Default removed, now 'arrangement to pay' appeared

[davedru]

Hi all,

 

I started a general post (http://www.consumeractiongroup.co.uk...-needed-please) but was advised to post in individual forums - so here goes.....

 

There appears to be some fishy goings-on with regards to an old Debenhams store card agreement to which I have been making token payments since June 06.

 

I received a default notice from the initial lending company in Nov 06, and again in Apr 07.

 

In June 07 I received notification that the ownership of my account had been assigned to CL Finance.

 

I received a default notice from CL Finance in August 07.

 

This agreement recently disappeared off Equifax,

presumably as the 6th birthday of the default had been met (or approaching?!?).

 

I have recently received an alert (text/email) advising that a credit limit had been changed from £0 to £900,

which I thought was weird as I haven't applied for credit for years.

 

On checking Equifax an agreement to pay has re-appeared from 'CL Finance' with a balance of £903 and a credit limit of £900.

I have signed up for a 30-day trial from Experian which shows an agreement to pay since July 08 but repeatedly stating that I am 6 payments late?

 

Surely this is wrong.

 

I understand that my Statute Barred calender has not started, due to my continuing token payments,

but I have been informed that all references to a defaulted debt must be removed from credit files after 6 years has passed from date of default, whether paid off or not.

 

I can't see any historical records on Equifax or Experian, if such things exist, so can't see exactly what has taken place.

Will the CRAs be able to assist with this? If an agreement to pay has been added, surely this is the debtors doing and the CRAs innocent?

 

Who do I query this with? The CRAs or CL Finance? Any advice on what to say?

 

Thanks all,

 

DD

[dx100uk]

i would suggest that your first port of call is the cra

 

write or use email and query why an account that went has comeback

 

they are required to check their data is correct.

 

p'haps another cra file might be useful

 

i know noddle give account history

 

dx

[davedru]

Hey dx100uk, you following me??

 

Would I do best to contact both Equifax and Experian? Do the CRAs communicate/share with each other?

 

I had a trail of 'alerts' with Equifax but, as I have recently re-signed up for a full 30-day report (as opposed to Identity Watch Lite only), these have all disappeared so I don't even have these as proof of recent changes to my file.

 

Ooo, noddle. Haven't heard of them but I'll have a look.......

 

Cheers,

 

DD

[davedru]

And they're free!!!

 

DD

[davedru]

...We’re sorry but unfortunately we’re not able to provide you with access to your credit report as we’ve not been able to automatically verify and validate your identity....

 

It's a shame, cause it looks good! Any advice on how to have them recognise me - no recent address changes, I am on the electoral role, etc...

DD

[BRIGADIER2JCS]

Call them and ask what further detail they require.

[davedru]

Unfortunately Noddle were unable to offer any explanation.......

 

However, I have drafted the following letter to Equifax. What are people's opinions??

Dear Sir/Madam,

 

I write with reference to recent activity in my credit report. Up until 11/07/12 I was a subscriber to Equifax Identity Watch Lite. On 11/07/12 I contacted Equifax to cancel but was offered, and accepted, a free trial to Equifax Credit Score / Complete.

 

For a couple of weeks prior to this I had received a number of alerts advising of activity in my credit report. I recall an alert advising of the removal of a credit agreement and a particular alert advising of a new credit agreement / credit limit of £900. This seemed strange to me at the time as I had taken no new credit.

 

Unfortunately, since the transfer from one Equifax product to the other, all my previous alerts have disappeared and are neither visible in the archive.

 

As such I am unable to investigate this new credit agreement / credit limit. On examination of my credit report it can be seen that the only agreement with a limit of £900 is one for a credit card from C L Finance (ending XXXX), with an ‘Arrangement to pay’ status. This entry shows as being updated on 21/06/12. It is my impression that the status of this account was previously ‘Defaulted’.

 

I respectfully request that you check and confirm, by reply, that the data which you hold for me is accurate and up to date. Specifically, could you please confirm that the C L Finance agreement previously had the status of ‘Defaulted’. I also request that any historical alerts you have for me are reinstated.

 

Thanks in advance.

 

Yours Faithfully,

 

Thanks,

DD

[BRIGADIER2JCS]

Do you have an arrangement with CL finance?

[davedru]

Hi Brigadier, thanks for responding.

 

Not as such, no.

 

GE Money issued a default notice on 16th Aug 06 and again on 27th Nov 06.

I replied to these and explained my then-current financial situation to them and asked that they accept a token payment of £1, which I began to pay prior to receiving a response.

 

GE Money refused to accept these payments, despite completing all income/expenditure forms , etc, until 21st March 07 when they relented.

Despite this, I received a further default notice on 26th April 07 even though I had continued to make these token payments as stipulated in their earlier acceptance.

I replied advising them of this.

 

I received a letter, dated 8th June 07,

from C L Finance informing me that '...(my) account with GE Money has been assigned to us as permitted under the terms and conditions of your credit agreement..

...ownership of your account has changed to C L Finance....' C L Finance did state on this letter that the arrangement I had with GE Money would continue.

 

Following the rejection of a £1 payment (things really were that desperate)

I received another default notice on 20th August 07,

but I remade the payment and was told by "Christina" to ignore the default notice.

 

I continue to make these payments.

Although my income has improved somewhat, thankfully, I now have a wife and two young children to support.

The last 'statement of account' I received from C L Finance was on 8th Feb 08 but I moved house around this time.

 

What are you thinking?

 

DD

[BRIGADIER2JCS]

Hi DD,

 

So when exactly was the last payment made?

[davedru]

Last payment was made on 1st August.

 

On checking, it appears as though the payee is still GE Money so I assume they pass it to C L Finance??

 

Surely the issue is that the credit agreement status has changed from defaulted to agreement to pay with the CRA?

 

DD

[BRIGADIER2JCS]

The entry ''arrangement to pay'' is a true picture of the account as it stands, the debt

cannot become statute barred as payments are being made.

Is there a default date showing.?

[davedru]

True, and I agree that this is a true picture.

I also understand that this cannot become statute barred as the 6 year calender has not started as I have continued to make payments.

However, I understand that a Defaulted agreement should be removed from a credit report after 6 years (statute barred or not) so as to not unfairly treat those who do make some attempt at repaying debts.

My issue is that I am sure the account status was 'Defaulted'. It now states 'Arrangement to pay'. There is now no mention of a default date but just a long calender list of 'AP'.

My question, I suppose, is are creditors/debtors/CRA allowed to remove a default notice when it approaches 6 years and alter the records to something else, such as 'AP'?

 

DD

[davedru]

..........to continue on from my last last post

 

Surely if this was allowed, should I stop the payments, another default could be placed against the entry for another 6 years??

 

DD

[BRIGADIER2JCS]

Ok DD Place a notice of dispute on the CRA files you can do this on the phone.

 

Then a formal complaint to the Data Controller at CL Finance.

 

I have just spoken to a contact at The ICO '' This entry is unfair and should be continued

as it disadvantages the data subject '' a formal complaint should be made to CL Finance

an if this is not immediately resolved by them then a complaint to the ICO should be made

as this IS something they will act on.

 

Dave if you want a letter drafted later today let me know.

[dx100uk]

yes this AP marker is very unfair.

 

dx

[BRIGADIER2JCS]

yes this AP marker is very unfair.

 

dx

 

 

Ann for once the ICO will act if the creditor/dca will not remove the entry completely!!!!!

[davedru]

Thanks for your replies guys.

 

Are you saying that I shouldn't bother sending the letter I drafted (above) to the CRA? I thought it would be an idea to have some sort of proof/comment from them that the default has been removed since I don't appear to have access to historical alerts.

 

Are you referring to the AP entry as unfair? Or the removal of the default? Or both?

 

Brigadier, if you could draft me a letter for C L Finance that would be great, thanks. Might make it clearer for me too !

 

DD

[davedru]

Just as a little bit of extra info, on Equifax, the AP entries are labelled every month since July 2008.

 

DD

[BRIGADIER2JCS]

Ok I have spoken with a contact at the ICO, and the changefrom default

to AP is not considered fair as it puts you at a disadvantage as the default

removal should be the end of that report for ever.

 

So send the following letter to CL Finance as the entry is in their name.

 

The Data Controller

CL Finance.

 

Ref:xxxxxxxxxx

 

FORMAL COMPLAINT Data /Protection Act Breach.

 

Dear Sir or Madam,

 

I refer to the entry made by CLL Finance on my credit reference files held by Equifax and Experian which was

a default entered by CL and after 6 years was removed and replaced with an entry of ''arrangement to pay''.

 

I have taken advice on this matter and have obtained information from the Information Commissioners Office they

have stated that the Default entry should not be replaced by an ''arrangement to pay'' entry as this places

me at disadvantage as the removal of the default after 6 years should end ALL reporting to credit reference

files.

 

I now require you to remove this entry from ALL credit reference agency files immediately, the ICO advises that failure to do

so is a matter that they will take action on, you will therefore confirm to me in writting within 5 (FIVE) days of the date hereon

that you have taken the action required, failure to comply WILL result in a formal complaint to the ICO without further reference

to CL Finance.

 

Furthermore I shal seek cpmpensation from CL for the effect this has had on my credit profile.

 

Send recorded delivery, with a screen print of the CRA entries.

Copy in the data controllers of the CRA normal post with proof of posting.

[davedru]

Sorry I haven't been back for a while....

 

. The letter was very much appreciated BRIGADIER2JCS.

 

The letter was sent (recorded) to C L Finance and also, as advised, to Experian and Equifax on the 22nd October.

 

I received confirmation of my query from Equifax on 28th Oct but have heard nothing from Experian.

 

I received a letter from 'the lewis group', dated 25th Oct, re my C L Finance account stating that my complaint had been logged

and would be dealt with persuant to their ISO 9001:2008 accreditated complaints procedure...

...we are investigating these issues...

..we will issue our formal response to you upon completion of these enquiries...

 

.. I have received nothing further from C L Finance, or the lewis group,

but have today received an email from Equifax advising of an update.

 

A reponse was made to Equifax on 29th Oct stating that 'the record is correct as the customer defaulted with Santander before we bought the account.

This record will stay until December 2013.

We bought the account June 2007.'

 

I have yet to receive a reponse from C L Finance directly and have heard nothing from Experian.

 

What is my next step?

 

Without access to my 'alerts', as mentioned ealier in this thread, how can I prove that the status changed from defaulted??

 

DD

[dx100uk]

but why/who has changed the account from a default to 'AP'

 

if they are not shown as the OWNER of the debt

they have no authority to change what is shown on your credit file!

 

ask the cra 'who' changed all te entries to 'AP' and removed the defaulted date

 

i'd also include copies of every DN you have received

 

dx

[BRIGADIER2JCS]

I stand by my letter and the answer given in post 15, the ICO says this should not happen, so an urgent report to the ICO, enclose copies of correspondence between the parties and screen shots of credit reference files for evdence.

Also you can get advice on the phone from the ICO if you want.

[ken100464]

CL Finance are well known for this so keep at them they are trying to keep your debt alive.

 

As long as you have the DN recorded you will be fine. However they have a nasty practice of removing the date and you are left with AP's or red 6's. All totally wrong without the default.

 

I have just had very same thing with them on a Debs Card which they have just corrected. But you have to be persistant and as already advised get a complaint into the ICO.

 

They will fob you off until you do.