hi,

ive up repayment plans with pay day lenders twice over this past 3 years due to a gambling problem.

Im currently doing pretty well with 5 months left - bar swift sterling,

most of the lenders were reasonably sympathetic in faciliating the plan.

Early Payday were one of the lenders with a very small loan of £250 which I was paying at £25 per month

and have increased to £37.50 per month.

I normally use equifax for my credit reports and noticed nothing adverse with any of the pay day lenders

- however this morning I have just checked my experian credit file and credit score

and see that Early Payday have put a default against my account.

The default amount is for £175 which is 3 months into my payment plan

I received no documentation from them on this and

am I right in thinking they should not be marking me as a default if I've made an arrangement with them

- I've noticed wonga have marked my status as Arrangement to Pay (AP)

Technically they can default you, as you didnt keep to the arranged plan. It is up to the lender whether they add the default or not. Some lenders normally just put late payment markers on the account.

The best way to find out what is going on, is to write to the PDL but address the letter to the "Data Controller" or "Compliance Manager".

Technically they can default you, as you didnt keep to the arranged plan. It is up to the lender whether they add the default or not. Some lenders normally just put late payment markers on the account.

 

The best way to find out what is going on, is to write to the PDL but address the letter to the "Data Controller" or "Compliance Manager".

I have kept to my repayment plan, paying each month since I set it up - are you referring to this or my original contract with them? What I dont understand if you are referring to the original loan I had with them is why they mark it as default 3 months after I entered a plan with them

I might have not made my self clear

When you fail to meet the original agreed repayment terms, technically you are in default, and can have it registered against you. The maximum amount of time normally allowed for a creditor to default a debtor is around 6 months from the action that caused it. However, many creditors allow debtors a few months grace period in order to rectify the situation and simply add late payment markers to the credit file. Some, as you rightly said, update the status of the account to a much more reasonable outcome.

We don't know whats happening behind the scenes of the PDL. It could be a simple error on their part, or they may have very strict terms. Regardless of what i say here, the best way for you to get it sorted, is to send a letter with as much detail as possible to the PDL, and address it directly to the Compliance officer or Data Controller. This is the only way to get the credit file sorted.

ah yeah understand it better now, sorry for any confusion and thanks for reply. Having sailed close to the wind a number of times, how bad is a default such as this on my credit file?. For example, I was hoping to look at some car finance to replace my old banger around christmas when I am clear with these repayments

A default is almost as bad as having a CCJ on your credit file. It affects it in the same way. You must contact the above people and demand the default is removed, and the status simply updated to arranged to pay or the equivalent.

If they were simply late payment markers, then it's not as bad and can be updated as such. With a default, it seriously affects your credit worthiness and remains on your file for 6 years.

should I have received an official default notice from them in order for this to be valid?

They dont have to give you one, but normally a notice of default is given, giving you a certain amount of time to rectify the problem before the default is recorded.

thanks again renagadeimp,

have emailed these evening along the lines of what you have advised

- as i said i have sailed close the wind financially over the years with my gambling problem

but much bigger debts have been dealt with in a much fairer basis with repayment plans etc.

It is a real setback having clawed myself out things to now having to worry about a 6 year default having over my head.

Lets see what they come back with. If they come back with a generic response, make a thread in the Credit record agencies forum and brig will be able to advise pretty much perfectly for you.

hi, started this thread in payday loans but renegade suggested i move here..

ve set up repayment plans with pay day lenders twice over this past 3 years due to a gambling problem. Im currently doing pretty well with 5 months left to clear them all - bar swift sterling, most of the lenders were reasonably sympathetic in faciliating repayment plans. Early Payday Ltd were one of the lenders with a very small loan of £250 which I was paying at £25 per month and have now increased to £37.50 per month to cleat. I normally use equifax for my credit reports and noticed nothing adverse with any of the pay day lenders - however this morning I have just checked my experian credit file and credit score and see that Early Payday have put a default against my account. The default amount is for £175 which is 3 months into my payment plan.I received no documentation from them on this and am I right in thinking they should not be marking me as a default if I've made an arrangement with them - I've noticed wonga have marked my status as Arrangement to Pay (AP)

correspondence to and from the company

FAO Compliance Office/Data Controllor,

Further to the email thread below and financial difficulties which have resulted in me setting up a repayment plan with yourselves, I have looked at my credit file through Experian and have noticed that my account with yourselves is marked as Defaulted/Deliquent with a status of '8' from 1st June 2012 despite the balance having reduced and an arrangement to pay being in place which I have kept to from March 2012. Iinitially it was marked as '2' which reflected late payment. As you will see, I have also increased my repayment to clear the balance quicker and stuck to this plan. Can you please advise if this is an accurate information being presented by yourselves or iis it late payment markers being reflected differently by experian?

Naturally the implications of having a default on my file for 6 years are catastrophic

- as I approached yourselves in good faith to set-up an arrangement,

I would ask you to remove the default and reflect the current arrangment more fairly

Please advise as how to progress

RESPONSE BELOW

Hi Stephen

You will need to contact Experian who will then contact us & we can get them to amend your report.

Is is accurate advice - when i look at the experian website, they advise asking the lender to contact them?

Hi acid53,

I was in a similar situation, not with EarlyPayday, but with a different PDL. In my case the PDL itself (after I asked them to review) contacted the CRA and changed the status from 'Default' to 'Payment arrangement' and I would think this is the normal way, as Experian itself cannot change it.

However, I would just give it a go and contact Experian, let them know the response you got from EarlyPayday, and ask them to contact EarlyPayday to request confirmation that this can be changed.

The email response from EarlyPayday you received basically indicates that they are willing to change it ("we can get them to amend your report") so why not just drop Experian an email?

Hope this helps.

Report the lender to the OFT and Trading Standards, THEY are the people who report TO Experian, not the other way round.

have went back to them with the advice that is in the online help section of experian advising that the company update experian (not the other way about) but taking it that implicit in their reply is that they are willing to sort it out which is promising

could anyone indicate whether the status show as late payment markers or actual default?

• Account Status Details
  (1-12 months)
  

Last updated: 01/07/2012

Status Code: Balance: £150£175£225£300£250

hi,

I entered into payment arrangements with money shop and paydayuk in feb this year

and agreed repayment plans over a 6 month and 12 month period respectively which I have honoured and,

due to receiving some some bonus money from work in May,

I was able to settle both accounts just after the three month period.

I checked my credit file today and noticed that money shop have registered a default bang-on the 90 day mark from my revised agreement.

As paydayuk are part of the same company group,

I am anticipating that they will do likewise especially as they stated in the payment arrangment

something like they reserve the right to record a default if the debt is over three months old

Am I right in thinking this contravenes the new ICO in Jan 2014 that a default should not be marked if a payment arrangement

is in place and being honoured (principles 3 and 4)?

In the case of the default information recorded on my Experian file,

it shows the incorrect balance and in one fell-swoop has jumped from status 2 to status 8 whilst showing it as satisfied

complained to moneyshop along the lines of thread above and they replied immediately indicating

they would update it to arrangement to pay instead.

however, when I checked credit report this morning, the entire moneyshop account has been deleted from experian which is great!

They did say they would update it to arrangement to pay instead.

Another general question

- for accounts that are a few months in arrears and marked as status 3 for 3 months late for example,

should these accounts be closed with the status indicating the arrears status or as satisfactory?

e.g. at the point of final payment of an account,

I assume it is back to satisfactory and up to-date.

I have only credit account from safeloans which stands out like a sore thumb showing as 3 months late even though I cleared it a year ago

complained to moneyshop along the lines of thread above and they replied immediately indicating they would update it to arrangement to pay instead. however, when I checked credit report this morning, the entire moneyshop account has been deleted from experian which is great! They did say they would update it to arrangement to pay instead.

 

Another general question - for accounts that are a few months in arrears and marked as status 3 for 3 months late for example, should these accounts be closed with the status indicating the arrears status or as satisfactory? e.g. at the point of final payment of an account, I assume it is back to satisfactory and up to-date. I have only credit account from safeloans which stands out like a sore thumb showing as 3 months late even though I cleared it a year ago

What you must remember is that the history of an account stays as a matter of record, showing exactly how the account has been conducted over time, this historical date remains for 6 years payment made or not,

Defaulted accounts are removed on the 6th anniversary of the default date paid or not, so as has been shown many times on the forums getting the entry amended to an arrangement to pay is not really the best prospect.

The AP will remain on record from the date it was put in place, often months or even years after a debt is defaulted thus prolonging the time it is shown on credit file.

You are stuck with it I'm afraid.

thanks for reply brigadier - yes, seen the recent thread about AP being as toxic as defaults and problem with the timescales. thats why i hope the account entry remains deleted. any thoughts on my second question about an account being settled that is show as 3 months late. At the point the account is settled is it not up-to-date?

thanks for reply brigadier - yes, seen the recent thread about AP being as toxic as defaults and problem with the timescales. thats why i hope the account entry remains deleted. any thoughts on my second question about an account being settled that is show as 3 months late. At the point the account is settled is it not up-to-date?

Yes indeed the account is brought up to date, the problem is that the "historic data" has to remain on the files to show that payments have been late in the past, this is now very difficult to challenge given the ICOs view on accurate historical reporting on the conduct of accounts.

thanks brig - yes appreciate with the historic entries that I am going to have to swallow my poison on it and I have no problems with that (have been battling a gambling problem for a number of years which has resulted in me taking numerous payday loans out). However, I would at least like these entries to reflect the most positive view of things as my credit score is very low and every bit helps

Do you think I have merit in contacting safeloans and requesting them to mark this account as satisfactory and not as 3 months late at the point that I settled it

The new ICO guidelines seem to enable some of the more trigger-happy payday lenders to register defaults exactly on 90 days irrespective of payment arrangements or not.

The account is up to date, it seems that just historical data is showing as it must.

I cannot see them amending this as in fact it was in arrears when settled, but you are of course free to ask.

yes it appears as settled - however should the status it not be marked as up-to-date at point of settlement when the final payment is made? All other accounts appear as satisfactory on my credit file at the point they were settled whereas this one remains settled but showing it three months late (despite me being in arrears with a number of them)

the attachment shows my payment sequence shows as following on my credit report. I am happy that it reflects the historic status of the account being 4 months in arrears at a point in time but assumed it would show as satisfactory at point it was settled

Hi,

In support of a complaint I have lodged with FOS about MoneyShop, I sent them a SAR based on the template in the library. In response to this, they have provided some information but also lots of things missing such as emails I had sent them, various phone calls and some account information missing. If I was being cynical, I'd guess they are not providing some of the info which would be detrimental to them but it just may be incompetence or bad record keeping.

Thankfully, in terms of emails, I have kept copies but am I right in thinking they should provide all data held about me to comply with the SAR?

thanks,