Loan not on credit file

[Glavey25]

Hi,

 

I need some advice. I took out a barclays staff loan in 2008 over the phone. No credit agreement was signed and i recieved no paperwork. I am now getting made redundant and have to pay the loan back. Looking into my options I have found out that the loan is not on my credit file. Does anyone know what this means?

[Glavey25]

Hi,

 

I need some advice. I took out a barclays staff loan in 2008 over the phone. No credit agreement was signed and i recieved no paperwork. I am now getting made redundant and have to pay the loan back. Looking into my options I have found out that the loan is not on my credit file. Does anyone know what this means?

[cerberusalert]

In the absence of a written agreement they do not have your permission for them to process your data and that also means sharing it with credit reference agencies.

 

After saying that, the only way you can be sure is to check with all three main CRAs.

[Glavey25]

I think I just checked experian. What would happen if i defaulted on the loan? Obviously i would not want to but im worried. Im going to have no income and my redundancy will not cover the debt.

[cerberusalert]

In the absence of an agreement they cannot take any enforcement. They can't prove a debt exists, they don't have your permission to process your data & if they were to mark your CRA file you could sue them to remove it. See; Knocked back by a DCA on a Sec 10 notice? - The Consumer Forums

[Glavey25]

Thank you so much, I am abit new to this site and I am not quite sure what all the legislations really mean. I have had a look at the link you sent me but I dont know which part applies to me?

What course of action should I take?

[cerberusalert]

You don't have to take any action unless they place a default on your credit file, the link I gave explains a method to try and get them to remove it if they do.

[thunderstorm80]

I have had a credit card for years. The bank never provided info about the account to any CRA. This is what got me suspicious ang got digging for the CCA. The bank admitted not having one. I remember applying for a current account in the branch. Towards the end of the form there was a tick box of whether I wanted the full package which included a credit card. I did not tick it, but when I got home I got a phonecall from the branch staff who offered to tick it for me so I could get the full package. I suppose they have targets to sell so much every month. I said yes. I am pretty sure there were no terms in the application form. I am pretty sure this is why the agrrement/appilication form has now disappeared and the account activity never reported to CRA.

 

The account is not defaulted but I am sure it will be when I place the account in dispute and stop making payments.

 

From my experience: lack of an account marker means => CCA problem

[Glavey25]

how are you going to place the account in dispute? Do you think if I stopped making payments and placed the account in dispute I could have the debt written off as there is no credit agreement? They have recently changed the conditions for new applications for a staff loan, this now includes a signed agreement. when I rang to query my terms and conditions (which I never recieved) they said it was because of the CCA. Really sounds suspicious to me.

[thunderstorm80]

s.127(3) of CCA 1974: without a document containing the prescribed terms and your signature, the court cannot order enforcement.

 

How will they enforce without such an agreement/document?

 

Eventually ,after threatening and passing to DCA's etc (and perhaps taking it to court, which you can defend) they would have to write it off for tax relief.

 

If you have financial problems you will most probably get defaulted if you go on a reduced payment plan. Since they will default you anyway, why would you pay them the little money that you have for a non existent credit agreement? I would not.

[Guest Old_andrew2018]

Well you have not defaulted, so its not shown on you credit report, can you not arrange some repayment plan.

 

Andy

[rickyd]

no signatures and no paperwork - how can they prove it actually exists especially if there's no record on your credit file?

[borisbeaver]

I had one of these. Just arranged over the phone. No paperwork no-nothing. When they made me redundant, they converted it into a normal loan. I had financial problems at the time and defaulted on it. That was 8 years ago and have not paid a penny back to them. It's now statued barred.

[rickyd]

same bank?

[borisbeaver]

Oh yes! You could call them for a loan or an overdraft and would normally be agreed straight away. You never got any paper work, or an agreement to sign.

 

When you leave, they convert it from a staff loan to a personal loan and you start repayments.

 

I've had a few letters from Crapbot, but as it is statute barred, I use them to line the cat's litter tray. Now that is taking the p**s.

[rickyd]

That's brilliant. I wish my bank did that, I'd love a loan for which I'd not signed anything.

 

I'd love to see them prove that I asked for it as I would insist I thought it was a gift or bonus for being a wonderful customer and see it as a way of making up for the dreadful drop in share value caused by Fred "nothing to do with me" godwit!

 

Presumably you have to sign something to get the staff loan converted into a personal loan? What happens if you don't?

[borisbeaver]

Nope, as part of the employment termination process, they look at staff loans and convert it automatically. It's a new "agreement", but you still don't have to sign anything.

[maroondevo52]

Do you think I could get a job there

[borisbeaver]

Believe me, you don't want to work for Braclays! They'll run you into the ground then get rid of you.

[Glavey25]

hay,

 

I have looked a bit further into it. The loan itself is excluded in the CCA because it was not avaliable to the general public. Im thinking if i cancel the direct debit and refuse to pay them as I now have no income (because they have made me redundant) the default can not show on my credit file as it was not on their in the first place. But if they do default me I can sue as I have not signed a credit agreement for them to share my information.

All im worried about is them taking me to court.

[Glavey25]

I have learned today that this loan is NOT covered by the cca as it was not avaliable to the general public (even though its exactly the same)

Am I right in saying that if I default on this loan it can not show on my credit file as they do not have a document containing my signature allowing them to share my info with cra?

What do you think would happen if they take me to court? As it is not covered by the cca?

[Laurel&Hardy]

hay,

 

I have looked a bit further into it. The loan itself is excluded in the CCA because it was not avaliable to the general public. Im thinking if i cancel the direct debit and refuse to pay them as I now have no income (because they have made me redundant) the default can not show on my credit file as it was not on their in the first place. But if they do default me I can sue as I have not signed a credit agreement for them to share my information.

All im worried about is them taking me to court.

 

To be fair, if you have borrowed the money you should pay it back, not try to run off. I know that many lenders get back stacks more money than they gave out, and I disagree with many of their policies & tactics, but if I lent someone money I would want it back.

 

On the flip side, if we all refused to pay back what we borrowed, then many more people would end up in the same position as you, and that is redundant.

 

I am not trying to preach to you good vs bad etc, so please don't take it personally, but if you can't pay it back because they have made you redundant, then try and work out some agreement first, because I feel that if you do play dumb and pretend that you never took out a loan because they can't prove it, I suspect you will end up in court and might even end up in a much worse situation? i.e. fraud?

 

Just my 2pc mate, nothing personal.

[yourbank]

I have learned today that this loan is NOT covered by the cca as it was not avaliable to the general public (even though its exactly the same)

Am I right in saying that if I default on this loan it can not show on my credit file as they do not have a document containing my signature allowing them to share my info with cra?

What do you think would happen if they take me to court? As it is not covered by the cca?

What legislation is it covered by then since a loan is covered under the Consumer Credit Act?

Are they saying it isn't a loan?

[cerberusalert]

AFAIK the only loans that are unregulated are those over £25,000 at the time you took that out (£50,000 now).

[Glavey25]

I went to the CAB they checked the CCA and if the loan was not avaliable to the general public then it is not covered (even though its exactly the same as a normal loan just slightly lower apr rate for the time i took it out)