3rd Party DCA Reporting Default

[the worm that turned]

Hello All - I hope you can offer some thoughts on the below please.

 

I had a reasonably large CC debt with a large organisation and challenged the validity of their paperwork etc approximately 7 years ago. There was lots of correspondence between us but eventually the marked it as defaulted (soon to be 6 year anniversary of default).

 

I made an offer to settle with original lender via 5 equal monthly payments for approx 12% of original alleged debt. This took the form of an offer in writing and with a cheque for the first payment stapled to the offer. They removed the cheque and cashed it and subsequently did the same for the next 4 cheques all attached to covering letters referring to the offer.

 

Once all 5 payments were made I wrote to the CC organisation and confirmed that the account was settled and asked for them to stop reporting derogatory information with CRAs and mark account as settled. Instead they attempted to wash their hands of the account and sold it to a 3rd party.

 

I have made it very clear to the 3rd party that I do not recognise them and have no contract with them. I have heard nothing from them in approx 5 years but they continue to report a Default against me with all CRAs and are severely limiting my chances of gaining a remortgage at a competitive rate or at all and as you can imagine my credit rating has been badly affected.

 

So on to my questions at last!

 

1) when must the 3rd party stop reporting the Default, is it 6 years from the Default date or 6 years from any payment last received by the original lender? NB the 6 years from Default will end within 2 months and 6years from last payment within 8 months from now.

2) when the Default is over 6 years and they must stop reporting do all entries of it disappear or do they get removed one at a time month by month (I.e. Will there still be more recent Default entries present on credit file)?

3) in light of the above could the original lender get in hot water for selling a settled alleged debt and/or the 3rd party for attempting to collect on the same whilst reporting Default? If so what route would be best, FOS or court or both?

 

If you need further details please ask.

 

I look forward to hearing your thoughts! Thanks in advance

[unclebulgaria67]

It will come off your record on 6th anniversary of default date. If there has not been 6 clear years since your last payment towards this debt, the new debt owner can still take you to court to obtain a CCJ, but must do so within 6 years of last payment due to limitations act.

 

Sounds like the original lender did not accept reduced settlement. Just sending letter and cheques does not mean acceptance. They can sell the remaining debt on to a third party. The third party can take over rights of the debt under Law of Property Act. But the default date should be same as original creditor. The new debt owner will take over the default on your credit record reporting the default in their name.

 

What you have to remember is that Banks have millions of debts and they just chase them using automated systems. They don't get too involved in correspondence, apart from collecting payments received. If after a period a debt still remains, then they just sell them onto debt buyers and the new debt owner has the full legal rights to pursue payment of the debt in full.

 

I can't see that you have reason for complaint, other that the original Bank creditor not dealing with your repayment proposal. They should have rejected your settlement offer and told you what the score was.

[the worm that turned]

Thanks for your input Uncle B. I just want to clarify a few points on what you have said.

 

Is it 6 clear years from last payment to 3rd party or to original lender? Do you have a reference to such information i.e. is it in the statute you refer to (Limitations Act 1980)?

 

As to the following:

 

Sounds like the original lender did not accept reduced settlement...They should have rejected your settlement offer and told you what the score was.

 

That is a bit of a contradiction there. If they didn't reject the settlement offer (and bear in mind they had 5 opportunities to do so but in each case physically removed a stapled cheque) then they must have accepted it. Actions speak louder than words, and as far as I am aware, the acceptance of an offer and formation of a contract does not need to be written. This of course would be down to a judge to decide upon if necessary.

 

Personally, I don't really care how much correspondence a bank deals with, just how they act upon my correspondence.

 

I recall hearing or reading something in the past whereby a financial institution can deal with payments received slightly differently when an account is in default, however I would like to see some case law on this if it exists. Does anyone know of any that may be relevant here?

 

Many thanks again - TWTT

[dx100uk]

didn't matter if you paid it or not

the default is there for 6yrs regardless. then the complete account vanishes never to return.

 

 

dx

[the worm that turned]

Thanks dx100uk.

 

BTW I never received a Notice of Assignment, which I assume should have come from the 3rd party upon when they claim it was assigned to them by the original lender. Is there a time limit for the provision of a NoA? I suppose I could carry out a SAR but why stir up a hornets nest when the Default will drop off very soon.

 

So therefore I assume the only outstanding point then is as to whether they 3rd party feels they have a claim to the alleged debt and if so will have approx 8 months to do something about it before it becomes statute barred.

[dx100uk]

id deal with that when/if they issue a claimform

no good speculating now

it wouldn't prevent a claimform anyway

[the worm that turned]

Thanks again - and yes I agree. I will wait and see what transpires. Looking through my correspondence I can see that they (3rd party) tried it on again late 2014 and early in 2015 and I made it EXTREMELY clear that no contract exists and denied all claims they made and explained that all future correspondence will be RTS. Nada since in over 2 years.

 

Do you happen to know the timeline for provision of NoA? I would like to know to satisfy my own curiosity.

[dx100uk]

usually sent upon sale of the debt by the OC.

 

 

can be sent by either on behalf of both parties