defaults on my credit file

[billie_32]

HI

Can a company add a default to my credit file when I have been using a DMC since Jan 2002 and never missed a payment?

 

The account in question has been paid back in full and marked as satisfied it was paid back around 2004/5 but the default is dated 6/7/2007

 

Also is there any way I can find out if a default notice was given when I originally started the DMC in 2002 as I would of thought that the defaults would of been around the time I stated the DMC.

 

Thank you

[silverfox1961]

Hi and welcome to CAG

 

Do you have written proof that the debt is satisfied? If so, write to the Original Creditor demanding what they are up to.

 

I would also write to the Credit Reference Agency disputing the default. They have 28 days to take it up with the OC and get back to you.

 

I am a little concerned that they have defaulted you after you paid off the debt. That shouldn't happen

[Jamesx81x]

Do you have evidence of the debt been paid in full?

 

Silverfox is right in saying you should not have received a default for an account that has been paid in full. After all how can you default on a non existent account

 

I would make sure 100% that they have been paid in full. If it has then you need to write to the creditor asking them why they are issuing defaults on a settled account 2 years after.

 

Best of going through the creditor themselves as if the creditor tell Experian the info is correct they will not do anything about it. They should, but wont!

 

James

[billie_32]

Do you have evidence of the debt been paid in full?

 

Silverfox is right in saying you should not have received a default for an account that has been paid in full. After all how can you default on a non existent account

 

I would make sure 100% that they have been paid in full. If it has then you need to write to the creditor asking them why they are issuing defaults on a settled account 2 years after.

 

Best of going through the creditor themselves as if the creditor tell Experian the info is correct they will not do anything about it. They should, but wont!

 

James

 

Thank you for your reply

 

I have been in touch with my DMC and they have confirmed that the account was paid in full 6.11.2006 Cap 1 also confirmed I had actually over paid by £7.98 ( I didnt get that back!)

I will write to Capital one.

Thank you again

[billie_32]

Hi and welcome to CAG

 

Do you have written proof that the debt is satisfied? If so, write to the Original Creditor demanding what they are up to.

 

I would also write to the Credit Reference Agency disputing the default. They have 28 days to take it up with the OC and get back to you.

 

I am a little concerned that they have defaulted you after you paid off the debt. That shouldn't happen

 

 

Thank you for your reply, I had paid the account in Full on 6.11.2006 so there was no reason to put a default on my record.

 

Also my DMC said that a company can put a default on my record even if I am paying all I can afford and that the original company & the debt collection company can put defaults for the same debt is this right?

[silverfox1961]

When you are on a debt management plan, a Creditor can either put "Arrangement to Pay" on your credit file or if the amount you are paying is below what they would class as an arrangement, they would file a default instead. What they cannot do is file a default after a debt has been repaid.

Simple reasoning. Once the debt is repaid so ends the contract and with that, your permission for them to mark your credit file.

 

Complain!

 

On another point, as this was a Cap1 card, I'm sure there would be 'overlimit' and 'late payment' charges-Yes? If so, you could reclaim those

[Jamesx81x]

While the agreement is still unpaid it is correct they can issue you with a default at any time they wish, but there can be only one default per account. If a DCA takes on the account it has to be decided between them and the creditor who is going to be responsible for reporting the data.

 

There can only be one default.

 

As your account was paid in full around 2005 they have no legal right to place a default for that account on your file dated 6/7/2007. There is no account for them to issue the default on.

 

Threaten the original creditor with legal action for breach of the data protection act if they do not remove the entry or if the DCA has placed it send a letter to them.

 

Also demand they return your £7.98, might sound daft but it is the principle of the matter and the fact they have not even got the decency to return it to you knowing full well it is overpaid. No need to line these leaches pockets any more than has to be.

 

James

[billie_32]

While the agreement is still unpaid it is correct they can issue you with a default at any time they wish, but there can be only one default per account. If a DCA takes on the account it has to be decided between them and the creditor who is going to be responsible for reporting the data.

 

There can only be one default.

 

As your account was paid in full around 2005 they have no legal right to place a default for that account on your file dated 6/7/2007. There is no account for them to issue the default on.

 

Threaten the original creditor with legal action for breach of the data protection act if they do not remove the entry or if the DCA has placed it send a letter to them.

 

Also demand they return your £7.98, might sound daft but it is the principle of the matter and the fact they have not even got the decency to return it to you knowing full well it is overpaid. No need to line these leaches pockets any more than has to be.

 

James

Thank you for your reply

 

As it was 2002 when I started having problems can I find out if any the defaults that have fallen off are the same as the one I have now. I have quite a few which I would of thought would have been defaulted around the time I started.

 

Is it best to write or phone? (sorry I am new to all this)

[billie_32]

While the agreement is still unpaid it is correct they can issue you with a default at any time they wish, but there can be only one default per account. If a DCA takes on the account it has to be decided between them and the creditor who is going to be responsible for reporting the data.

 

There can only be one default.

 

As your account was paid in full around 2005 they have no legal right to place a default for that account on your file dated 6/7/2007. There is no account for them to issue the default on.

 

Threaten the original creditor with legal action for breach of the data protection act if they do not remove the entry or if the DCA has placed it send a letter to them.

 

Also demand they return your £7.98, might sound daft but it is the principle of the matter and the fact they have not even got the decency to return it to you knowing full well it is overpaid. No need to line these leaches pockets any more than has to be.

 

James

 

Thank you for your reply I am really confused as to why they would do this after it has been paid

[Jamesx81x]

Always write!

 

One, you will have a written record of everything for your reference and two, if you phone you will find yourself dealing with the most arrogant worms you will ever come across and find you just put the phone down angry and with nothing gained .

 

Send your letters recorded delivery too

[BRIGADIER2JCS]

WE do believe that the CRA's archive data but you may need to do a subject access request under the Data

protection act to get the info.

[Jamesx81x]

Because this is how they operate, they are trying it knowing full well they cant do this.

 

They are trying to screw you over(as they are nice like that) and think they are above the regulations and law but they are not.

 

Write off to them demanding the remove the default otherwise you will pursue legal action against them

[billie_32]

Always write!

 

One, you will have a written record of everything for your reference and two, if you phone you will find yourself dealing with the most arrogant worms you will ever come across and find you just put the phone down angry and with nothing gained .

 

Send your letters recorded delivery too

 

Thank you for the tip off! I dont need any more stress.... I have finally pulled my head out of the sand and after 9 years of being with a DMC I going tostart sorting thing out for myself, I owe just over 12k and the DMC have told me that it is going to be another 10 years until I am debt free!!

thanks again

[Jamesx81x]

Im not a fan of IVA's personally but would that not be a more viable option for you? As you would be debt free within 5 years and the remaining balance written off.

 

Only thing being they are legally binding whereas a DMP is not

[BRIGADIER2JCS]

So many IVA's fail for numerous reasons and matters get worse.

[billie_32]

Im not a fan of IVA's personally but would that not be a more viable option for you? As you would be debt free within 5 years and the remaining balance written off.

 

Only thing being they are legally binding whereas a DMP is not

 

I was told at the time by the DMC that I wouldnt be able to do an IVA as I didnt owe enough! Now when I ring them and talk about how my account is going they say ' you would of been better on a IVA!' but its too late now as I owe less than 15K!

I was stupid at the time I realise now that I should of spoken to someone else (its a long story but this debt wasnt mine just in my name!..like I said I was stupid)

The DMC have warned me that my creditors wont deal with me directly and that they will add interest and charges if I try and sort it out myself

[BRIGADIER2JCS]

I have little faith in DMC'S

[Jamesx81x]

They can add interest even if they deal with it for you, they can only request they stop.

 

Is any of your debt credit cards or loans with PPI etc as you may be entitled to claim alot of money back

[BRIGADIER2JCS]

I cannot see that the DMC's statement that creditors will not deal directly with anyone holds

any merit if a creditor can reach a settlement without loosing money they would accept the

proposal.

[billie_32]

They can add interest even if they deal with it for you, they can only request they stop.

 

Is any of your debt credit cards or loans with PPI etc as you may be entitled to claim alot of money back

 

Yes they are all with credit cards and one loan, I have written to them all asking for my money back just waiting for reply s. Thanks again for your help.

I have spoken to all my creditors and they have said that they are happy to deal directly with me I am just waiting to get this back in writing, then I will the cancelling my agreement the the DMC (Ithink they have had enough out of me in the last nine years)

When I spoke the a couple of the creditors they have offered me full and Final payments, but after reading about them on here I am not 100% if this is a good idea.

I have worked out that if I carry on paying what I am paying and put the DMC fees directly to my debt I will be debt free in about 7 years

If I could trust the full & final it would be a lot sooner

[BRIGADIER2JCS]

Great to see someone fighting back.

[billie_32]

I cannot see that the DMC's statement that creditors will not deal directly with anyone holds

any merit if a creditor can reach a settlement without loosing money they would accept the

proposal.

 

I know that now, I have spoken to all my creditor directly and they are more than happy to deal directly with me, some have offered Full & Final payments (I am not sure after reading about them I can trust them) either way they will be getting more money per month.

I think they are trying to scare me into staying with them

Edited May 18, 2011 by billie_32

[Jamesx81x]

All makes sense why they would tell you such things now you have said you pay them fees, they dont want to lose your business, they are not interested in your welfare, harsh but true!

 

There is so much free help out there, Pay plan, CCCS etc and the fees you are paying this company could go towards your debt as you said.

 

If you have the full and final in writing prior to you making the payment then you should be ok, as they would be stating a figure they will accept to end your agreement with them.

 

Do you have statements detailing all the charges and did the loan have PPI? Also do you still hold the agreements for each individual account?

[billie_32]

All makes sense why they would tell you such things now you have said you pay them fees, they dont want to lose your business, they are not interested in your welfare, harsh but true!

 

There is so much free help out there, Pay plan, CCCS etc and the fees you are paying this company could go towards your debt as you said.

 

If you have the full and final in writing prior to you making the payment then you should be ok, as they would be stating a figure they will accept to end your agreement with them.

 

Do you have statements detailing all the charges and did the loan have PPI? Also do you still hold the agreements for each individual account?

 

No I don't have any account details I have a couple of account numbers but I don't get any post from anyone, I just put it down to not missing any payments in 9 years

Out of the 7 debts I have only 1 account is still with the original creditor.

I am hoping I will get some PPI back so that can go towards my debts, what I do'nt want to happen is I pay everyone off them find out I have loads of defaults still on my record.

[Jamesx81x]

You need to do a CCA request to the account which is still with the original creditor.

 

Are the remaining 6 debts with Debt Collection Agencies and do you know which ones?