SLC have registered a default notice for a statute barred debt

[Stanley 10]

I need very urgent help on a pre-1998 loan. In August 08 I was contacted by Credit solutions requesting payment of a student loan dating back to 1995. I wrote to them and advised the debt was statute barred. In Sept 08 I received a letter from the SLC requesting payment and threatening that a default notice would be placed on my credit file if I refused. I again stated that the debt was not due and owing and had been statute barred for some time.

 

For a period of 3/4 months after this I received continual telephone calls from SLC (sometimes 3/4 a day). I called them and asked them to refrain from this. After 2/3 calls back to them they finally stopped when I demanded that they remove my telephone number from their system. I heard nothing further for 6 months.

 

Last week I contacted my building society to daw down a mortgage which I had arranged in August 09. They carried out a routine credit check and contacted my to say that the offer of a mortgage was withdrawn due to advice from Experian in relation to my credit worthiness. Apparently a material change in my circumstances.

 

On looking at my experian report it appears that SLC registered a default stating that the last instance of default occurred in 2008.

 

I called SLC and told them the debt was statute barred and the default was incorrect. They said they had taken legal advice and while it was acknowledged the debt was statutebarred they were not prepared to write it off and were within their rights to register a default.

 

This default notice will prevent me getting credit for the next 6 years. It is clear that there was no default in 2006 and notwithstanding my threats to sue for damages as a result of my mortgage offer being withdrawn SLC are refusing to withdraw the default. EVen if I pay up this will stay on my file for the next 6 years.

 

Do you have any advice?

[fermi]

Their legal advice is very dodgy.

 

http://www.ico.gov.uk/upload/documents/library/data_protection/detailed_specialist_guides/default_tgn_version_v3%20%20doc.pdf

 

Time framework

 

Although there will be some flexibility in the definition of a breakdown, we believe there should be general rules for the minimum period of arrears which should exist before a default can be filed. Equally there should be a maximum period after which, if anything is to be recorded with a credit reference agency, a default must be filed. The following are in line with the practices currently adopted by most lenders.

 

• Accounts should not be routinely filed as being in default where full payments or those due under a rescheduled agreement are fewer than three consecutive months in arrears.

• Accounts should normally be filed as being in default where those payments due have not been received for six months.

 

This time framework only relates to filing defaults. It does not affect the lenders’ ability to continue to report accurately on the extent of arrears using monthly status codes. We recognise that may not always be appropriate for products which advance credit over either a very short or very long-term.

[Stanley 10]

Thanks I presume all I can do is make a complaint to the ICO and hope the result is favourable. Any other avenues?

[kurvaface]

Do you have a complete picture of your dealings with the slc? For example, have they provided a clear and legible copy of a signed cca? Have you done a Data subject access request? If no clear and legible cca comes to light, I would complain to the reference agencies and ask them to rectify their info.

[postggj]

stanley

 

how do ou fancy a grand compensation

 

do you have any correspondants stating its statute barred, replies, etc

 

whats the date of the default on your credit file

 

forget about cca/sar request

 

its statute barred and well over six years

[postggj]

check back tonight and ill post a letter for you to send these cretins

 

its time to get tough

 

did they send you a default notice

[kurvaface]

stanley

 

how do ou fancy a grand compensation

 

do you have any correspondants stating its statute barred, replies, etc

 

whats the date of the default on your credit file

 

forget about cca/sar request

 

its statute barred and well over six years

 

I would still cca them or dsar them. There has been talk of them defaulting statute barred accounts for a while now. Surely they would be in bigger breach of regulations if they were not defaulting statute barred accounts, but defaulting accounts that have no valid cca?

[Stanley 10]

Thanks for the advice so far.

 

The background is fairly clear:

 

1999 - I believe I paid a small amount off the debt and then went abroad.

 

2000 - The SLC contacted my parents and were told I was overseas. As a result they put the file into abeyance.

 

2003 - SLC implemented a search for me but say they could not establish a current address. (I actually owned property at that stage so they were obviously not doing a rigorous search.)

 

August 2008 - my first contact from the SLC since the call to my parents in 2000. In fact this was a demand for payment by Credit Solutions.

 

Sept 2008 - I wrote a standard response saying that I did not acknowledge any sums were due and owing and pointed out that the debt was statute barred. I also said that any ongoing attempts to enforce this debt could amount to harrassment.

 

Sept 2008 - I was sent an invoice from SLC showing a payment due within 7 days. I wrote back to say the debt was disputed and statute barred.

 

Oct 08 to March 09 - sporadic telephone calls to chase for payment. Eventually I asked that they remove my number from their system

 

June 09 - received a letter threatening to put a default notice on my credit file. I did nothing with this.

 

14 Nov 09 - default notice placed on my credit file (no further warnings). I only discovered this when trying to draw down my mortgage offer. The report showed a default entered by SLC. This gave a "last delinquent date" of September 2008. It also showed a start date in 1992 and one entry in the payment history showing a default in August 2008 (nothing prior to or after this). Strangely it also stated that there were 0 payments in arrears!

 

4 December 09 - SLC informed me that they were very comfortable that they were acting properly and in accordance with the criteria set down by credit reference agencies in registering the debt as being in default. They said the issue had been referred to their company secretary and legal adviser. They said the fact it was statute barred did not mean the debt did not exist and they weren't interested in enforcement. They said that under the terms of my CCA I had agreed they could pass on default information to credit reference organisations. I requested a copy of the CCA and they agreed to supply it. This will take 2 weeks apparently.

 

7 December 09 - Contacted the credit reference agency who said they did not agree with the SLC that it was acting properly in registering a default notice on a statute barred debt. They expedited the query and are taking it up direct with SLC as a matter of urgency. SLC still have 3 weeks to respond.

 

7 December 09 - sent SLC a letter similiar to the standard one on the system about enforcement of a statute barred claim and ICO guidance on registering a default notice within 6 months of default. (When I mentioned this guidance to the SLC they said they were acting in accordance with credit reference agency guidelines and these guidelines including in relation to statute barred claims had been agreed by the ICO).

 

On the basis of what you have said should I now request the CAC again in writing. I was told my call had been recorded. Presumably this will be a document signed by me so that I can assess its authenticity.

 

I hope this detail helps. For me the major concern is actually getting the default off the file in the next few days to avoid losing my mortgage offer. On a without prejudice basis SLC refused to withdraw the default even if I paid in full (apparently they can only put a note on that the debt is satified which will not help me).

 

Thanks again

[Stanley 10]

Does anyone know if the pre-1998 CAC used by the student loan company does contain wording allowing them to share information with credit reference agencies? I don't have my original copy.

[postggj]

Ive Checked And The Answer Is No

 

You Are Totally Correct

[kurvaface]

They said that under the terms of my CCA I had agreed they could pass on default information to credit reference organisations

 

This is why you need to do an SAR or CCA request. I understand that ccas from this era are copied onto microfiche (not sure of spelling) and that original docs have been destroyed. There is every possibility that they have no copy of a document (as opposed to a copy of microfiche) with your sig that permits them to default you. What do you think postggj?

[fermi]

Does anyone know if the pre-1998 CAC used by the student loan company does contain wording allowing them to share information with credit reference agencies? I don't have my original copy.

 

Some of them do. This is from one I have seen.

 

[postggj]

Thats The First Ive Seen

 

Whats The Date On That Agreement

[fermi]

Thats The First Ive Seen

 

Whats The Date On That Agreement

 

1998

 

I don't have copies of my earlier ones at the moment, so can't say if they were the same.

[postggj]

1998 Was The Change Over

 

After That The Debts Are Not Statute Barred

[fermi]

1998 Was The Change Over

 

After That The Debts Are Not Statute Barred

 

You mean agreements under the CCA197 surely?

 

BTW, they did actually issue the old type loans to continuing students after 1998. It was freshly start students that went on the the new style ones.

[postggj]

Stand Corrected From Your Advice

 

Never Having A Student Loan I Bow To Your First Hand Knowledge

[Stanley 10]

Thanks - how do I know if they have taken a copy from a microfiche rather than an original document and why is this fatal?

[kurvaface]

I have read on here somewhere that there are issues surrounding the enforcability of copies of microfiches as opposed to copies of original signed docs - something along the lines of in court the person who made the microfiche would have to certify that the copies of the docs are authentic and I suspect that 15 years down the road slc may have some probs with this.

 

How do you know which is which? : ask, do a dsar or cca request.

[Stanley 10]

stanley

 

how do ou fancy a grand compensation

 

do you have any correspondants stating its statute barred, replies, etc

 

whats the date of the default on your credit file

 

forget about cca/sar request

 

its statute barred and well over six years

 

Can they put a default notice on my file if the debt is statute barred? If so, is there anything they are obliged to say about the fact the debt was unenforceable at the time it was placed into default? Assuming I can get confirmation in writing that the debt is statute barred how do you think I should proceed. I thought the ICO would be best.

[kurvaface]

SLC will not give you confirmation the debt is time barred.

 

DSAR will provide the only source of proof that you haven't paid into or acknowledged the account.

[noomill060]

SLC will never admit they are in the wrong.

 

Writing letters to them is a waste of time.

 

The only way to have this removed is by you taking legal action. You can do this by a small claim for an order to remove this Statute Barred debt default notice and a sum in damages to recompense you for their defamatation.

 

They had 6 years from Accrual of Action (when they first had the legal right to take action against you) Whether they did or not is irrelvant)

 

They cannot simply extend this time by defaulting you 10 years later.

Edited December 8, 2009 by noomill060

[stawbelly]

Any updates on this situation?

[Stanley 10]

I recived the reply below from the credit reference agency today:

 

"Student Loans Company have correctly Registered this account, the Customer deferred and made payments to the loan until March 2000.

The account went into Trace between March 2000 and September 2008, where SLC sent the account to in-house and external tracing agents. A new address was located for the customer in September 2008.

The customer was then in contact with SLC and requested that account be statute barred. The customer has been advised that although the account is now Statute barred the debt is still due and monies remain unpaid."

[kurvaface]

Have you done a DSAR?

 

If not do one.

 

They will probably be unable to produce an enforceable CCA, at best an Illegible copy of an unsigned agreement. It will also confirm your account is time barred. ( I believe that they are meant to place the default on your credit file at or near the time of default, not 8 years later!!!)

 

Once you recieve this, point this out to SLC. Ask them to cease processing your data.

 

Get in touch with ref agency and point out that SLC are acting on no basis and to rectify your record immediately or face the consequences (which I think have been discussed earlier)