mmile threatening to register default on debt I have no record of

[needing_help]

Hi

 

I have received a number of emails recently from MotorMile Finance claiming an outstanding balance on a payday loan (Pounds Till Payday). I have no record of any outstanding debt but don't have records going back to 2008 to check the validity of what they are claiming.

 

I have no record of any defaults or accounts for Pounds Til Payday on any of my credit files so am not sure how to proceed. When I asked for further information they gave me the following:

 

Loan Information

Lenders ref: XXXXXXX

Loan open date: 26.11.2008

Original due date: 24.12.2008

Original loan principal amount: £800.00

Loan fixed interest: £239.84

Additional refinance fee/ default interest: £0.00

Failed direct debit fees/ collections charges: £59.00

Amount Paid: £576.94

 

This could all well be true but I have no records of outstanding debt or any records (let alone defaults) from Pounds Til Payday on any of the 3 reference agencies.

 

Mmile claim to have purchased the debt and sent an email stating their NOTICE OF LEGAL ASSIGNMENT:

 

Our Ref: MXXXXXX

Pounds Till Payday - Payday Loan

Debt Value: £521.90

 

We hereby give you formal notice of legal assignment for the above debt.

Your debt has been assigned to MotorMile Finance UK Limited (MMF) from Pounds Till Payday - Payday Loan.

 

MMF is now the legal owner of the account.

 

All default interest and collection charges have been frozen from your account for 7 days. If the account remains unpaid after this time, we will add default interest to the balance which will significantly increase the debt.

 

Call NOW to benefit from this offer.

 

Please contact us as a matter of urgency to resolve this matter, where one of our operatives will be happy to assist in finding you a solution:

 

Tel 0808 168 6908

Please quote your reference MXXXXXX

 

This matter is not going to go away and we need to discuss how to resolve the matter before your account is passed to our Home Visit Department.

 

We look forward to hearing from you.

 

Yours faithfully,

 

Doorstep Collections Dept

MotorMile Finance UK Ltd.

 

I was considering a Subject Access Request to get as much information held as possible but my primary concern is the latest email which threatens to register a default on all 3 agencies against this supposed debt.

 

Can a default be applied against a debt that has been purchased by a DCA? (assuming the Notice of Legal Assignment email is legit)

 

Email below:

Our Ref: MXXXXXX

Pounds Till Payday - Payday Loan

Debt Value: £521.90

 

Your file has now been passed to the Home Visit Department and a Doorstep Collection Agent will shortly be instructed to attend your property.

 

The default will be registered with all 3 credit reference agencies in our month end report.

 

If you wish to prevent this registration, contact us to accept one of the following offers:

 

- Payment of the debt over monthly instalments.

 

- A substantially discounted payment in full and final settlement of the debt.

 

Contact us NOW before it is TOO LATE: 0113 887 3869.

 

If we do not hear from you the default will be registered at Experian, Equifax and CallCredit and this will make it difficult for you to obtain credit now and for 6 years.

 

Yours faithfully,

 

Doorstep Collections Dept

MotorMile Finance UK Ltd.

 

Any advice on how to proceed would be welcome! I do not want unwarranted defaults appearing on credit file

[renegadeimp]

MMF cannot add a default to your file unless the OC has already added one. However, MMF will lie and say they are allowed, purely to threaten you into paying.

[Ocelot0411]

PLEASE stop giving incorrect advice to people. They can and they will register the default if they own the account.

[citizenB]

I think perhaps you should send them the "prove it" letter which you will find in the CAG library - linked in green - top left of the screen.

 

If there is no debt and they inappropriately mark your credit files, then you will be able to take action against them through the court.

[renegadeimp]

PLEASE stop giving incorrect advice to people. They can and they will register the default if they own the account.

 

Im not going to argue but suffice to say MMF cant, they know it and they DONT add a default if one isnt already there.

[renegadeimp]

I think perhaps you should send them the "prove it" letter which you will find in the CAG library - linked in green - top left of the screen.

 

If there is no debt and they inappropriately mark your credit files, then you will be able to take action against them through the court.

 

Normally i would agree with CB, but with MMF, you need to be very careful about what you do. We already know their tactics, their threat 'procedures', but the borderline blackmail of one of our regular posters here. You can send the prove it letter, but be aware that MMF will disregard it, or come up with a full page of junk to try and justify what they are doing.

 

It also seems that since Rob Sands has 'allegedly' left MMF, they seem to have stepped up a gear in regards to chasing people.

[Ocelot0411]

Im not going to argue but suffice to say MMF cant, they know it and they DONT add a default if one isnt already there.

 

And now you can see from various other posts that they can and they do.

[silverfox1961]

Can we take a step back please as this thread might just go off on a tangent which does the OP no good at all.

 

As far as my understanding of defaults go, before a debt is sold to a DCA it has to be defaulted by the debtor. When the new owner takes over the account, they can then replace the original name of the debt owner with their own but the date of the default has to stay the same.

 

If a debtor is in an arrangement to pay then there is no need to file a default but if the debtor fails to maintain the agreement then a default would be placed with no notice needed.

 

If a debtor is making token payments, a default is placed with no notice required.

 

 

As for MMF, this debt is from 2008. The Information Commissioner states that all defaults should be placed as soon as practicable and certainly within 6 months of the first missed payment (although some creditors push this a little). If they were to try and place a default, this can be challenged for the reasons

 

a) this debt does not belong to the OP

b) it is way out of time

[Ocelot0411]

Depends what you mean by ‘defaulted’ I assume you are referring to the recording of defaults with CRA’s rather than legal default under the CCA. The two are entirely separate. There is no requirement for a default to be recorded on a credit file before it is sold. There is in fact no requirement for it to be recorded on credit file at all. This is a commercial decision by whoever legally owns the account at the time. Yes the new owner can change the name of the owner of the account to their name or the Original Creditor can mark it as sold and settled and the new owner can put a new account on the credit file as long as it is clear that this is for the same debt and the default date is the same (so same account number would suffice as showing it’s the same debt).With regards to notice, again we are not talking CCA here so notice is recommended in the ICO guidance but not legally required for CRA purposes (although you may be able to prove unfair processing under the DPA). The 6 month default recording you refer to is guidance only and not law, bottom line is if it’s accurate they will likely get away with it, especially seeing as they have bought the debt several years down the line and their commercial practices are different to the original creditor. Can be challenged definitely on the grounds that a) it does not belong to OP – its inaccurate and therefore unlawful under the DPA b) cannot be legally challenged there is no legal cause of action, its a breach of ICO guidance and nothing more. ICO is unlikely to do anything about it (they don’t do much about anything). You will also note that the ICO guidance which you are relying on here has been removed from the ICO website which should give you a fair idea of how likely any argument that a firm is in breach of it will be upheld by the ICO. They clearly don’t want / intend to enforce it.