Dealing with small defaults and clearing up my credit report

[ncr]

Good Afternoon All!

 

This is my first post here, so hopefully I get it right.

 

Around six months ago I applied for funding to start up a new business, and unfortunately have been turned down by the bank,

they advised me to obtain a copy of my credit report at the time, but for one reason or another - I didn't.

 

I tried again a few weeks ago and declined again. This time I obtained a copy of my report from Experian, Equifax and CallCredit online.

 

Upon looking at the reports, there are several discrepencies (old accounts that I failed to update addresses for, and some that I thought no longer existed - but are still "open")

- these are easily rectified with some simple letters.

 

However, there are a few that worry me, and are going to be the cause of being declined finance.

There are 3 defaults, 2 with "Lowell Portfolio" and 1 with "HSBC".

The accounts are very old, but have all been passed to Lowell Portfolio/HSBC(well, Metropoliton I think) in the past 2 years.

I have been paying towards these monthly for some time (although small amounts).

 

I have emailed Lowell Portfolio and explained the situation, asking them if they would be willing to remove the defaults on both accounts

if I were to increase my payments in order to pay off the debts in the next 12 months.

 

They responded in writing saying they are unable to do this, and to contact them to increase my payments. Not what I wanted, but I wasn't really expecting much anyway.

 

The amounts owing to Lowell Portfolio are £1,200 and £500, and to HSBC it is around £1,300 (all approximate).

I am not in a position to pay these off in full, and do not want to increase the payments if it isn't going to improve my credit score - as that is what I am after here.

 

I have read through some posts on the forums here and see some guidance about requesting a CCA etc. - should I do this here?

The debts are quite old as I mentioned, and have been passed from Littlewoods/Great Universal to Lowell Portfolio - who do I send the CCA to?

 

I also do not remember seeing any "default notices" - I keep all my paperwork for open accounts, and cannot find them anywhere. Could I ask for these?

 

In regards to HSBC, this is regarding a very old account.

However, I have gone through some old paperwork and remember trying to file a complaint against them against unfair bank charges

- at the time it was for just under £1,200 worth of charges (interest on top)

- which, now that most of the debt is paid of, equals a good part of the outstanding balance.

 

I may be able to dig out the old statements for this account, or even my original calculations - worse case,

I guess I request it from the bank - although they passed to to "Metropoliton Collections" or something.

 

Any ideas what I can do here?

 

All my other accounts are in good standing (2 small credit cards and 2 bank accounts, 1 with a small overdraft),

and I have no CCJs - so I would like to see if I can remove these defaults from my file and clean up my report.

 

I am not trying to "evade" any debt, as I am aware that one way or another, all of the above debts have been incurred - and would be more than happy to keep paying them if they remove the default notices. I just want to improve my credit score, so that I can approach the bank again and start up a business.

 

Any help would be appreciated - and many thanks in advance! Sorry if I waffled on a bit...

[twofoot]

Good advice but I'd start at 25%

[dx100uk]

sri i cant see i agree with stoppng payments.

 

defaults dont get marked as satisfied, the default stays on the file.

 

it might be better to continue to pay

 

on the 6th birthday of the default, the default and the account should vanish where paid or not.

i see there are catalogue debts here

 

most catalogue debts are littered with unlawfull PENALTY charges

if you can PROVE that the default was SOLELY due to PENALTY charges

 

then get reclaiming and the demand the defaults removal.

 

you already state the HSBC default involved bank charges

if you've got the default notice

and the stated balance obviously nclude bank charge

then it is invalid and must also be removed from file.

 

how long have the defaults to run before 6th birthday?

 

as for F&F on ANY debt

 

never ever bother unless the creditor/dca will remove ALL negative data

and mark the debt SETTLED or SATIFIED

 

thre is NO POINT in getting the partial settlement marker

you might as well BURN the money

 

dx

[ncr]

Good Morning!

 

Firstly, thank you for the responses - much appreciated.

 

I wasn't too sure on stopping the payments, as I have kept them off my back with token payments for several years now.

 

In regards to the default dates, on my credit file I can see:

Lowell (was Littlewoods) - July 2010 (same story as below, couldn't pay every 4 weeks, made token payments

- which were less than the £24 a month they kept charging

- but this one took around 18 months before it was sent to Lowell)

- total outstanding £1,94 - paying £10/month 1 (but more than I thought)

 

Lowell (was Great Universal) - December 2011 (this is the newest default, and I cannot understand why it was defaulted

- when it was with Great Universal I never had a default, but I couldn't make payments as per their "4 week" plan - like most people, I get paid monthly

- after arguing with them for several months through "NDR" they eventually sent it to Lowell

- who stopped the monthly £24 charges (which I incurred for nearly 12 months) I can now pay monthly!) - toal outstanding £535 - paying £20/month.

 

HSBC / Metro - March 2008 - total outstanding £1,218. This is the most annoying account, it is pretty much all paying off the bank charges now - but they are getting only £5/month from me.

 

In both Lowell cases, the default could be blamed on charges here, as I couldn't keep up the payments,

the charges amounted to more than the payment they wanted, so they added more charges!

 

They are all small payments - and took me ages to get them to agree to it.

 

My own bank increased my overdraft around November 2011 (only by a small amount), but after attempting recently,

there is "adverse data recorded" so they automatically decline it.

 

I'm therefore assuming it is the Great Universal/Lowell debt that is stopping it completely - no default in November 2011, but Lowell stuck one on in December 2011.

Looking at these forums though, this is sort of normal?

 

I might have most of my statements from the catalogues, but I'm not 100% sure, as they are sold to Lowell, how do I go about getting statements?

Would requesting a CCA from them do any harm as well?

I guess this would be sent to Lowell?

The accounts themselves are years old (10ish years I think).

 

All three defaults were due to a divorce where there were arguments over who was going to pay them,

but unfortunately they were all under my name - so I have to pay them (and no doubt she has a lovely clean record.) - besides the point though.

I've been told I can put notes on my file, but sometimes this adds to the negative impact.

 

In regards to HSBC, you mention it'll disappear after 6 years, it's been 4 years already - at £5/month... shall I just hang it out?

Will the whole debt just "disappear" after that time - or just the default?

Would it be worth fighting the balance now as pretty much 100% of the outstanding balance is bank charges?

 

I also found here somewhere (but cannot find it again for some reason) that if the default is for a small amount (i.e. £500) then you can try and ask the creditor to remove it - is this right?

 

Thanks again for your help guys, hugely appreciated.

[BRIGADIER2JCS]

A CCA is a lawful request for information and is not an acknowledgment of the debt.

You can place notices of dispute on CRA files, it does no harm.

All default entries are removed after 6 years paid or not,

the debt still exists and is payable.

 

If an account is defaulted and the default sum is mainly made up of charges without said charges the account would have NOT defaulted

a default should not be placed, and can be contested.

As to the £500.00 advice I've never heard of it!

[dx100uk]

i think you def need to send a few sar's out

and get all the statements to look at reclaiming unlawful PENALTY charges.

then thus hit the defaults as a result.

 

 

dx

[ncr]

Sounds like a plan - in regards to the accounts, do I send it to Littlewoods/Great Universal or Lowell? and for HSBC, do I send it to them or Metropoliton?

 

Thanks again!

[BRIGADIER2JCS]

SARs go to the original creditors addressed to the data controller.

Send RD to trace delivery 40 days start from the day the receive it.

[ncr]

Thanks again - I've searched the forums for a procedure to follow for the SAR (what happens after 40 days if they don't respond?) but can only see peoples questions regarding it. Do you have a link?

 

Also, is it worth sending a CCA request to Littlewoods/Great Universal (or Lowells) at all? Would this achieve anything?

[BRIGADIER2JCS]

CCA to Lowell can do no harm.

 

After 40 days if no reply received send

a reminder and report it to the Information

Commissioners Office.