuse to acknowledge this debt and I'm hoping someone can give me advice on what to do next.

Many thanks.

Oculus_Rex · 8 April 2018 at 2:00AM

Thank you for the prompt reply.

This all happened 3 years ago so I've got no supporting documentation or any records of the phone calls I made to EE at the time. I feel that this lack of evidence would be detrimental to my case should I dispute the debt. This rankles immensely because as I stated, they had a legal obligation to let me out of my contract.

StepChange_Kirsty · 9 April 2018 at 9:35AM

Hi there,

Thanks for your reply.

Whilst I can’t comment on the lawfulness of the contract, if the creditors decides to pursue further legal action I would recommend seeking legal advice as my colleague Linsi has stated above.

Before it gets to the next stage I would recommend you complain in writing to EE in order for them to investigate this matter further for you. Their complaints process is available here.

Thanks

Kirsty

Oculus_Rex wrote: »

Thank you for the prompt reply.

This all happened 3 years ago so I've got no supporting documentation or any records of the phone calls I made to EE at the time. I feel that this lack of evidence would be detrimental to my case should I dispute the debt. This rankles immensely because as I stated, they had a legal obligation to let me out of my contract.

steve.trigger · 9 April 2018 at 11:48AM

Help and advice required

History – Many years ago ( Oct 1998) I was in severe financial difficulties and used a company called Sterling Financial Services (I have not found any evidence that the company still exists) to deal with my debts and they did what they said and negotiated my debts down so they could be settled etc, no complaints with them I might add. Fast forward to 2005 and I still had a debt with the Halifax and Associates Capital and I finally managed to pay off the remaining two debts to Thames Credit Limited (I assume they must have bought both the debts) of £1200 and £1725 with a loan and I have the original letter stating they accepted the settlement figures and I paid by cheque for both and have the cheque numbers, bank statement showing payment and cashing of the cheques which Cabot Financial.
Now fast forward to Nov 2009 I received a letter from Mackenzie hall stating they attempted to contact me ref the Halifax debt followed in Jan 2010 by another letter from them saying they are working on behalf of Aktiv Kapital followed again by another letter in June 2010. I believe they got my address by electoral roll amendments. Fast forward again to March 2014 when I moved house and I must have popped up on the radar again and now received letters direct from Aktiv Kaptital, 6 different ones in total up till July 2014, all offering huge discounts if I settle etc. Finally in Jan 2015 I received a letter from PRA Group in the form of a statement showing I had an opening balance of £4279, then in March 2016 £1838 as they adjusted the balance and an offer of £183.81, same again in March 2017 and finally this March 2018 with a settlement of £643.33!!!!
I have not contacted any of the above firms or replied in any form since I settled the debt it 2005. I would believe that the limitation act 1980 section 5 would now apply as its been over 6 years with no contact or acknowledgment Additionally I have settled this debt and as far as I am concerned it is now paid in full and that’s it and these companies are just hoping to screw some more money out of me.
My real concern is if I died would these vultures go after the money via my children/partner etc and try to get the money from them? I don’t particularly want to contact the companies as I don’t see why I should so advice please as to what I should do next…. Option 1 – leave it as is… Option 2 – Write to PRA Group telling them debt has been paid etc… Option 3 – seek professional help such as financial conduct authority…

Sorry for the long winded explanation but you needed all the facts…. What advice can anyone offer me as to what to do next?

StepChange_Kirsty · 9 April 2018 at 4:02PM

Hi Steve,

Thanks for your post and welcome to the forum. I appreciate all the details you’ve given here.

As you’ve not paid or admitted the debt since 2005, if the creditor was to take legal action against you, you should have an absolute defence as it’s subject to the Limitations Act 1980. When a debt becomes “statute barred” it is not written off but the creditor loses the right to pursue the matter through the court.

The problem here is that the balance should have been written off when you agreed a full and final settlement. You could try writing them to confirm the agreement however you would need to be careful not to re-start the limitations period by admitting to the debt.

You may be better to follow the Limitations Act route by confirming to the creditor that you believe the debt to be statute barred. There is some useful information here on our website about how to deal with statute barred debt including template letters.

When you pass away, debts do not automatically pass to spouses or children unless they joint signed the agreement with you or acted as a guarantor. If you own any assets the creditor could potentially apply for repayment through probate. Whether or not a Judge would agree that the debt is payable from your assets in a probate situation is another question which I wouldn’t want to second guess. As a result if you’re still concerned about this I would recommend seeking legal advice.

Of course you can also contact the Financial Ombudsman Service for guidance if you’re looking to make a complaint to the creditor.

All the best,

Kirsty

steve.trigger wrote: »

Help and advice required

History – Many years ago ( Oct 1998) I was in severe financial difficulties and used a company called Sterling Financial Services (I have not found any evidence that the company still exists) to deal with my debts and they did what they said and negotiated my debts down so they could be settled etc, no complaints with them I might add. Fast forward to 2005 and I still had a debt with the Halifax and Associates Capital and I finally managed to pay off the remaining two debts to Thames Credit Limited (I assume they must have bought both the debts) of £1200 and £1725 with a loan and I have the original letter stating they accepted the settlement figures and I paid by cheque for both and have the cheque numbers, bank statement showing payment and cashing of the cheques which Cabot Financial.
Now fast forward to Nov 2009 I received a letter from Mackenzie hall stating they attempted to contact me ref the Halifax debt followed in Jan 2010 by another letter from them saying they are working on behalf of Aktiv Kapital followed again by another letter in June 2010. I believe they got my address by electoral roll amendments. Fast forward again to March 2014 when I moved house and I must have popped up on the radar again and now received letters direct from Aktiv Kaptital, 6 different ones in total up till July 2014, all offering huge discounts if I settle etc. Finally in Jan 2015 I received a letter from PRA Group in the form of a statement showing I had an opening balance of £4279, then in March 2016 £1838 as they adjusted the balance and an offer of £183.81, same again in March 2017 and finally this March 2018 with a settlement of £643.33!!!!
I have not contacted any of the above firms or replied in any form since I settled the debt it 2005. I would believe that the limitation act 1980 section 5 would now apply as its been over 6 years with no contact or acknowledgment Additionally I have settled this debt and as far as I am concerned it is now paid in full and that’s it and these companies are just hoping to screw some more money out of me.
My real concern is if I died would these vultures go after the money via my children/partner etc and try to get the money from them? I don’t particularly want to contact the companies as I don’t see why I should so advice please as to what I should do next…. Option 1 – leave it as is… Option 2 – Write to PRA Group telling them debt has been paid etc… Option 3 – seek professional help such as financial conduct authority…

Sorry for the long winded explanation but you needed all the facts…. What advice can anyone offer me as to what to do next?

Abby87 · 11 April 2018 at 1:29PM

I wondered if someone wouldn't mind offering me some advice. I seem to be going into my Overdraft each month by quite a bit, this month (bearing in mind it is only 11th) I am £1000 into my overdraft. I am a part time worker and my salary (£600 a month) goes on the household bills and nursery costs. My husband earns a fair wage, however, he pays for the Mortgage and whatever he has remaining is used as our savings as I have none.

I have always reduced bill costs at the end of contracts to ensure we save money that way, and recently cancelled Sky, to save us £30 a month. I don't really know how to get out of the overdraft as I pay every day I am in it. I was looking at getting a different bank account with a % overdraft but understand there is a pay in limit which I cannot reach. I also use my credit card to pay for any outgoings other than direct debit bills.

To top it all off, I am 24 weeks pregnant and as of July will be on Maternity Leave with a reduced salary or Statutory Maternity Pay.

Any assistance or advice would be much appreciated, even if it is just to tie me over for the next few months to clear the overdraft.

Thanks in advance.

Former_StepChange_Linsi · 12 April 2018 at 9:54AM

Hi Abby

Thanks for posting and congratulations on your pregnancy.

I’m sorry to hear you’re struggling to clear your overdraft and you need to use your credit card to cover some of your living costs.

It definitely sounds like you’d benefit from getting some debt advice and this is something we offer. As a debt advice charity the advice and support we provide is free, impartial and confidential.

You can create a budget and get tailored advice about managing your overdraft and debts by using our online Debt Remedy tool. Here’s the link.

There’s also a really useful article about bank accounts on our website, which you may want to look at.

I hope this helps,

Linsi

Abby87 wrote: »

I wondered if someone wouldn't mind offering me some advice. I seem to be going into my Overdraft each month by quite a bit, this month (bearing in mind it is only 11th) I am £1000 into my overdraft. I am a part time worker and my salary (£600 a month) goes on the household bills and nursery costs. My husband earns a fair wage, however, he pays for the Mortgage and whatever he has remaining is used as our savings as I have none.

I have always reduced bill costs at the end of contracts to ensure we save money that way, and recently cancelled Sky, to save us £30 a month. I don't really know how to get out of the overdraft as I pay every day I am in it. I was looking at getting a different bank account with a % overdraft but understand there is a pay in limit which I cannot reach. I also use my credit card to pay for any outgoings other than direct debit bills.

To top it all off, I am 24 weeks pregnant and as of July will be on Maternity Leave with a reduced salary or Statutory Maternity Pay.

Any assistance or advice would be much appreciated, even if it is just to tie me over for the next few months to clear the overdraft.

Thanks in advance.

Redrosies · 12 April 2018 at 10:19AM

Myself and my husband have lived above our means for the last few years and have now hit bottom.

We have;

£30,320 - credit cards (822pm)
£20,000 - loan (436pm)

Our income has just lowered to £3200pm combined and with bills, Morgage and debt our out goings is £3000pm. We’ve sadly been using cc to get by but now we can’t use them and to be honest don’t want to live the way we have anymore.

We have two young children and parents with ill Health who can not know about our situation so bankruptcy (anything that makes us lose our home is a no no)

My husband works every bit of overtime possible and I’m just going back after maternity leave so will be picking up anything that I can. We have two cars which we both require for work.

My main questions are;

1. Could we ask our credit card companies if they could help us either by lowering monthly payments or freezing our interest? (Would this effect our rating much?

2. Our loan is with Sainsbury’s and has 2.5 years left. Could we ask them for lower payments or would this be not wise?

3. Any other suggestions greatly welcomed

Struggling with debt? Ask a debt adviser a question

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