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  • FIRST POST
    • 22Jens21
    • By 22Jens21 13th Mar 18, 12:43 PM
    • 14Posts
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    22Jens21
    Default an account not on credit file
    • #1
    • 13th Mar 18, 12:43 PM
    Default an account not on credit file 13th Mar 18 at 12:43 PM
    I need the steady hand of a credit file ninja on this...

    Once a loan account falls off your credit file, can it be reinstated by the lender in order to register it as a default?

    I have a loan with Lloyds that's so old, the account fell off my credit file some time ago (I've checked ClearScore, Noddle and MSE Club - it's not on any of them).

    The history of it is that I got into difficulties with an original loan many years ago, and the whole thing was renegotiated and new terms agreed - lower payments and zero interest.
    At times they also agreed to payment holidays and minimal repayments. However, they didn't alter the renegotiated terms, so although I've been paying steadily for years, the loan is now several years past maturity and still has an outstanding balance.

    Lloyds have now written letters entitled ‘default loan’ saying that because the loan is past maturity I must up the repayments or face action. I offered to make additional ad hoc payments when I can.
    In response, they’ve sent a ‘Letter of concern’ again entitled ‘default loan’. They seem to be saying that unless I seriously up the payments, they will take action.

    I'm happy to up the payments as much as I can, have every intention of paying this debt in full, and have said so. They can see my record of years of payments, and that I communicate with them, so they have no reason to believe I'm going to stop repayment.

    So is it technically possible for them to re-register the account on my credit file so they can register it as a default?

    Any insight gratefully received ~ thank you.
Page 1
    • sammyjammy
    • By sammyjammy 13th Mar 18, 12:48 PM
    • 4,304 Posts
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    sammyjammy
    • #2
    • 13th Mar 18, 12:48 PM
    • #2
    • 13th Mar 18, 12:48 PM
    Was it defaulted previously? When an account is defaulted it is closed, this means six years from that date it drops from visibility on your credit file. They cannot relist it as I understand it.

    Hopefully someone else will come along that can confirm or deny what I have said.
    "You've been reading SOS when it's just your clock reading 5:05 "
    • 22Jens21
    • By 22Jens21 13th Mar 18, 12:50 PM
    • 14 Posts
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    22Jens21
    • #3
    • 13th Mar 18, 12:50 PM
    • #3
    • 13th Mar 18, 12:50 PM
    Nope, it's never been defaulted.
    Nor sold on.
    • zx81
    • By zx81 13th Mar 18, 12:53 PM
    • 16,827 Posts
    • 17,825 Thanks
    zx81
    • #4
    • 13th Mar 18, 12:53 PM
    • #4
    • 13th Mar 18, 12:53 PM
    If the account is still live and is not statue barred nor defaulted, then yes, they can report it to your credit files.
    • 22Jens21
    • By 22Jens21 13th Mar 18, 1:01 PM
    • 14 Posts
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    22Jens21
    • #5
    • 13th Mar 18, 1:01 PM
    • #5
    • 13th Mar 18, 1:01 PM
    Wow. OK. I thought I would be 'safe' as once it had fallen off, then it was gone for good.
    If it can be re-listed it can then be defaulted. I'd argue a default as I don't believe I meet the criteria, but they still clearly hold the advantage.
    I'll make every possible effort to up the payments to the point they're happy.
    Thank you zx81 - that's extremely valuable knowledge.
    • zx81
    • By zx81 13th Mar 18, 1:06 PM
    • 16,827 Posts
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    zx81
    • #6
    • 13th Mar 18, 1:06 PM
    • #6
    • 13th Mar 18, 1:06 PM
    An alternative approach would be to argue it should have been defaulted some time back and ask them to apply that at the appropriate date, so that it falls off more quickly.

    But I would only use that if and when they reappear.
    • 22Jens21
    • By 22Jens21 13th Mar 18, 1:09 PM
    • 14 Posts
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    22Jens21
    • #7
    • 13th Mar 18, 1:09 PM
    • #7
    • 13th Mar 18, 1:09 PM
    To retro-actively apply a default? Hmmm...
    To give you an idea of timescales, the original loan was early 2000's.
    The renegotiation was in 2005 for a 10 year term. Obviously due to payment holidays and some minimal payments, the 10 year term passed three years ago and there's still a way to go.
    But payments have been steady and consistent for over three years and they've just woken up and started shouting about defaults and sending a 'letter of concern' now.
    How would you handle it?
    • ramblehan
    • By ramblehan 13th Mar 18, 1:14 PM
    • 592 Posts
    • 1,218 Thanks
    ramblehan
    • #8
    • 13th Mar 18, 1:14 PM
    • #8
    • 13th Mar 18, 1:14 PM
    Might be worth posting this on the DebtfreeWannabe boards (especially within the DMP sticky thread) as there are definitely some experts there who can navigate this for you. You can ask for a default to be retr0-dated and some people get this. The other thing that might be worth doing is a CCA request which asks them to prove the debt is enforceable (they have to provide a certain level of paperwork) if they can't do this, then they can't enforce it, and essentially they just have to give up on it.
    I am far from being an expert but just what little I have gleaned along the way. Good luck
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    • 22Jens21
    • By 22Jens21 13th Mar 18, 1:23 PM
    • 14 Posts
    • 0 Thanks
    22Jens21
    • #9
    • 13th Mar 18, 1:23 PM
    • #9
    • 13th Mar 18, 1:23 PM
    Thank you very much for the suggestions ramblehan - much appreciated.
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