Barclays Default - Experian Credit Report

[championless]

Hi All

 

I was wondering if you could help me. My boyfriend and I are about to apply for a mortgage so i checked my credit report and a recent entry has been added. It relates to a Barclays loan showing as a default. I have previously requested a copy of a signed CCA which they did not provide. It is detailed in the link below:

 

http://www.consumeractiongroup.co.uk/forum/barclays-bank/216812-barclays-resolve-loan-2.html

 

I am now in the position where i have the account suddenly turn up on my credit report (previously this account had never been reported to a CRA. I've emailed Experian to ask them to remove it but just wondered if anyone has any suggestions, as i'd like to try and resolve this as soon as possible so i can get a mortgage.

 

Can i challenge Barclays on data protection grounds as opposed to unenforceability or is the only option to clear the debt somehow and have it showing as settled? Does a settled default account look bad to lenders? All other accounts on my record are perfect with not so much as a late payment.

 

Your help would be greatly appreciated.

 

Thanks

championless

[championless]

Do you think i'd have a chance with full & final settlement on the proviso that the default is removed?

[DebtSucks]

From what I understand and I'm pretty sure others can back me up on this. Defaults remain on your credit file for 6 years regardless of them being marked as satisfied. Unfortunately the very presence of a default on your credit file has substanial negative effects on your score for the duration of it being on your file.

 

The only hope you have is writing to Barclays to ask them to remove it but you will have to have valid grounds for them to do so. The fact they cant produce a CCA maybe an option. But dont expect any quick fix. It can take many months to force a company to remove a default from your file. All I can advice is be persistant and have a read of this link http://www.learnmoney.co.uk/credit-file/remove_default_notice.html

[Jamesx81x]

Debtsucks is right it will stay for 6 years, while a settled default is better than an unpaid one lenders view them exactly the same.

 

Was it a previous loan you had or something?

[championless]

Yeah it was a loan. Can I argue that the default was placed in error because my account was in dispute at the time? I know they don't have a copy of my original credit agreement but all they do is suggest I contact FOS. Will this do anything useful? They've told me they would only remove the default if it was put on in error. What can I do next?

[Jamesx81x]

Did you actually have a dispute in?

 

The following is taken from the lending code but only refers to the amount been owed been disputed, not disputed in general

 

35. Subscribers can give CRAs default information about a customer’s debts if:

• the customer has fallen behind with their payments

• the amount owed is not being disputed by the customer; and

• the customer has not made a proposal that satisfies the subscriber for repaying the debt following the subscriber’s formal demand

 

As for the CCA request, they cannot enforce the debt unless they take you to court but can record it with the CRA's and carry out collection activity if they wish.

 

I personally would start by SAR them which should include the agreement and alleged default notice.

[championless]

Thanks James, that's helpful.

 

I had a dispute in the fact that i requested a signed agreement and they would not provide one other than a blank one.

 

The CRA have come back to me today saying that Barclays will not remove the default. Barclays have also come back to me themselves following my offer of full & final settlement on the proviso that they remove the default and have suggested that they would only do so if it was added in error. Can i challenge it on me not receiving the default notice? Or if they provide proof it was sent, is that considered proof that i received it?

 

Or can i make a complaint to the information commissioners office, following the subject access request, that they do not have the right to process my data in such a way?

 

Just wondering what the next step is after the SAR?

 

Your help would be really appreciated.

 

Thanks

[Jamesx81x]

With regards to the CCA they are allowed to send you a copy of an agreement as long as it contains the same terms and conditions as the original. They have fulfilled their request by sending you this.

 

Like i said they cannot enforce the agreement unless they take you to court but can still register info with the CRA's.

 

The SAR will show everything they have on you and should include the default notice. If not you need to ask them where it as and request they send you a copy.

 

I have read various posts that courts have accepted templates of default notices and records of them been sent as proof but i disagree with this as you cannot identify if the default is perscribed correctly. Anyone can say they have sent something if there is no proof otherwise. I do not beleive the courts should accept hear say.

 

Try the SAR then take it from there. There is no quick fix and it takes time but can be worth it in the long run.

[championless]

They didn't register the account with any CRA. However, once they issued the default, the account suddenly registered with experian.

 

I've just had a thought though. The account numbers don't match up. The original account number is now different to the one listed on the default notice. AND a different sort code. Is this relevant?

[Jamesx81x]

Yeah as it has to be exact.

 

The account they have issued a default on needs to be the account noted on the notice.

[championless]

The thing is, the account number on the account opening paperwork that they sent me, the one for the loan, does not match the one on the default letter. Any suggestions?

[Jamesx81x]

Simply ask them which account the default notice refers to as it clearly is not yours.

 

See how they answer that!

[championless]

Can they do that? Just change account and sort codes?

 

Should i write this letter before the SAR?

[Jamesx81x]

No!

[championless]

Should i write this letter before the Subject access request?

[Jamesx81x]

I would give it a go ask them to explain which account the default notice refers to as it clearly is not yours.

 

The incorrect details make the default notice ineligible and it should not be on your credit file.

[championless]

James, do you know if there are any suggested templates for such things?

 

P.S I really appreciate all of your help on this so far.

[Jamesx81x]

Do you have a copy of the default with you?

[championless]

Here you go:

 

 

[Jamesx81x]

Need to write along the lines of:

 

I am writing with regards to the default entry you have placed on my credit file dated xxxx and the default notice dated xxxx.

 

Please confirm which account the one listed on the notice refers to as i am unable to match it any of my accounts.

 

I would also like to refer to the 4th principle of the Data Protection Act that personal data shall be accurate and, where necessary, kept up to date.

As this default notice does not relate to any account i have had with Barclays you are in breach of the Data Protection Act by adding the entry to my credit file.

 

Please provide me with a full explanation and remove this entry from my file within the next 14 days otherwise i will issue proceedings against you for breach of the Data Protection Act.

 

Something along those lines. Dont expect instant action from them but its a start and they are going to have to explain why the account number on the notice does not relate to any of your accounts.

[championless]

I was thinking i might send the SAR first, to see if they have a copy of the default before i say that i have one? What do you think?

 

Won't they just remove it and then reissue a default? Or do you think i should send the above letter first?

[Jamesx81x]

I would subject access request them get all the information you need on them but you can still send the letter aswell as the bottom line is it is incorrect and shouldnt be placed on your file.

 

I beleive they can re-issue a correct notice if it is within a certain time period but if they did this just pay off the outstanding balance if you can within the period they give you. Then the matter would be resolved and your credit file clear.

[championless]

Cool, will send both today. Just had a thought though, the original CCA mentions nothing about data protection or them sharing it with CRAs, do you think this is relevant James?

 

 

 

[Jamesx81x]

Not really it will have been on the application form but it does not matter whether notice was given or consent obtained when it comes to registering default information.

[championless]

I've received information back from Barclays following my SAR. I've received:

 

8 Fiched sheets of figures relating to the account from Jun 05 - Oct 08 (At the bottom of this it states account closed and the balance shows zero. It says this exactly "STMT Produced 13 Oct 08, Reason - Account Closed, STMT SHTS 00007 to 00007,Central 2nd Cl, STMT Addr - As per a/c heading")

 

A blank 'form of agreement' as shown earlier in the thread

 

AND Statement information relating to the account number i don't recognise.

 

It looks like that at some point in Oct 08, they decided to change my account number and sort code without telling me. I also sent the letter suggested above about the account numbers not matching up. I sent this to the data exceptions team. They sent me a letter stating that they could not deal with my case and referred it to retail banking customer services (who have since said it will take until at least 1st June to get back to me, can they do that if i asked them to remove the data from my report within 14 days?)

 

But that's all that was sent. Shouldn't they have sent me more than this? Like a copy of the supposed default? Notes on the computer systems that they hold about me, etc?

 

Any suggestions about next steps?