MKDP put default on nationwide current account debt 5yrs later!!

[:Boy:]

Morning all,

 

Would like some advice please on the following.

 

I have just checked my Credit file with Equifax and there has been a 'Default' added by a company called MKD LLP for £286, with the 'Default' date added as 2010.

 

Now I remember having an old Nationwide account,

that was made up of charges for £286,

but I refused to pay,

as it was made up completely of charges,

and I lost out on claiming them back as the test case happened.

 

However nothing was ever on my credit file for this bank account,

never received a default notice

and not heard a thing.

 

my question is,

can this company just place a Default on my credit file,

with a made up date and not notify me? S

 

urely this has to be unlawful in some respect?

 

I look forward to any replies.

[citizenB]

When was the last time you made any contribution to the account ?

 

It is my understanding that a default marker should be placed within 6 months at the latest of the breach.

 

If this is a current account, then there is no need for them to send you a Default Notice, but they should have sent you a formal demand for payment. Unless the original creditor has placed a default marker on your file, then I don't think a DCA can simply add one - they can only update what is there. So what you need to find out is.. who placed the original marker and when did MKDP take over the account

[:Boy:]

Thank you for the reply.

 

Last time the account was used was probably around 2006/07 time.

 

Nothing was ever on my credit files from Nationwide.

 

I cant remember receiving a formal demand at all.

 

Looking at this, the DCA has just placed a Default on my credit file.

 

I have copies of all of my credit files and there has been nothing till now.

 

I have no idea when MKDP took over this, but I will endeavour to find out.

[citizenB]

If your dates are correct, then aside from the fact that this debt is likely to be statute barred then it should also have dropped off your files anyway. I will find someone who might know more about the procedure to advise you.

[:Boy:]

Thank you very much, I have just typed this letter out:

 

Re: Formal and Final Demand

You recently Added an entry to my credit file for accounts which I am unawareof, the account numbers XXXX6486

 

Upon querying this with yourselves via the Equifax online dispute system youreplied to say your information is correct. (I attached the Equifax DisputeTranscription)

 

As I have already stated I do not acknowledge any debt with yourselves orwith the company you claim I owed outstanding finance with (Nationwide?)

 

You have entered a default onto my credit file with all three referenceagencies (I attach a copy of my Equifax report for ease of reference). Thisdocument clearly shows no Default or entries from Nationwide.

The Default which you have added to my file are a breach of the data protectionact for the following reasons.

1. All data must be accurateand up to date.

2. You must carry over theoriginal default date if you have purchased an outstanding account from anothercompany

3. You are only able to updatemy credit file if Nationwide had removedtheir original default from my credit file (thus treating it as a continuationthe an original account, but this is not the case)

4. You have effectively addedthe default by which would impair mycredit score for a six years.

 

I will be looking to Sue you for Libel if you do not comply with my request.

 

I hereby give you 28 days notice to remove your default notice from all 3credit reference agencies.

 

Please be aware that I have already opened a file with the Informationcommissioner’s Office as you have breached the Data Protection act, this letterwould be used as supporting evidence if you fail to remove your recordsimmediately.

 

[:Boy:]

I am so angry it is unbelievable

[citizenB]

I have asked someone to look in on you.

 

Is there anyway you can establish for absolute certainty,

the last time any payment was made to the account,

 

because if it was more than 6 years ago, then any balance is statute barred anyway.

 

. although this doesn't mean that the debt disappears,

 

it just means it cannot be collected via the court and the OFT consider it unfair to pursue after this amount of time.

[renegadeimp]

Take out the phrase "looking to sue for libel" and change it to "i reserve the right to take legal action without further notice to you"

[:Boy:]

I am racking my brains, it would of been 2007 at the latest.

 

I have found a letter that I sent to Nationwide in 2008 about the amount being made up of charges as one DD for £20 didn't go through,

and then the charges mounted up and I refused to pay.

 

However, like I said, nothing was ever put on my credit file

[citizenB]

Unless you can be really certain about the 6 years then it might be better not to mention Statute barred just yet (although you haven't mentioned it in your letter)

 

The last payment/acknowledgement of liability needs to have been earlier than June/ July 2007.

 

However, there is something seriously wrong in the way they have applied that marker.

[:Boy:]

Exactly. I cant believe they have done it more than anything. If I have to pay, I will, but I don't see why my credit file has been damaged because of there tactics. I will have no hesitation in taking this to County Court.

[BRIGADIER2JCS]

I think you need to take a step or two back before sending that letter!

 

You need to know exactly on what date Nationwide defaulted the account,

often these residual amounts made up of charges are not defaulted until the creditor decides to sell the debt on.

 

From experience and reading that you wrote to NW in 2008 refusing to pay the charges

I would think that any default on the account was placed after that date,

your letter of course restarted the 6 year limitation period at that point,

and if you corresponded at all after this letter in 2008 the limitation period has restarted with each letter.

 

Personally I would hold off on that letter, it is not factually correct and I don't think it will help you,

you MUST ascertain the date NW defaulted this account exactly,

you can do this by phoning NW and asking,

simple and cheap or you will need to make a SAR to NW cost is £10 and they have 40 calendar days to comply.

 

NW will also be able to give you the date of the last financial transaction as well.

 

I'm a sure as I can be the account was defaulted just prior to sale a common process.

[:Boy:]

So essentially, the DCA can add a default on my Credit file without telling me or providing a default notice?

and that NW who have never put anything on my credit file since 2006, no updates, entries, credit information whatsoever

can hand it over to a DCA who can then add a default?

 

I was on the assumption you could not put a default on a credit file if it was made up of charges, or am I wrong?

 

Thanks for your reply

[citizenB]

Brig, I think this is what we are trying to establish, from previous Credit files, it would appear that NW NEVER placed a default marker on the file and this one from MKDP seems to have just appeared with a backdated date on it. That is my understanding of the situation.

[BRIGADIER2JCS]

As citizen has already said a current account is not a regulated credit agreement so no Default Notice is needed,

again as CB said a final demand for payment would have been sent prior to the account being defaulted.

 

Indeed some current account providers DO NOT report the accounts at all unless there is an overdraft facility OR until there is a problem.

 

Yes NW was perfectly within its rights to sell on the account and as said my guess is the account was defaulted just prior to sale,

and MK then has to report the change of ownership/ default date/default sum, as suggested contact NW get the details from them.

[BRIGADIER2JCS]

Brig, I think this is what we are trying to establish, from previous Credit files, it would appear that NW NEVER placed a default marker on the file and this one from MKDP seems to have just appeared with a backdated date on it. That is my understanding of the situation.

Hi CB,

 

I'm afraid this is common with current account debts,

as I mentioned earlier they are not always reported at all unless there is an overdraft facility

OR as in this case there is a problem i.e. refusal to pay the ''charges'' delinquent accounts are then default just prior to sale,

with out the need for the OC to make any entry at all, leaving the debt purchaser so to do.

 

A creditor does not have to report prior to sale of an account.

 

The most cogent point here is that the default should not have been placed anyway

the ICO Technical Guidance on Defaults is clear

' That if a default sum is made up of charges without which the account would not have been defaulted NO DEFAULT SHOULD BE PLACED.

 

This is why I suggest the OP checks with NW for the default date prior to any letter being sent.

 

I have given details of the ICO guidance,

MK will not know to what the balance refers.

Edited July 29, 2013 by BRIGADIER2JCS

[:Boy:]

Thanks to the replies.

 

I have sent a SAR for all details pertaining to this account from NW.

 

I as stated before, it seems to be an abuse by DCA's to place defaults onto someone's credit file.

I never had a credit agreement with NW, it was a basic account, not even a visa debit card.

 

One DD bounced for £20 and then over £200 of charges.

 

I refused to pay said charges.

 

Nothing was ever placed on credit file from NW.

 

Now I get a default from a company who 'supposedly' have bought this debt and placed a default.

 

But you only place a default for credit.

 

In all fairness a CCJ should of been issued.

 

The default is made up entirely of charges and you cannot place a said default for charges.

 

I am just annoyed that this has happened.

[:Boy:]

Today I have received the following responses from MDP and Equifax through the 'my questions' on the Equifax website:

 

This was originally Nationwide account that was opened 10/08/2006 at a previous address and defaulted 01/09/2010

 

Nationwide sold the defaulted account

 

MKDP LLP have loaded the data to your credit file as we are now the legal owners of the account

 

The default is recorded correctly

 

There was activity on the account in March 2008 therefor the account is not Statute Barred

 

A final response letter was sent Mr XXX October 2012

 

There was no activity on the account in March 2008, that was me questioning the charges on the account. I have never received anything from MKDP

 

the response after from Equifax is:

 

Thank you for getting in touch.

 

Mkdp Llp has investigated your query and have told Equifax that the default information is correct and should remain unchanged.

 

This information is supplied by the company and we can't change it without their permission. You should get in touch with the company directly if you need more information.

 

The note that we added, stating that your information was in dispute will be removed within 24 hours.

 

You’ll find more information about your credit report at: http://www.equifax.co.uk/help. If you have a question, you should find the answer in our FAQ section. If not, you can send us an online query, and attach your documents to it – no need to worry about them getting lost or delayed in the post.

 

I hope you find this useful. If there’s anything else we can do for you, please let us know.

 

Kind regards

 

What's next? Not heard back from either MKDP or Nationwide regarding this. I would like to know where the piece of info is that's states that 'Defaults' that are made up of charges cannot be placed on a credit file, is it under the CCA? Thanks again for any help.

[BRIGADIER2JCS]

Reminder to Nationwide & MKDP!

[:Boy:]

Hi all,

 

Its been two weeks and not heard anything from MKDP or Nationwide, should I send a 'Letter before action'?

 

Thanks for all of your help.

[:Boy:]

Ok,

I have sent the first letter asking for 28 days notice to remove default, not received anything.

 

Sent a further letter giving 14 days notice or I will take Court action, nothing back from anyone (that was on Monday the last day).

 

Both letters sent recorded delivery.

 

I also sent a copy to the Compello ltd who are the parent company, and not heard anything.

 

Should I go ahead and file a N1 for costs and removal of default now, or send a third letter?

 

I have done this before with Cabot financial and they never responded to the N1 and I ended up with Cabot's solicitors

who were desperate for me to settle after they realised I could send the Bailiffs in.

This is what I would like to see happen here and my default removed.

 

Any advice would be greatly appreciated.

[BRIGADIER2JCS]

I'm afraid I don't follow the 'asking for 28 days notice etc.,

Reading back through the thread, I notice that the reason for the placement of the default was explained fully.

 

The question of their not being a default entry on CRA files from the original creditor does not been the account does not mean the account was not defaulted, MK are/were obliged to report the details of the account as passed to them by the creditor, they DO NOT NEED TO SEND YOU A DEFAULT NOTICE OR INFORM YOU OF PLACING THE ENTRY they are reporting the status of the account as it was when the account was purchased.

[:Boy:]

Having just called down after Brigadier2JCS little sniping comment,

 

surely the DCA should at least reply to me, they have had close to two months.

 

The only other way I can think of dealing with this as MKDP now own the debt,

is going after the charges that this debt is made up of through the CC.

 

I might or might not be successful, but if this is the only way the DCA will speak to me, so be it.

 

I just need to clarify if anyone is reading this, is that this was a basic account.

No visa/visa electron card, just a nationwide cash card, no Overdraft, no credit facilities at all.

 

Nothing ever put on credit file, no searches nothing, as this wasn't a credit agreement.

 

I have had one letter from MKDP recently, that said they will take me to County Court for this.

 

However they have defaulted me.

 

This is like owing money to a milkman, not paying, and then them defaulting you.

So so wrong.

Look forward to any replies.

[:Boy:]

Hi all, just hoping for some answers or advice.

 

I have had a 'Default' placed on my credit file from a DCA called MKDP from an old bank account with Nationwide. I have an ongoing complaint with the FOS, and have taken advice from the OFT and the FCA. My questions are this (as no one can answer them):

 

When you receive a Default Notice and you have to repay by a certain date and you don't, when should the Default be placed on your credit files?

 

When the Default notice states that Court action will be taken for the recover of the monies and no mention of a Default/credit files impacted, can this debt then be sold 4 years later and a Default be placed on your credit file, when a CCJ should of been chased (and I would like to add that the bank never placed anything on my credit file)?

 

Why can a 'Default' be placed on my credit files for a basic bank account, that was made up of charges, and has been confirmed by all parties that this was not a credit agreement?

 

I look forward to any replies. I am going through the Credit Consumer Act online and so far I cannot find anything that helps me. It seems that the world of Credit Files/Credit regulation is a world that no one wants the average person to learn.

Edited December 5, 2013 by :Boy:
question mark added

[AndyOrch]

I will give you a few pointers Boy

 

Overdrafts are not covered by the CCA1974 except for Part V. Overdrafts to not attain a Default Notice its Recall/Demand Notice and Termination as there is no credit agreement in place only a Facility service agreement.

 

1.1 What is covered by the s74 determination?

 

A determination under s74(3) was made by the OFT with effect from 1 February 1990. It applies to d-c agreements enabling the debtor to overdraw on a current account, under which the creditor is a ‘bank’ as defined in the Bankers’ Books Evidence Act 1879, provided that certain conditions are satisfied – see Q1.5.

 

A separate determination was made in respect of certain agreements connected with the death of a person.

 

Copies of the determinations may be obtained from the OFT.

 

Agreements covered by a s74(3) determination, and satisfying the relevant conditions, are exempt from most Part V rules including s61(1) on execution. However, the Agreements Regulations will apply to any document embodying such an agreement, and to any term expressed in writing – see Q1.2.

 

1.2 Are all bank overdrafts exempt?

 

The s74 determination in respect of bank overdrafts (see Q1.4) applies subject to the following conditions:

 

•the creditor must inform the OFT in writing of his general intention to enter into such agreements;

•the debtor must be informed, at or before the time an agreement is concluded, of the following:

o the credit limit (if any)

o the annual rate of interest and any charges applicable, and the conditions under which these may be varied

o the procedure for terminating the agreement;

 

•the above information must be confirmed in writing.

 

Furthermore, where a debtor overdraws a current account with the tacit agreement of the creditor, and the account remains overdrawn for more than three months, the creditor must inform the debtor in writing not later than seven days after the end of that period of the annual rate of interest and any charges applicable.

 

Regards

 

Andy