Motormile Finance (MMF) - Previously removed default reappears 18 months later

[lewis2015]

Hi there,

 

First post here but long been an observer.

 

Had an account with Lending Stream which due to financial difficulty defaulted in April 2011.

 

Motormile finance purchased the debt from Lending Stream in 2013, and I entered dialogue with Motormile as soon as I received correspondence from them.

 

I requested a full statement of account and a copy of the default notice, as no default notice was received from Lending Stream.

 

After hearing nothing back for over 2 months,

I chased Motormile who reluctantly admitted they were unable to obtain this information from Lending Stream.

The balance (including a high proportion of default fees, late payment fees etc) was £782,

Motormile offered to settle for £250.

 

 

I agreed this on the condition that the default notice would be removed,

as they were unable to show a statement of account or a default notice had been sent,

and Barry from Motormile called me a couple of days later to confirm he'd spoken with Lending Stream and they'd removed the default.

 

I paid in full via card £250 over the phone after receiving email confirmation from Motormile the default was being removed (see below).

 

"Email: Good Afternoon Mr *,

 

I can confirm that we have previous received confirmation from Lending Stream that they would update your credit file for the data they have shared.

 

I understand from our early conversation that this has now been updated accordingly.

 

Should you have any further concerns regarding this, please contact me again.

 

As requested, I shall arrange for our collections department to contact you to settle the account.

 

Regards,

 

Barry

Customer Relations Manager

Motormile Finance UK Ltd (MMF)"

 

After being declined for credit, I checked my credit file in June 2015 to find that the default had been reappeared on the credit file, this time from Motormile Finance.

 

I queried this with Motormile immediately.

I was promised a response to my complaint within 14 days.

 

 

Over a month passed (chased every week), blaming Lending Stream.

Once I pointed out on multiple occasions that the default was from Motormile and not lending stream

I received a response saying my compaint was being investigated and I would receive a response within 28 days.

 

 

Sure enough, a month later, I received this response:

 

"Dear Mr *.

 

Thank you for your recent correspondence.

 

We understand your concerns to be that:

 

· We have requested the removal of the default from your credit file previously, however this has recently re-appeared.

· You have applied for a mortgage and the default applied by MMF is having a detrimental effect to your application.

 

We have investigated your complaint thoroughly and have provided a response to each concern individually below:

 

We have requested the removal of the default from your credit file previously, however this has recently re-appeared.

 

We have reviewed all correspondence on your account and have found that you have previously discussed your credit file with us in December 2013.

We would firstly like to make you aware that MMF did not record any data with the credit reference agencies at this period

and as such, never agreed to remove any information on your credit file.

 

Your correspondence with us in December 2013 was in regards to data that was shared on your credit file by Lending Stream.

In December 2013, we explained that as MMF has purchased the account,

we are legally obligated to take over any information on your credit file.

 

 

We are obligated to do this to provide an accurate reflection on a consumers credit history.

The default that was originally applied by Lending Stream should have been removed in August 2013

and updated to show that the account had been sold.

As a resolution to your concerns in December 2013,

Lending Stream confirmed to us that they had updated your credit file accordingly.

 

You have applied for a mortgage and the default applied by MMF is having a detrimental effect to your application.

 

We are sorry to hear that you feel this default is affecting your chances to obtain a mortgage.

We are obligated to report factual and up to date information on your credit file to provide an accurate reflection of your credit history.

Lending Stream have confirmed to us that a notice of default was sent your postal address (*) on 11 April 2011

and the account defaulted on 25 April 2011.

 

 

We have provided you with a copy of this documentation for your records.

As you were provided with a notice of default, we are unable to remove the information as the data is factually correct.

 

We hope this response has brought the matter to an acceptable resolution and the action taken is to your satisfaction.

However, this is our final response, if you remain unhappy with the response I have attached a link to the leaflet about the Financial Ombudsman Service (FOS).

Should you choose to contact them, you will need to do so within six months from the date of this email,

enclosing a copy of the final response, which they will need for their investigation.

 

If you would like a copy of this response by post including the leaflet please let me know by return email.

 

FOS Leaflet: -

 

Kind Regards,

 

Pat Lee

Customer Relations Officer

Motormile Finance UK Ltd (MMF)"

 

The default reappeared in February 2015.

Originally this showed as a fresh default on this date, dropping off in February 2021,

but they have updated this to the actual date of the debt, dropping off in April 2017.

 

Removal of this default was essentially a term of me settling the debt (I refused to pay without this being part of the agreement),

at at no point was there an indication it could reappear.

 

 

On discussing this with Barry I was assured that this couldn't reappear,

completely contradictory to the claim in the response stating I was made aware of motormile legally obliged to taking over my credit data.

 

 

Motormile had 2 months to supply details of the default notice and statement of account back in 2013,

so now sending me a copy of the default notice after complaining in 2015, which was never received, seems ridiculous to me.

 

I issued a data access request last week of which I am awaiting an acknowledgement of receipt.

 

Where do I stand here? Do I have grounds to have this removed?

 

Motorfile seem firm on their stance, if I have a case would be happy to proceed with the court or FCO complaint, whichever I am more likely to obtain the outcome of removal.

 

I have applied for a mortgage on a dream home, most likely to come back as a decline next week solely due to this default.

 

Any advice would be much appreciated

 

Many thanks for your time - Lewis

[mch1991]

Unfortunately, you went contrary to every rule on dealing with such companies, which is never to conduct business over the telephone. Only ever correspond in writing, so that you have a paper trial and proof of any agreements in writing.

 

Don't think there is much you can do really. Others will advise shortly.

[obiter dictum]

If motormouth had purchased this account then it would be down to them to update your credit file as they are the new creditor

 

This looks to me motormouth were only collecting on behalf of the lending stream and you have been hoodwinked to secure payment.

[dx100uk]

no they purchased the account the text says so.

 

 

MMF are total fleecers and will say anything to get money out of a mug

esp if its done on the phone! the agent got a healthy cut of your payment in commission.

 

 

as the OP has found, they'll say anything but conveniently fail to record it in the account comms log.

as long as MMF have not changed the OC's defaulted date, sadly they've done nowt wrong.

 

 

the bottom line here is the OP go had blind.

 

 

next move is prove the sum quoted on the DN included penalty charges

and you might have a good chance in getting it removed.

[lewis2015]

Details of the repayments/loan

 

Loan amount: £400.00

Date: 5th Jan, 2011

Repayments made during the loan - £332.00

Remaining balance - £810.00 inc interest, fees etc

 

They allocated £310 of the payments I made towards 'interest', £22 to 'default fees' and nothing to the 'principle loan amount' - so they claimed that £400 loan remained unpaid, plus an additional £410 in interest.

 

It may be also relevant that the first months payment of £132.00 was paid just 2 days late (february 6th - included a £12 default fee).

 

 

I then paid another £200 around when the 3rd payment was due

- they took a £100 payment and number of smaller payments of £25-50 from my card

as soon as it was back into credit and effectively emptied my bank account (april 11th)

 

Passed to MMF,

they also added their own fees,

but discounted the original amount owed,

so total they were chasing for came to £782.00.

 

 

As mentioned MMF offered to settle for £250.00 which I accepted upon removal of the default that has reappeared. S

 

I have also noticed the default notice was not actually sent to the address I took the loan out with,

it was sent to a parents address that I was not living at (I did not receive, and they did not receive any default notice from them).

I did not update any address details with Lending Stream at the time.

 

The total paid out on this loan is £582.00 which is £332 to LS and £250 settlement to MMF.

 

Default reappeared Feb 2015 after being removed in Dec 2013 - is there nothing in this?

 

Many Thanks

[BarnOwl1]

I think and from experience of trying to " remove " defaults from credit files

that a debt purchaser company can only "update" credit files with basic data

and can't change a default date or remove an entry from credit files.

 

 

I was told exactly that which has been posted here

i.e. the credit files must be a accurate picture of how an account has be managed,

and paying off a defaulted debt is no reason for removing the credit agency entries.

[obiter dictum]

If Motormile owned the account the £250.00 will just be a short settlement to close their books.

 

Nothing stopping Motormouth selling the remainder on to a different DCA

 

When doing full an final that needs to be stressed that any balance remaining marked as satisfied will not be asigned to a new debt collector in writing

[lewis2015]

I did get this in writing:

 

Mr *,

 

I can confirm payment of £250 has now settled your account ref M*.

 

Your reference for the payment is – 875978926

 

Thank you

 

Does this cover this?

 

Many Thanks

[obiter dictum]

I can confirm payment of £250 has now settled your account ref M*.

 

That is true, Motormouth will no longer contact you as they have agreeed settlement.

 

But as stated, nothing stopping them selling the balance remaining to a different DCA

 

That is why it is so important in any settlement letter it is stated that any balance remaining will not be assigned to a new collector

[dx100uk]

have you a copy of the default notice issued by the original creditor

 

 

dx

[lewis2015]

Default Notice and Statement of Account attached.

 

Default notice first received in July from MMF - they were not able to present back in 2013.

[sillygirl1]

Full of charges so needs to be challenged and counter-claimed.

[obiter dictum]

Usual Duff Default notice by ameteurs

 

The default and termenation regs state that a numerical date has to be inserted to allow time to rectify the default.

 

Yours has 14 days, not an actual date

 

Totally unenforceable

[dx100uk]

Bar that

They can't include penalty or default fees in the sum detailed on a dn

 

Write to the OC

Demand they remove the defective default in 14 days

Else a formal complaint will be issued to the ICO

 

Dx

[lewis2015]

Thanks for the advice everyone

 

Written to MMF, lets see what comes back!

[lewis2015]

Good morning Mr*.

 

Thank you for your email.

 

I shall address each of your concerns, individually, below:

 

You believe that a numerical date must be inserted on the Notice of Default as opposed to just a time frame.

Please refer to page 2 of your Notice of Default which states that you have until the 26/04/2011 to make arrangements for the sums to be paid. The letter was written on the 11/04/2011, taking into account a day for delivery your afforded 14 days began on the 12/04/2011 and expired on the 26/04/2011. For this reason we consider that a date was specified on your Notice of Default.

 

Penalty and default fees cannot be included in the Notice of Default.

Section 1 of your Notice of Default.

 

The charges outlined in this section are a statement of accounts. These are not charges that you will incur by not adhering to the Notice of Default.

 

Section 3 of your Notice of Default.

 

This sections mentions a charge of £40.00 however this is not a penalty for not adhering to the Notice of Default. It is a charge that will occur after the expiration of your notice of Default.

 

Please refer to Section 88 of the Consumer Credit Act 1974, of which we fully adhere, should you require any further verification on a Notice of Default.

 

The Notice of Default is not in breach of regulation and remains enforceable.

 

We are obligated to report accurate information to the credit reference agencies and, as such, we are unable to remove this default.

 

 

Kind regards,

 

Darren Rogers

Senior Customer Relations Officer

Motormile Finance UK Ltd (MMF)

 

Direct Dial: 0113 8874 016

[lewis2015]

Just received the above from MMF

[obiter dictum]

They cannot use that default Noticle as it is not compliant with the Default and Termination Regulatons.

 

That is way above the pay grade of a Motor mouth employee

 

Now you have had that response go to the FOS

 

 

http://www.legislation.gov.uk/uksi/1983/1561/schedule/2/made

 

Those regs have been amended now in that the debtor has 14 days, not 7 to rectify any default

[sillygirl1]

I bet they sent the Default Notice (if they did indeed send it) by very slow post and not First Class.

 

What they are saying is a load of old tosh. This is why you need to stop sending them lettes and just leave the thing alone.

[dx100uk]

nothing to do with them

 

 

the oc sent the DN so as said the OC are your target.

 

 

dx

[fkofilee]

While this hasnt been replied to for a few days. I think that at this moment, all the OP wants is to get a Mortgage by getting rid of the default.

 

So did MMF Just administer the account back then 1st time round? Anyhow... MMF are persistent. If you have the proof that there shouldnt be a default, why not go down the LBA route?

MI did it with Wonga and they changed stance VERY Quickly and they paid the costs before we even got to court