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Help please - repaid a defaulted loan in 2006 but it's still haunting us!


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Sorry, not sure where to post this question!

 

Just done a credit check, which has brought up an old defaulted loan from 2006 (my husband took out a £2K loan for a period of 60 months in 2003)

 

At the time, it was referred to a debt collection agency and he paid it off a few months later. However, his credit file doesn't mention that it was settled - the date it was last updated on the credit file was August 2006. Also, he gets a weird statement every year from the loans company saying he still has a balance of a few hundred quid.

 

My questions are:

 

When he defaulted on the loan, wouldn't the loan company have passed on ALL the debt to the debt collection company?

 

If the loan ran the agreed length, it would have finished in 2008 - if there was an outstanding balance, wouldn't the loan company have chased it up back then?

 

Who do we contact to fix this? The loan company or the debt collection agency?

 

Don't know where to start I'm afraid!

 

Thanks v much for any advice you can give :)

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When he defaulted on the loan, wouldn't the loan company have passed on ALL the debt to the debt collection company?
Yes if they passed it on to a DCA.
If the loan ran the agreed length, it would have finished in 2008 - if there was an outstanding balance, wouldn't the loan company have chased it up back then?
Probably.
Who do we contact to fix this? The loan company or the debt collection agency?
The credit reference agencies. Tell them they are processing incorrect data which is contary to the Data Protection Act. They will contact whoever has registered & updated the default.

 

However it will still be registered on your file albeit marked settled for six years from when the default occured.

Edited by cerberusalert
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Thank you! Still don't understand why the bank is sending through the yearly statement saying there's a balance of a couple of hundred quid if they handed the debt over to a collection agency - do you think there's a clerical error their end?

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Company Name:

RIGP FINANCE LIMITED

 

Company No: 00384450

Registered Office:

Incorporated: 18/12/1943 25 GRESHAM STREET

LONDON

EC2V 7HN

Company Type: Private Limited Company

Company Status: Active

Accounts Type: DORMANT

Latest Accounts to: 31/12/2009

Latest Return to: 22/04/2010

Although they are still registered as an active company their a/cs are dormant which suggests they are not actively trading.
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not sure - his mum dealt with them at the time so I've asked her if she can dig out the paperwork. It mentions RIGP on the credit check, in the 'financial associates' section next to his mum's name, so perhaps the credit agency would be able to let us know the exact details for that company?

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Unless the default is causing you credit problems I would leave things be otherwise you may stir up a hornets nest. Even if you paid the extra money and or your file was marked as settled the default will still show until next year in any case & you would still be a few hundred out of pocket + the grief of having to deal with whoever owns Rigp Finance Ltd now.

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Thanks for the advice - it's really appreciated! There are a couple of other small things on his credit file (although these are marked as settled) that will disappear at the same time, so we were working towards mid 2012 as a date when everything would be cleared. We were just worried that this one might not go away!

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Not only does the default drop off the credit file after six years but if there is any outstanding debt which has not been paid for a period of six years (five in Scotland) it becomes Statute Barred as long as no written admittance has been made. Once SB it cannot be enforced through a court etc & a default cannot be re-registered.

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