Do agencies have to follow specific guidelines before entering a default?

[Kate987123]

Hi all,

 

I've posted about this an on-going DCA issue on the boards before and received some great advice but have been unable to resolve the matter. Basically, a DCA have been chasing me for a debt that has never exists, they can't tell me what the alleged debt is actually for but insist I owe it.

 

I've written numerous letters and it's bene going on for over a year but I'm not getting anywhere. The alleged default took place in 2009 but wasn't placed on my CRA file then. The latest DCA chasing payment placed the default on my file in 2011. I have contacted the CRA who simply contacted the DCA who have said they will remove it if I provide proof of previous payment but obviously I haven't made a payment because the debt doesn't exist!

 

Anyway, I'd like to know if there are any guidelines DCAs must follow to prove a debt exists prior to placing a default on your file? As the debt doesn't exist I can't believe they are able to do this

 

Any advice very gratefully received!

[Jamesx81x]

Unless they provide proof you owe the debt they should not be placing any information on your file, unfortunately the way the credit reference agencies work is they simply take the DCA's word for it that a default is legit their word seems to take precedence over actual proof, its wrong but its how they work.

 

Im guessing you have already requested they send you proof by way of agreement statements of accounts etc and they have failed to do so.

 

If it was me my next step would be write them a Letter Before Action stating clearly unless they remove the default from your file they have placed for a debt that does not exist or belong to you you will issue a county court claim against them for breach of the Data Protection Act. After all they are damaging your credit worthiness by placing this default that has nothing to do with you and they cannot even prove it does.

 

What i will say though is dont send it as an empty threat be prepared to actually issue the claim should they fail to act. You have given them plenty of notice and it is the last resort.

 

When it lands on their desk i will put money on it the default disappears as if by magic.

 

James

[BRIGADIER2JCS]

The DCAs are not registering a new deafult each time if a debt is sold or assigned the new owner or assignee must up date the credit files with their details the only thing that cannot change is the default date.

DCAs as such do not place defualts they inherit them from the original creditor and up date with their company details it is the creditor who has to be accurate in what is palced on the CRA files.

 

The DCA is acting on information provided as are the CRAs, so you need first to contact the data controller of the creditor and then place a notice of dispute on the CRA files.

[WorriedChappie]

may be the wrong thread but I have just checked my credit file to find a company called MK Rapid has registered two defaults against me.

 

I have never heard of this company or had any dealings with them!

 

I have complained to Experian and they have stated I need to contact this company as they claim the debt is correct, they have put a note on file stating I have disputed the debt but have refused to remove the default notice.

 

Could I use the information given above to try to get these removed off my credit file?

 

I need to get the default removed as I am applying for a mortgage early next year.

 

Any advice would be appreciated

[dpick]

The DCAs are not registering a new deafult each time if a debt is sold or assigned the new owner or assignee must up date the credit files with their details the only thing that cannot change is the default date.

DCAs as such do not place defualts they inherit them from the original creditor and up date with their company details it is the creditor who has to be accurate in what is palced on the CRA files.

 

The DCA is acting on information provided as are the CRAs, so you need first to contact the data controller of the creditor and then place a notice of dispute on the CRA files.

 

Hi Brig in an ideal world this should happen but it does not I have already had littlewoods put the same account on twice with experian both defaults were for different dates I had to report them to ICO to get one removed after Littlewoods refused to remove one of the defaults. This debt was then passed to DCA who again entered another default again with a different date and I had to go again to ICO.

 

dpick

[BRIGADIER2JCS]

may be the wrong thread but I have just checked my credit file to find a company called MK Rapid has registered two defaults against me.

 

I have never heard of this company or had any dealings with them!

 

I have complained to Experian and they have stated I need to contact this company as they claim the debt is correct, they have put a note on file stating I have disputed the debt but have refused to remove the default notice.

 

Could I use the information given above to try to get these removed off my credit file?

 

I need to get the default removed as I am applying for a mortgage early next year.

 

Any advice would be appreciated

The fact is just because you have not heard of the company is not reason for the entry to be removed, ask the CRA to place a notice of dispute on them.

 

You must write to the Data Controller at MK to find out what this refers to.

 

If you want a letter drafted let me know here, it must be carefully worded.

[WorriedChappie]

Experian have put a note of dispute on my file, if you could let me have a draft letter that would be greatly appreciated

 

thanks for your advice

 

WC

[BRIGADIER2JCS]

Hi, send this letter to the Data Controller

MK Rapid

 

Formal Complaint.Spurious Entries on Credit Reference files.

 

Ref:Credit File Entries

 

Dear Sir or Madam

 

I have recently checked my credit reference files held by Experian and have found entries made by MK Rapid these are defaulted accounts of which I have no knowledge, attached is a screen print of the entries filed.

Please take note I do NOT acknowledge any debt to MK Rapid or any compnay you may claim to represent.

 

At no time have I been contacted by any company regarding alleged debts, no default notice or notice of assignment has been received regarding any alleged debt.

 

I require a full explanation of the reason for these entries and removal of them until you prove unequivically that I have any liability for the alleged accounts.

 

Unless MK Rapid respond quicly an positively to my complaint I WILL report the matter to the Information Commissioners Office an Iam prepared to take any action necessary to have the spurious entries removed.

 

This letter is sent by Recorded Delivery receipt will be tracked.

[WorriedChappie]

thank you for the information will send this off over the weekend, will let you know the outcome.

 

once again thank you

 

WC

[BRIGADIER2JCS]

Your're welcome, good luck.

[WorriedChappie]

MKR have basically said I'm the correct person according to Experian. They have offered no explanation of what the debt is apart from the fact they have purchased the debt.

 

I feel I probably need to go down the Information Commissioners Office route would anyone have any information about how to proceed or know anyone who can act on my behalf?

[BRIGADIER2JCS]

Have you checked Experian for any anomallies?

[WorriedChappie]

I'm at a loss really. Experian have put a comment stating the debt is disputed which is basically useless according to my financial advisor.

 

There is no information either from Experian or MKR to identify this supposed debt!

[BRIGADIER2JCS]

A dispute entry is quite advantageous usually as it also states that prospective lenders dhould not make decisions based on the disputed entry, which is why I will always advives the data subject to place a dispute on files.

[WorriedChappie]

I had a meeting today with my financial advisor and we had some feedback from some lenders [as I'm about to start a self build project] and the general opinion is that its immaterial if there is a dispute as long as a default is in place you will not get any money.

 

The was confirmed by several other lenders, off the record so to speak!

[BRIGADIER2JCS]

I some think ''financial advisors'' tkae a pessimistic view of just about anything, from experience of assisting other in achieving ''credit worthiness'' the wording on a notice of dispute appended to an entry on CRA files IS taken notice of by potential lenders.

[WorriedChappie]

I was present at the time, the company representative advised me to get the defaults removed as they would definitely not lend in this instance although they had previously agreed verbally.

 

So need to get these removed by hook or crook. Will have to see what options are available

[BRIGADIER2JCS]

Challenges to defaults:

1. Placed unfairly.

2. Default sum consists of ''charges'' without which the acoount would not have been defaulted.

3.Default was placed late eg not with in 6 months od the cause of action as recommended in the ICO Technical Guidance on defaults.

4. The account was not properly defaulted DN flawed eg no time allowed to remedy.