Please help clarify default/account issue?

[kevlo]

Hi guys and girls, My fiance and I are trying to clear up our credit histories with a view to remortgaging in 2-3 years. We have 5 defaults between us which will come off by then so we are very keen to keep our noses clean in the mean time.

 

However i have recently received a letter from blockbusters stating that i owe them £48 due to a movie (toy story 2 dvd) being unreturned. I have never rented this movie and dont have kids so i believe its been put on my account by mistake. (I havent used my card in about 12 months but i still have it so it hasnt been stolen).

 

They have sent me letters about it but i have thrown them away thinking they were junkmail as i havent used them in so long. I have opened the recent ones as they are red and from a DCA. I have contacted them by phone and told them that i am not acknowledging the debt and have never rented that DVD. They said that they will take me to court over it.

 

Would a blockbuster account be classed as a credit account? could they make an entry on my credit file over this? i really dont want to pay them £48, i know its not a massive amount but its money i dont owe. If they have the power to put a mark on my credit history however i will pay the £48 just to be safe.

 

Please help!

[car2403]

Not sure why you're talking about paying it if you don't owe it? Surely if they take you to Court they can't show that you owe it when you don't?

 

I wouldn't be talking to them by phone, I'd be writing to them (Blockbuster, not the DCA) stating what you've said on the phone and denying that you owe the money. If they have proof you owe it, they should provide it to you and stop threats of Court action. you'll need to say you'll vigourously defend any Court claim on the basis of your letter and will consider any further contact from them as harassment. If you look in the library, there is a harassment template you can adapt to suit.

 

As for your credit file, it's probably not recorded on there. There isn't any "credit" so to speak of, but you need to take steps to avoid getting a CCJ by ignoring the situation (and binning letters that you might need at a later date) and hoping they won't have a 'go' at it.

 

I don't think there's anything to worry about, really.

 

Oh, what about the other Defaults, as there's nothing stopping those creditors renewing them if there is still an outstanding balance on the accounts?

[Deb T]

Oh, what about the other Defaults, as there's nothing stopping those creditors renewing them if there is still an outstanding balance on the accounts?

 

Can you clarify the above comment? As far as I was aware a default entry is registered for 6 years from the date it was first entered and cannot be renewed/extended

regardless of the balance outstanding at the point it drops off the file? Only way it can be extended is by the creditor moving to take court action and

obtain a ccj for the same defaulted debt in which case the ccj will last 6 years from it's date of entry etc.

Edited January 8, 2011 by Deb T
missed out 'extended'

[car2403]

Can you clarify the above comment? As far as I was aware a default entry is registered for 6 years from the date it was first entered and cannot be renewed/extended

regardless of the balance outstanding at the point it drops off the file? Only way it can be extended is by the creditor moving to take court action and

obtain a ccj for the same defaulted debt in which case the ccj will last 6 years from it's date of entry etc.

 

Well, yes, but what I said was "there's nothing to stop them" in which case you'd need to take action to prevent it happening. I think the OP needs to clarify his situation further (hence the question) as this may be off topic, though. : )

[kevlo]

what about the other Defaults, as there's nothing stopping those creditors renewing them if there is still an outstanding balance on the accounts?

 

im going to raise another thread on this issue as i need some clarification exactly what they can and cant do. i will post the link in this thread.

 

i will go through the first reply and quote reply now if thats ok

[kevlo]

Not sure why you're talking about paying it if you don't owe it? Surely if they take you to Court they can't show that you owe it when you don't?

 

i am just worried that it will affect my credit rating and thus stop me from getting the house/mortgage i want. I see it as abit of a grey area because its not like a credit agreement where you take goods and have to sign a contract. With blockbuster you sign to open the account (which i did approx 8 years ago) and then you just take dvds as and when paying cash to do it. Therefore i feel like it could be seen as a credit account but how can they prove it was me that took the DVD because you dont sign to take them out.

 

 

I wouldn't be talking to them by phone, I'd be writing to them (Blockbuster, not the DCA) stating what you've said on the phone and denying that you owe the money. If they have proof you owe it, they should provide it to you and stop threats of Court action. you'll need to say you'll vigourously defend any Court claim on the basis of your letter and will consider any further contact from them as harassment. If you look in the library, there is a harassment template you can adapt to suit.

 

I will contact them by letter but i wanted to check her first whether they can actually affect my credit rating. That is all that matters to me. I dont see why i should spend my time explaining to them why i dont owe them money. But this will be time well spent if it stops me getting a mark on my credit history. If they cant then i wont waste my time.

As for your credit file, it's probably not recorded on there. There isn't any "credit" so to speak of, but you need to take steps to avoid getting a CCJ by ignoring the situation (and binning letters that you might need at a later date) and hoping they won't have a 'go' at it.

 

I have checked my credit file and its definately not showing on there yet as of last night. The only things on my credit file are long term contracts such as overdraft, mobile phone, mortgage, hire purchase agreement etc. None of these are anything similar to a blockbuster account so i thought it may not be able to affect it.

[car2403]

im going to raise another thread on this issue as i need some clarification exactly what they can and cant do. i will post the link in this thread.

 

i will go through the first reply and quote reply now if thats ok

 

Well, it's not really about what they can do - it's about what they should do. They should NOT be defaulting you incorrectly. but we know that they do. IMHO, it's best off not worrying about what they will or won't do and deal with it when they do : )

 

i am just worried that it will affect my credit rating and thus stop me from getting the house/mortgage i want. I see it as abit of a grey area because its not like a credit agreement where you take goods and have to sign a contract. With blockbuster you sign to open the account (which i did approx 8 years ago) and then you just take dvds as and when paying cash to do it. Therefore i feel like it could be seen as a credit account but how can they prove it was me that took the DVD because you dont sign to take them out.

 

I think we need to get away from the 'it's not a credit agreement' argument, as there are lots of things recorded on your credit file that aren't credit agreements. Looking at it from their perspective, you've entered in to an agreement (a service agreement, probably) to use your membership to rent movies on specific terms, including when you'll return them and what you'll pay for them, plus what will happen if those terms are broken. Now, looking at it from their point of view, again, they are saying that you've breached the terms of the agreement and they have suffered damage as a result - hence the reason they are chasing this debt.

 

You still haven't said you HAVE broken the terms, so I think we still need to continue along the lines of you deny this debt is legitimate as you have seen no proof of it existing and you dispute the fact that you owe them money - is this right?

 

I will contact them by letter but i wanted to check her first whether they can actually affect my credit rating. That is all that matters to me. I dont see why i should spend my time explaining to them why i dont owe them money. But this will be time well spent if it stops me getting a mark on my credit history. If they cant then i wont waste my time.

 

The CAG mantra is 'never speak to them by phone, never speak to them by phone, never speak to them by phone'... Documentation beats conversation further along the line should you need it. You WILL need it if they DO default your file and you need to deal with that - that's a big 'IF', though.

 

I have checked my credit file and its definately not showing on there yet as of last night. The only things on my credit file are long term contracts such as overdraft, mobile phone, mortgage, hire purchase agreement etc. None of these are anything similar to a blockbuster account so i thought it may not be able to affect it.

 

It can affect it, but it may not. As an example, I was a member of a Gym. I gave them notice of my terminating the agreement and I cancelled my Direct Debit after the final payment was due. They said they hadn't received the notice, but I had proof that they did. The debt was sold to a debt collection company and they gave threats of Court action if I didn't pay. (and increased the debt 100% with their charges and interest) I didn't pay. More threats. Still didn't pay. That was 2 years ago - haven't heard from them since and nothing on my file about it. Had their been, I would have had to sue them to get it removed. I was lucky in that respect, but you'll need to see what happens in your case.

[kevlo]

You still haven't said you HAVE broken the terms, so I think we still need to continue along the lines of you deny this debt is legitimate as you have seen no proof of it existing and you dispute the fact that you owe them money - is this right?

 

yep thats right, as said in my initial statement. The movie they say was never returned was Toy Story 2. There is only 2 of us in our house myself and my partner. We still have the card and neither of us would hire such a film and we dont have kids. I know from experience though. If you forget your blockbuster card they will find you on the computer and let you rent it out without your card so it wouldnt surprise me if someone found the wrong account.

 

To be honest though, if they have the ability to affect my credit report i will just pay it off. Although it makes my blood boil its not worth the risk of me losing a house i really want for the sake of £48.

[car2403]

yep thats right, as said in my initial statement. The movie they say was never returned was Toy Story 2. There is only 2 of us in our house myself and my partner. We still have the card and neither of us would hire such a film and we dont have kids. I know from experience though. If you forget your blockbuster card they will find you on the computer and let you rent it out without your card so it wouldnt surprise me if someone found the wrong account.

 

To be honest though, if they have the ability to affect my credit report i will just pay it off. Although it makes my blood boil its not worth the risk of me losing a house i really want for the sake of £48.

 

There is that, but that is what they want you to do - if you don't owe it, don't pay it, but you have to weigh up those risks and make your own judgment call, really. Personally, I wouldn't pay it, but then I'd be prepared to go through the rigmarole of fighting them and some may not be so willing.