Default on credit record for someone else's loan

azmodan
azmodan Posts: 12 Forumite
Good day. I'm looking for a little advice regarding an outstanding loan issue.

Last week I received a letter from Debt Management, part of the DWP informing me that I was to make a payment of almost £500 by 22/12. This came as quite a surprise to me, as I had neither applied for nor received any credit of any kind in over 10 years. Upon contacting the agency on the number given, I eventually found that this was for a loan with the company Moneyline that was paid out on 13th September 2016. Debt Management were unable to give me any further details over the phone and advised me to speak with the lender.

Today I was able to make a trip down to their local branch and make enquiries before my work shift was due to start. According to them, a loan was applied for on the aforementioned date, but by someone else using a benefits letter from their local job centre with my national insurance number. When they failed to pay back the loan, my NI was forwarded onto Debt Management, who then linked it to me and began collection procedures.

They say that 3 letters were sent to my employment agency (I have a long term placement with the civil service) but the agency say they have not received anything relating to this. The final notice letter sent to my home address was the first clear indication there was a problem.

I have also noticed my credit rating dropping over the last few months, but as I do not have a paid account I couldn't see any details as to why and had assumed it was to do with a lack of credit agreements. Currently I only have a mobile phone bill every month which is paid by direct debit. I have never missed a payment.

I have tried to speak with the job centre today over the phone, but was unable to get through the queue after over 90 minutes, by which time they had closed. I intend to go into my local branch tomorrow after booking time off work to try and get this resolved.

Would anyone be able to advise me what my rights are here, and if there are any other avenues I should be pursuing? Any assistance would be greatly appreciated.
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Comments

  • [Deleted User]
    [Deleted User] Posts: 35,242
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    Send them a letter or email disputing it.

    Do the same with whichever CRAs it appears on.
  • Ergates
    Ergates Posts: 2,108
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    When you write to the lender include a formal letter of complaint about how much hassle their incompetence has caused you.
  • azmodan
    azmodan Posts: 12 Forumite
    Thank you. I'll post a further update once I have a clearer picture of how this happened in the first place. Hopefully the job centre will be able to offer an explanation for their part, however comical it may end up being.
  • azmodan
    azmodan Posts: 12 Forumite
    I've now visited my local job centre branch. Initially they tried to tell me it was nothing to do with them, at which point I presented the letter and assured them that it was. A 20 minute wait later, they were still adamant that they couldn't help, so I spoke with a supervisor.

    He told me that they were unsure of what to do, and that as I couldn't produce any evidence they were at fault I would need to speak with the loan company. He also told me they have no records from 2016, so would be unable to find the original benefit letter. I myself work for the civil service, and am well aware of finance laws requiring any records be kept for a minimum 7 years.

    He assured me they would look into things on my behalf anyway, and that I would receive a call in a couple of hours.

    At 1630 I called him on the number he had provided as I'd heard nothing. He said "we've been working on this all day, we've called the company 3 times and finally spoke to someone. You need to send a letter to the company asking them to release your loan details".

    This is absurd, and I told him as much. I have no account with this company, all they have is an NI number, which on their system, links to a completely different person. So any request I make will bounce back immediately. I also asked him to send me any instructions regarding this in writing. He point blank refused.

    I have now resolved to take the matter to my local mp and will be making the complaint in writing tomorrow.
  • Nasqueron
    Nasqueron Posts: 8,631
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    Data Protection laws say to keep records as long as necessary, not a minimum of 7 years. Finance firms have a general guideline of 6 but they don't have to and some keep it far longer. Given data protection laws, even if your NI was on the letter, the letter was issued to another person so you couldn't have access to it anyway.


    Just complain formally and dispute the debt
  • fwor
    fwor Posts: 6,806
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    Maybe I don't quite understand your point, but it seems you're concentrating on the wrong thing. A NI number is trivial to make up. I can't see why you seem so sure that the number was given to someone by the Job Centre, rather than someone just guessing your number at random and editing it into a fake benefits letter.

    I think you need to focus on disputing the loan rather than trying to find out how your NI was obtained (or guessed).
  • boo_star
    boo_star Posts: 3,202
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    fwor wrote: »
    Maybe I don't quite understand your point, but it seems you're concentrating on the wrong thing. Your NI number is just that - a number. I can't see why you seem so sure that the number was given to someone by the Job Centre, rather than someone just guessing your number at random and editing it into a fake benefits letter.

    I think you need to focus on disputing the loan rather than trying to find out how your NI was obtained (or guessed).

    Me either.

    None of this makes any sense.

    Why are the DWP sending out letters on behalf of a payday loan company?

    How did the payday loan company get your personal information from a NINO?
  • -taff
    -taff Posts: 14,423
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    You dispute the loan witht he debt management company, you provide proof of identity, they will stop badgering you.
    Shampoo? No thanks, I'll have real poo...
  • azmodan
    azmodan Posts: 12 Forumite
    When the debt was defaulted on, the loan company used the NI on file to pass the debt to Debt Management. They in turn matched the NI to my stored details and things went from there. I still have no idea where the first 3 letters they sent ended up, but they're adamant what I received was number 4.

    I'll follow the advice here. I've been pretty hot headed about the whole incident and haven't paid enough attention to what you folks have been saying - kinda defeats the point in posting in the first place, and I apologise for that.

    The debt is in dispute for the time being, so I've got the time I need to get this sorted out with paper trails.
  • boo_star
    boo_star Posts: 3,202
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    azmodan wrote: »
    When the debt was defaulted on, the loan company used the NI on file to pass the debt to Debt Management. They in turn matched the NI to my stored details and things went from there. I still have no idea where the first 3 letters they sent ended up, but they're adamant what I received was number 4.

    I'll follow the advice here. I've been pretty hot headed about the whole incident and haven't paid enough attention to what you folks have been saying - kinda defeats the point in posting in the first place, and I apologise for that.

    The debt is in dispute for the time being, so I've got the time I need to get this sorted out with paper trails.

    Who are "Debt Management"?

    It can't be part of the DWP as they won't give two hoots about your alleged payday loan debts. It really doesn't add up.
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