First post here but long been an observer.
Had an account with Lending Stream which due to financial difficulty defaulted in April 2011.
Motormile finance purchased the debt from Lending Stream in 2013, and I entered dialogue with Motormile as soon as I received correspondence from them.
I requested a full statement of account and a copy of the default notice, as no default notice was received from Lending Stream.
After hearing nothing back for over 2 months,
I chased Motormile who reluctantly admitted they were unable to obtain this information from Lending Stream.
The balance (including a high proportion of default fees, late payment fees etc) was £782,
Motormile offered to settle for £250.
I agreed this on the condition that the default notice would be removed,
as they were unable to show a statement of account or a default notice had been sent,
and Barry from Motormile called me a couple of days later to confirm he'd spoken with Lending Stream and they'd removed the default.
I paid in full via card £250 over the phone after receiving email confirmation from Motormile the default was being removed (see below).
"Email: Good Afternoon Mr *,
I can confirm that we have previous received confirmation from Lending Stream that they would update your credit file for the data they have shared.
I understand from our early conversation that this has now been updated accordingly.
Should you have any further concerns regarding this, please contact me again.
As requested, I shall arrange for our collections department to contact you to settle the account.
Customer Relations Manager
Motormile Finance UK Ltd (MMF)"
After being declined for credit, I checked my credit file in June 2015 to find that the default had been reappeared on the credit file, this time from Motormile Finance.
I queried this with Motormile immediately.
I was promised a response to my complaint within 14 days.
Over a month passed (chased every week), blaming Lending Stream.
Once I pointed out on multiple occasions that the default was from Motormile and not lending stream
I received a response saying my compaint was being investigated and I would receive a response within 28 days.
Sure enough, a month later, I received this response:
"Dear Mr *.
Thank you for your recent correspondence.
We understand your concerns to be that:
· We have requested the removal of the default from your credit file previously, however this has recently re-appeared.
· You have applied for a mortgage and the default applied by MMF is having a detrimental effect to your application.
We have investigated your complaint thoroughly and have provided a response to each concern individually below:
We have requested the removal of the default from your credit file previously, however this has recently re-appeared.
We have reviewed all correspondence on your account and have found that you have previously discussed your credit file with us in December 2013.
We would firstly like to make you aware that MMF did not record any data with the credit reference agencies at this period
and as such, never agreed to remove any information on your credit file.
Your correspondence with us in December 2013 was in regards to data that was shared on your credit file by Lending Stream.
In December 2013, we explained that as MMF has purchased the account,
we are legally obligated to take over any information on your credit file.
We are obligated to do this to provide an accurate reflection on a consumers credit history.
The default that was originally applied by Lending Stream should have been removed in August 2013
and updated to show that the account had been sold.
As a resolution to your concerns in December 2013,
Lending Stream confirmed to us that they had updated your credit file accordingly.
You have applied for a mortgage and the default applied by MMF is having a detrimental effect to your application.
We are sorry to hear that you feel this default is affecting your chances to obtain a mortgage.
We are obligated to report factual and up to date information on your credit file to provide an accurate reflection of your credit history.
Lending Stream have confirmed to us that a notice of default was sent your postal address (*) on 11 April 2011
and the account defaulted on 25 April 2011.
We have provided you with a copy of this documentation for your records.
As you were provided with a notice of default, we are unable to remove the information as the data is factually correct.
We hope this response has brought the matter to an acceptable resolution and the action taken is to your satisfaction.
However, this is our final response, if you remain unhappy with the response I have attached a link to the leaflet about the Financial Ombudsman Service (FOS).
Should you choose to contact them, you will need to do so within six months from the date of this email,
enclosing a copy of the final response, which they will need for their investigation.
If you would like a copy of this response by post including the leaflet please let me know by return email.
FOS Leaflet: -
Customer Relations Officer
Motormile Finance UK Ltd (MMF)"
The default reappeared in February 2015.
Originally this showed as a fresh default on this date, dropping off in February 2021,
but they have updated this to the actual date of the debt, dropping off in April 2017.
Removal of this default was essentially a term of me settling the debt (I refused to pay without this being part of the agreement),
at at no point was there an indication it could reappear.
On discussing this with Barry I was assured that this couldn't reappear,
completely contradictory to the claim in the response stating I was made aware of motormile legally obliged to taking over my credit data.
Motormile had 2 months to supply details of the default notice and statement of account back in 2013,
so now sending me a copy of the default notice after complaining in 2015, which was never received, seems ridiculous to me.
I issued a data access request last week of which I am awaiting an acknowledgement of receipt.
Where do I stand here? Do I have grounds to have this removed?
Motorfile seem firm on their stance, if I have a case would be happy to proceed with the court or FCO complaint, whichever I am more likely to obtain the outcome of removal.
I have applied for a mortgage on a dream home, most likely to come back as a decline next week solely due to this default.
Any advice would be much appreciated
Many thanks for your time - Lewis