Defaults added 4 years later!

[never shay die]

Hi CAG people. I would really appreciate any help with this one if someone is in the know!

 

The short story is that Northern Rock have waited 4 years to add a default to my credit file, thus buggering it up for a total of 10 years! A little bit more detail is probably required though:

 

I took out a £10k unsecured personal loan with Northern Rock in 2005 over a 5 year term. Around 2007/2008, I ran into financial difficulty and entered into a Debt Management Plan (not an IVA) with my various creditors. It was reviewed annually.

 

I didn't pay Northern Rock (or any of my other creditors) for 3 months whilst the DMP was negotiated. However since then I have not missed a payment and it is due to be paid off in a couple of months.

 

In the years after the DMP started, Northern Rock recorded against my credit file each month that my payment was 3 months in arrears. Then, out of the blue and for no apparent reason, in January 2012 finally recorded the account as in default. This will stay on my record until 2018!

 

This seems to me to be an abuse of the process. If Northern Rock wished to lodge a default, surely it should have been done in 2008 and should now be off my record?

 

I have read the ICO Principles and they seem to support me:

 

- As a general guide, (a default) may occur when you are 3 months in arrears, and normally by the time you are 6 months in arrears.

- There are exceptions to this which may result in a default being recorded at a later stage, such as secured or long term loans e.g. mortgages, or if the product operates in a more flexible way e.g. current accounts, student loans, home credit.

- If an arrangement is agreed, a default would not normally be registered unless the terms of that arrangement are broken.

 

I have tentatively raised the issue with Cabot Financial who now report the default on Northern Rock's behalf, but they have told me to take the issue up with Northern Rock.

 

Any advice on a) whether I have a case and b) the best way to go about this would be most helpful. Also, what remedies I might have (legal or regulatory) if Northern Rock play hardball on this.

 

Thanks so much guys!

[Ell-enn]

Although the default appeared in January 2012 - is there an actual date of account default in the information part of the report ? I have seen a default appear one year, but the actual default date was recorded as being a few years earlier, therefore only had a couple of years left on the credit report.

[never shay die]

Thanks for the quick reply.

 

The default date is definitely listed/recorded as January 2012.