Old debt help.

[Mr8G]

Hi all, I'm after some advice to see if there is anything I can do.

 

When I was 18 and unemployed,

 

I foolishly took out a £10k loan with HSBC (08/10/2004) to buy a car.

 

I managed to get a job that didn't pay great, and near enough my whole wage was spent on loan repayments, insurance and petrol.

 

In 2005, I lost my job and the inevitable happened, I couldn't afford my loan.

 

In April, I defaulted on the loan.

 

My Dad took on the car and I 'disappeared'.

 

Desperate to get back on my feet, I failed to make any payments and got myself into a rut.

I'm not proud of what I done, but that's in the past.

The collection agencies stopped all contact around April/May last year.

 

Then in 2008, I opened a business account for a friend, that he didn't use as the investment into the company didn't come off and he failed to tell me.

 

The next thing I know, Barclay's are on the phone saying I owe them £1000 for a business software package that's never been used

(still in the cellophane and now in my possession) and business bank charges.

 

I explained the situation to them and they agreed to let me pay that back at £50 a month, and I've never missed a payment on this.

 

Now I'm fully back on my feet, earning a good wage working for the ambulance service.

 

I've managed to save and buy a car and I pay my insurance through direct debit, RAC cover via direct debit, Barclay's via direct debit and I have two standing orders.

 

All in all, these add up to £406 a month and I've not missed a single payment since I opened the account with Santander.

 

I don't have an overdraft facility so that has never been used, and I've never had less than £250 in the current account since it's been opened.

I also have a savings account with Santander that I regularly pay into.

 

Now, I've just had a quick look at my credit report as me and my partner have been looking at houses, and I was just interested to see.

 

According to the sites (I've checked a couple),

I've got two defaults,

 

1st for £14,873 from HSBC, default is 02/04/2005

2nd for £9893 from the collections company. default is 02/04/2005

 

I know I've not paid this loan, but why does it appear twice on my credit record?

 

And how long will it say on my record?

 

And last question, how long is it going to affect my credit?

 

One of the sites said a few car insurance companies done checks, I presume this is when I've been on Compare The Market and similar sites while getting insurance quotes, and one from Alliance And Leicester, I presume this was checks in getting my Santander current account. But I've never tried to get credit for anything since 2004, due to learning that if I want something, I need to save for it, but saving £150,000 for a house is a bit much.

 

Any help or information is much appreciated, thank you.

[dx100uk]

it should not be listed twice end of.

 

and the defaults should have gone

 

you need to ask the cra why on both.

 

dx

[Mr8G]

Thanks for the quick reply! I'll do just that.

 

Is this something that is still going to affect me? I've been thinking about financing a car too, as mine is starting to become a bit tired (a money pit) and I don't want me being stupid, young and naive ruining my life.

[Guest]

in both cases, as dx says, they should no longer be there anyway (defaults stay on cra file for 6 years)

request that they be removed from your cra files accordingly.

[Mr8G]

I've just got off the phone with the credit score agency.

 

Basically, they said that I defaulted with HSBC, who then sold the debt to Arrow who I then defaulted with, that's why it's showing as two.

 

They also said it'll stay on my record until it's paid in full. Because it's over 7 years old, once it's paid it will come off on the following month, and it's still on my record now because it's still classed as 'active' even though there has been no correspondence.

 

Is this right or have I been well and truly fobbed off?

[Mr8G]

I've just spoken with another company who advised me to contact the creditors and make them an offer to pay off the debt.

 

They said that once the debt has been satisfied, it will stay on my file for 6 years. If I don't settle it, it will be on my credit file forever, then it'll remain for 6 years after it has been settled.

 

If this is the case, I'm going to be snookered as far as getting a mortgage is concerned for about 7-8 years aren't I.

 

But this information from The Credit Expert site contradicts what people are telling me.

 

A defaulted account will stay on your credit report for 6 years from the date the default was registered.

After 6 years the default will be automatically deleted from your credit report, regardless of whether it has been paid (satisfied) or not.

Default deletions usually take place overnight, so if your credit report states the default date as 13/02/10, the Default entry will be removed overnight on 13/02/16 and will no longer appear on your credit report as of 14/02/16.

A lot of people get accounts that are heavily in arrears mixed up with defaulted accounts.

A defaulted account will be clearly marked on your credit report as a Default. It will show the Default Date, and if the debt is still outstanding it will show the Current Balance.

If a Default has been paid, then it will be marked as Satisfied or Balance Satisfied.

Edited March 26, 2012 by Mr8G

[BRIGADIER2JCS]

Hi going on the dates you have given,these defaults should have

been removed last year.

There can only be one default ever for any debt.

The accounts should have been removed after 6 years the advisor

you have spoken to is talking rubbish ALL DEFAULTS?ACCOUNTS are

removed after 6 years paid or not.

Which CRA were you talking to please.

[BRIGADIER2JCS]

Have you used Noddle(Call Credit) or Check My File?

 

The Credit Expert Answer is totally correct.

First Job make a FORMAL COMPLAINT to the CRAs Data Controller

regarding the duff advice asap.

[Mr8G]

Credit Score Matters was the first, then I clicked one of the free ads on here, Debt Advice Online and someone called me up and gave me the other info.

 

I can't recall what company he said he was from, my heads getting in a bit of a whirl with all this.

[BRIGADIER2JCS]

Ok, it's formal complaints all round, If you like I can draft a complaint

for you later today.

Who ever has advised you this way is imo dangerously stupid.

 

Please Check Equifax and if you havn't done so Experian if the debts

show on those then we can sort this out.

 

If the debts are there then it will show who owns the debt and

they can be taken to task at the same time.

If you can just sort the data into a logical order I''ll do a letter

when I get back from court.

[Mr8G]

Hmmmm, that's interesting.

 

I've just registered on Noodle (thank you very much for that), and the details there seem very different to all the other sites I've been on.

 

According to this, I defaulted with Arrow Global on 08/05/2006, and the account was opened with a balance of £9898 (same as the default balance), and was opened 12/09/1997, so I would have been 11 then. So that doesn't make sense to me.

 

HSBC on the other hand, opened on 08/10/2004 and this is the date I took out the loan with an opening balance of £14,770 (that's a lot of PPI isn't it!) and a default balance of £9746 on 03/05/2006.

 

So how can the same debt default twice in 7 days? And why is the information so different between the credit score agencies?

 

If I'm honest, I don't know what any of this means and it's starting to really stress me out.

 

Thank you so much for the help though, I don't think you'll ever understand how much I appreciate it!

[BRIGADIER2JCS]

OK Mr8G,

List all the info by date order and I'll write a complaint for you if you want.

[Mr8G]

Thank you so much!

 

12/09/1997 - Arrow Global LTD current account started with a balance of £9898 (I was 11 at this point).

08/10/2004 - HSBC account started with a balance of £14770

03/05/2006 - HSBC account default - Default balance of £9746

08/05/2006 - Arrow Global LTD default - Default balance of £9898

 

According to the status history, Arrow Global have only been active since December 2010. Does this mean anything?

[Mr8G]

Arrow Global LTD 02/03/2012

 

Date of birth

..../1986

 

Account type

Current Account

 

Account number

***2826 0

 

Account start date

12/09/1997

 

Opening balance

£ 9,898

 

Repayment frequency

Monthly

 

Date of default

08/05/2006

 

Default balance

£ 9,898

 

 

 

HSBC 29/02/2010

 

Date of birth

same as above/1986

 

Account type

Bank

 

Account number

**********2061 0

 

Account start date

08/10/2004

 

Opening balance

£ 14,770

 

Repayment frequency

Monthly

 

Date of default

03/05/2006

 

Default balance

£ 9,746

 

 

 

 

 

That's the details copy and pasted of the two as well. And on Noddle, these are on the Other Accounts section, and not on the Personal Loan section. Not that it means anything.

 

Is it normal that they've both recently been updated?

Edited March 26, 2012 by Mr8G

[Mr8G]

Just had a look on Equifax, and the details there are the same as Noddle.

 

So how can I default on the same loan twice in 5 days with two companies?

Edited March 26, 2012 by Mr8G

[BRIGADIER2JCS]

Ok I'm going to work on this on line, so please bear with me.

[Mr8G]

Again, thank you!

[BRIGADIER2JCS]

Will post up the letter tis afternoon.

[BRIGADIER2JCS]

Letter re: HSBC/Arrow Global Dual Default.

 

The Data Controller HSBC and Arrow Global.

 

Dear Sir or Madam

 

Ie write in reference to HSBC account number xxxxxxx defaulted on 02/04/2005

and sold/assigned to Arrow Global and showing as defaulted also on 02'04/2005

As you are no doubt aware these defaults should have been removed from all credit

reference agency files on02/04/2011 paid or not in line with normal policy this has not been done.

 

I therefore require you to immediately remove these entries from all credit reference agency

files and to confirm within seven (7) days that you have done so.

 

This has caused me considerable personal difficulty in obtaining credit over the past year

and I am seeking reparation for this embarassment and difficulties your companies actions have caused,

as two damaging entries were left in place for nearly a year I believe compensation of at least £1000.00

per entry to be very reasonable in this situation.

Also further errors have been maded which have com to light when I checked my credit files,

Arrow Global has posted a default entry dated 08/05/2006 which is plainly inaccurate as a debt

can only be defaulted once even if it is sold or assigned to another party.

 

All together there are so many inaccurate statements and irregularities in the

default dates and default amounts that it can only be described as total incompetence

on both HSBC and Arrow Globals parts that I feel I must report all these matter to The OFT,

The ICO and also make a formal complaint to the Ombudsman Service.

 

For clarification and the prevention of further mistakes, The Allged Debt is Statute Barred

and I will not be paying.

 

All the default entries are to be removed immediately and you will confirm your compliance

in writting within 7 days.

I expect also to receive a favourable answer regarding compensating me for the distress,

inconveniance and difficulties this incompetence has caused.

 

Yours with a two finger salute,

 

Mr8g.

 

Ok edit add delete place account no.s where needed.

Get screen prints of Experian and Equifax files with these

entries to send attached.

 

The advice given by the companies that just display other

agencies files have given advice that verges on criminal,

it's totally wrong illconsidered and should also be reported.

 

Brig.

*This part can be added if it is factual*

 

 

I have also concluded that no payment or written acknowledgment

of the alleged debt has been made in the past 6-7 years this matter

is now statute barred therefore I will not now or in the future be making

any payment or offer of payment for the alleged debt